The Risks of Debt Default on the Economy and Jobs

[phkrause]

http://www.americanprogressaction.org/issues/2011/07/boushey_testimony.html

[Paula]

Want to eliminate debt and overhaul the economy? Abolish the Fed:

This is how our monetary system works:

1. When more money is needed in the economy, the government tells the Federal Reserve to print some money (well, now money creation is digitalized)

2. The new money which is created is then loaned to the government which then injects it into the economy

3. Now, the money which is in the economy is basically debt, and is expected back, with interest, by the Fed

4. But if all the money which is in the economic system is loaned in the first place, where does the money for the interest come from? NOWHERE! IT DOESN'T EXIST!

5. This is how the government will always owe more to the Fed than what is possibly allocable.

Remember the FED controls the nations money!!

“He who controls the money supply of a nation controls the nation”

President James Garfield

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." — Rothschild Brothers of London

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

The truth is, the DEMS AND the REPUBS work for the same person. The right wing/ left wing rhetoric is just that. It's a show to keep people THINKING that if this side is elected things will change... then when they don't we elect the other side and then the other comes back into power... always there is the promise of change. This keeps people from looking behind the curtain to see who the wizard truly is... And we, CHRISTIANS, brothers and sisters sit here and argue for the Dems or for the Repubs... when they are ALL cut form the same cloth.

So, in case you didn't know, here is a little info on how our money system works. Once you understand this, you'll understand why it is that regardless of WHO is in office(Rep or Dem), the Debt ceiling will ALWAYS have to be raised. We will NEVER be out of debt, no matter who runs this country (so long as the FED does).

The Federal Reserve System -

is NOT Federal . . . has NO reserves . . . is NOT a system

Their deceptive name tries to hide the fact that they are actually a Privately Owned, Central Bank, with no reserves. They "create" money and then loan it to our government (actually exchange it for U.S. bonds) thus creating an endless cycle of national debt. This is referred to as "monetizing the debt," which erodes the standard of living for all Americans.

It is important to understand that the FED does not actually print money, All U.S. currency is in fact printed by the Bureau of Engraving and Printing (BEP). The Fed, rather is the master distributor of the money, which they "create" this way by executing a simple computer entry in their accounting system.

What is The Federal Reserve ? and What do they do ?

Despite what many people think . . . the Federal reserve is NOT . . . an agency of the United States government.

They are no more a part of the Federal government than is Federal Express. The Federal Reserve is actually a privately owned corporation, owned by a secret group of international bankers. In essence, they are a private banking cartel who have a total monopoly on "creating" money for the U.S. government. The Fed's only real agenda is to turn a profit . . . and they do so . . . at the expense of every single man, woman and child living in the U.S.A..

If you ask the average person you meet on the street . . . What is the Fed ? and What do they do ? . . . most (if they have any idea at all) will say they think the Fed is an agency of the U.S. government . . . and that they serve to help stabilize our economy by controlling interest rates and providing liquidity when needed.

Nothing could be further from the truth . . . they really have 1 agenda and 1 agenda only . . . that is to turn a profit.

They do this in 2 different ways:

They manipulate interest rates to create "boom-bust" cycles which always work out to the advantage of the hidden elite "insiders". . .

as they know exactly when our economy will boom . . . and when it will bust.

They increase the money supply by "creating" money through the deal they've had with the U.S. government, ever since the Federal Reserve Act of 1913 was signed into law.

Accordingly, when the U.S. Government needs money, they go to the Fed to borrow the money. The Fed calls the Treasury and asks them to print x amount of Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the Fed 2.3 cents for each note. The Fed then lends that money to the government at face value plus interest. The government has to create a bond for the loan amount as security for the loan.

Now the government owes the private ownership of the Fed the face value of the bonds plus interest. In other words, the Fed earns interest by "loaning" that money to the U.S. government. Imagine that . . . they earn interest by loaning money which is not even theirs to loan . . .

which they just created out of thin air . . .

So essentially every bill they "create" has a debt associated to it . . . and if the debt is not paid . . . what do you think they do ?

That's right . . . They create more Federal Reserve Notes so they can loan more to the government (actually exchange for U.S. bonds)

in order to pay off the debt, thereby growing the national debt even more.

This is what we refer to as a debt monetary system . . . in other words . . . our currency has a debt attached to it before we ever spend any of it. We can never get out of debt because it is a self propagating, vicious cycle, that will ultimately end with the complete destruction of our currency and bankruptcy of our nation.