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I’m currently reading a book Web of Debt by Ellen Brown that is so intriguing, I just had to share it with you. This book talks about how bankers create money out of thin air on computer ledgers as loans which are recorded as deposits in their bookkeeping and then serve as the basis for “reserves” with the privately owned Federal Reserve. Using the international banking cartel’s principle of fractional reserve banking, banks can create money as loans up to 10 or more times the value of their reserve accounts with the Federal Reserve. The banker’s created money, on which they charge us interest, is backed up, not by gold or silver, but by the good faith and credit of the citizens of the United States. So the bankers are making profits by charging us interest on loans created from thin air, based on our own good faith and credit. This seems like abuse to me. The other insidious thing about this is that the people grant power to the federal government in the Constitution to create and control money. The federal government has given this power to private banking interests, the bankers make money out of thin air based on this granted power, and then loan that money to the government at interest. If the government retained moneymaking power and made its own money out of thin air, the country would not have to borrow its own money from the bankers, owe anybody interest, or be in so much debt. The control of the money supply is also important. When there is enough money created to meet the demands of commercial exchange, the economy does well and people prosper. When there is too little money created, money becomes scarce, people can’t buy as much, businesses can’t expand and hire new employees, unemployment rises, and the economy and the people suffer, much as we are currently in our Great Recession today. During times of recession, many people lose their jobs, businesses, homes and other assets through firesales or bankruptcy: these assets are sold for pennies on the dollar to people who have money (the bankers create money out of thin air only for themselves and their friends). Periodically, banking interests deliberately act in concert to restrict the money supply by raising interest rates and/or refusing to make loans (like they are doing in our current Recession), causing a recession that allows these interests to cheaply buy up stock, companies, businesses, property and personal assets of private citizens. By then expanding the money supply (lower interest rates and more loans created, easier credit), the value of the dollar goes up along with the value of their newly acquired assets. This process acts to enrich the wealthy banking class while impoverishing the rest of us. Internationally, banking interests pump up the value of the dollar as compared to third world countries currency, and with that value pillage the assets of these countries, much as they do that of U.S. citizens during a contrived recession. When the government has the power to create and control money but has deferred it to the Federal Reserve, the government also borrows money from the bankers at interest. Each year, only the interest on the federal debt is paid (and this is rising exponentially and soon will cost more than all federal revenue collected each year), while the debt principal continues to rise with deficit spending. If the federal government retained its Constitutional power to create and control money, it could spend its own money without borrowing from bankers at interest, and provide an adequate money supply in terms of lower interest rates and making more loans to businesses and consumers to fuel the economy. A real U.S. Govt. Bank would create money out of thin air for itself, instead of letting the bankers do this for themselves, money could be created to pay off the bankers, there would soon be no more federal debt, principal or interest, and there would not be a need for high taxes to fund necessary government spending. Businesses currently lacking credit to grow or expand, or hire new employees, and consumers making purchases would get the credit they desired and the economy would begin to purr again. Foreclosures and bankruptcies could become rare events as community banks associated with the U.S. Govt. Bank extended credit as needed at no or low interest rates to consumers and businesses. Homes purchased with a 30 year banker’s mortgage for a sale price of $500,000 under current private money management, end up costing the homeowner nearly $ 1 million with interest and principal paid over the 30 year period. With a low interest U.S. Govt. Bank mortgage, interest and principle would be more like $550,000 paid over 30 years—the cost of housing and pretty much everything else will be less as businesses and consumers pay less for credit. With lower taxes and readily available credit, new companies plus others that previously deserted America for cheaper offshore business costs, would relocate to the U.S., and entrepreneurs would flourish with innovation, creating wealth and prosperity again for our nation. What is the downside to such a prospect? I’m still struggling with understanding the principles of money creation and control, and could use any enlightenment any of you might have to offer. Do you think the U.S. could possibly be so bold as to take back the power to make money in America from the powerful international bankers? How do we let the people know, in a way they would understand, about how we’re being swindled by these bankers and cheated out of prosperity and plenty? In the mean time, I’ll finish reading Web of Debt and continue studying the subject matter.