For many, the US dollar is the country’s fiat currency. It all begins with the US Treasury just who creates bonds which are governing administration IOU’s that are paid back for a specific time period with attraction.
The entire system of making money from nothing is a ready-made scam. It all starts along with the Federal Reserve and the YOU Treasury exchanging IOU’s. A check is an IOU to get cash and a relationship is an IOU to be repaid with interest at some later date. Cash has existence once the Fed problems someone a check.
It is a Ultimate Government backed and sponsored pyramid scheme, the place only the banking top notch who own the Federal and other central banks world wide, massively profit by stealing from generations of innocent locals.
Within the financial banking sector we now have what I refer to as “magic money creation” which is actually called “Fractional Reserve Lending”. Here is an example of how fractional reserve lending works. Let’s pretend someone deposits $100. 00 into a bank account, the bank who received that deposit currently is legally allowed to remove $90. 00 or ninety percent of your deposit and re-lend it to someone else.
Once again nothing backs these dollars except IOU’s. Furthermore, for the hard work each individual US citizen does to earn his or her salary, a part of it eventually ends up at the Treasury in the form of income taxes. Goods on the market pays the principle and interest on the bond that your Fed bought with a examine from nothing. US citizens will be forced into paying fees for the use of our present-day money supply system.
The person who received your money from the bank as a loan will use it to buy some thing such as a car. Then see your face will pay the car dealer together with the money he borrowed. Now the car dealer will deposit this money into an individual’s own account at the bank. Now there is $190. 00 on deposit and the bank can legally steal Three months percent again or $81. 00 and lend the idea out.
At last over time, there becomes too much bonds at the Fed and cash in the Treasury. The Treasury now takes this excess cash and deposits it into the various organizations of government.
Nonetheless it’s important to note, that when all the Fed writes and problems a check, there is no funds what so ever inside the account to cover the amount of the fact that check. The account those checks are written with will always carry a zero balance. Therefore every single dollar that exists, is usually borrowed and must be paid back.
The Treasury holds each month auctions to sell off it’s bonds to primary merchants, who are the major bankers. Then the US Federal Preserve enters the game by investing in all the bonds from the mortgage lenders through something called “open market operations”.
The next person in that case comes along, and borrows money. Once the new borrower pays off the seller for what that they bought the money again can be re-deposited into the bank now there is $271 dollars on deposit. This creation from money through deposits and loans (fractional reserve lending) keeps re-occurring to when at some point your original $100. 00 deposit has grown to make sure you $1000. 00 (ten moments the amount of your original deposit) in fiat currency made out of the bank.
In that way actually leaving your bank account with only $10. 00 or ten percent of your finish deposit. However your lender statement will still demonstrate the entire $100. 00 greenbacks or one hundred percent of your money, on deposit in your balance.
Which is consequently spend on wars, military, government salaries, social programs, general population work projects and other shortfall spending that keeps with re-occurring. Next all those governing administration employees and military personnel take their salaries and deposit them into different bank accounts throughout the usa. This is how the fiat revenue now enters the store-bought banking sector.
Once again the banks go back to the US Treasury auctions the next month buying more bonds and selling them to the Federal Save. And every month this cycle of buying and selling may keep on getting repeated.