Tuesday 10 February 2009

Money

How is money created?

It is created from debt.

In the US, the government gives government bonds to the Federal Reserve (which, by the way is not part of the government) in exchange for money. The bonds are like IOUs - the first step of debt.

This money is put in the bank. The bank then creates more money to lend out with this original deposit as a guarantee. More debt.

People are charged interest (which used to be a crime called usury). This is creating more money into the system.

The amount of money in the system goes up, therefore there is inflation and people get less for their dollar (pound, euro, yen). they are bound/obliged to paying back their loan plus interest and therefore must pay this off with their labour. they are slaves. they are controlled by those who control the money (who are NOT elected).

Following a couple of documentaries "Money Masters" and "Zeitgeist 2" (and someone speaking about not much else for 2 months) this is slowly sinking into my head.

Think about it.

No comments: