Central bank chicanery and us revenue units
“Unfortunately, no one can know what the Matrix is. You have to see for yourself.” ~ Morpheus in the movie, The Matrix
The Oxford English Dictionary defines “tricks” as “legal deceptions, falsehoods, abuse of legal forms; the use of subterfuges and tricks in debate or action; subtleties, sophistry, deceptions”. You don’t have to read beyond the “legal tricks” to understand the impact central banks overlook on us revenue units. But perhaps most worrying is where central banks seem to be heading.
A quick review of the role of central banking with respect to the currency informs us that one global monetary system dominates and controls all other systems in the world. Like the 800 pound gorilla in the living room, this fact becomes impossible to ignore once you see it.
Just as it is impossible to fully understand planet Earth without realizing the role of the solar system that contains it, it is also impossible to fully understand money separated from the monetary system.
The global monetary system is a network of 17 central banks around the world, of which the Federal Reserve Bank is the US Central banks are the only banks capable of issuing currency (a private product by the we pay), issued through a “fractional bank reserve”, loaned and repaid with interest. This formula, called “multiply expansion,” in the Federal Reserve brochure, Modern mechanics of money, multiplies the profits for the architects of the system and their cronies.
Currency flows from the government level to commercial and local banks when a country’s government borrows money from its central bank. When a business repays a business loan plus interest (also known as debt service), it passes bank loan charges to its customers as increases in the price of goods and services. Over time, what started out as “simple” interest turns into “compound” interest, which, in turn, increases prices at an increasingly rapid rate.
As a result, we income units must work harder and pay more for the same basic goods and services that people in the 1950s and 1960s paid much less for. This exponential rise in the cost of living has become glaringly obvious in the real estate and insurance industries.
Once in power more it takes power to continue to exist.
The 2008 economic crisis put the Fed to the test. It used the desperate measure of pouring trillions of newly issued money into a struggling monetary system through a series of quantitative easing (QE) to “stimulate” the economy as well as its position of power. His monetary strategy led most Americans happily down the yellow brick road of the appearance of recovery and wealth.
However, like the Wizard of Oz, appearances are often deceptive. In reality, the excess of newly issued currency contributed to a deeper devaluation of the dollar (it is now worth less than 3 cents). Going forward, the Fed would have to keep up with what the QEs had started. To continue to ensure liquidity in the market, increasing amounts of currency should be injected into the system.
Here it is where it gets interesting. By all accounts, to maintain continued liquidity, the Fed’s tactics have moved to aggressively buy public assets, corporate stocks, and “toxic” real estate, contributing to the double-digit rise in the stock market. The increasingly drastic measures provide a type of expansion that puts the economy at risk of being swallowed up entirely by the financial sector. Think: higher concentration of power.
This is why:
“So central banks have a problem here, now they are ‘forced’ to buy assets to avoid market downturns, but one should ask ‘who will they eventually sell to?’ The answer, of course, is ‘no one’ because no one is old enough to take these assets off their books. “ Bill Holter, central banks will destroy their own currency by doing what they do … creating currency and credit. From here, the faster they run, the faster the bogeyman catches them, April 22, 2017
The Fed has the legal authority to buy assets endlessly, which can then drive up prices that virtually no one can beat. Higher costs of living due to higher inflation do not translate into a recovered economy, contrary to popular opinion, and especially for most Americans without assets.
As long as someone receives a paycheck, they seem to care little about the system that produces it., an entrenched system that owns and controls the ability to create an endless supply of money (new credit). Also, if central banks decide to transition to blockchain technology, as discussed in my recent February and April blogs, it would not be a decentralized application, as Bitcoin is. Instead, blockchain technology would simply enhance the already centralized central banking system.
With each successive economic recession, the Federal Reserve doubles down to minimize the economic impact on society. Minimizing the economic impact equates to the Fed taking more and more control of the situation to maintain its power and in an attempt to counter the ongoing exponential loss of value in all fiat currencies. The role of the central bank is like a snowball that gets bigger as it rolls down the hill; I wonder if anyone sees what I see.
“Only the little secrets need to be protected. The big ones are kept secret by public disbelief.” ~ Marshall McLuhan, author