What occurs in the Federal Reserve and the banking system lately is just so outrageous that I thought I need to do another summary of how this scam works. It is great that so many people are waking up lately to the scam of central banking. I also see a lot of divergent views and I thought that an article simplifying the process might be helpful.

So the underlying scam here is beyond central banking. It is fractional reserve landing. If any other entity besides a bank can conduct what is called fractional reserve landing, they would be convicted of fraud, because that is based on a fraud. You can’t take somebody’s money, promise it to the person and lend it out at the same time. When I give my money to a mutual fund or a hedge fund those investment entities take my money and they tell me we are going to lend this money out and we may get you a 75% return, we may lose your half your money or lose all of your money. That’s a market free way of conducting business.

What banks do under fractional reserve landing is fraud. They take your money, they promise it to you and they lend it out at the same time. Now this creates a lot of inflation, because the money is lent out and then re-deposted and then lent out again. This inflation robs the average citizens and the depositors are fundamentally at risk, because their deposit money has been lent out. In the past, looking back in history, when banks did this type of fraud it would collaps fairly quickly. The loans wouldn’t get paid back and the depositors would make a run on the bank demanding their deposit money back, which wouldn’t be there at this moment. So, this type of fraud collapsed quickly and depositors were upset rather than insisting on the correct type of reform, which would require banks to be honest and say – yes we have lent out your money, you may not get it back, just like if you deposit your money with any other investment entity. And if you do want your money to be guaranteed, to simply put it in a separate type of account, which is not subject to fractional lending. That is the simplest solution in my opinion to the entire scam of fractional banking and central banking that is required to enable this scam.

However in the past this wasn’t the solution that the banks wanted, because the banks make a fortune through this scam. What banks chose was central banking, where the leverage loans started to collaps and the depositors demanded their money there is a central bank, which can create money out of thin air and inject it into the banks so that the depositors are paid with this currency. And then this counterfeit currency flows through the entire economy creating more inflation, so that it is easier for the loans to be paid back in that inflated money.

So central banking is really just a system that is necessary to enable the underlying fraud of fractional reserve lending. It is almost unimaginable how much wealth is robbed through this system. Because all of this inflated money benefits the banks and it is an enormous amount of inflation – trillions of dollars a year. This has caused the dollar to lose 98% of its value since we had a central bank almost a hundred years ago. This is an incredible amount of wealth that has been stolen and what’s more it makes it almost impossible for the average american to effectively save money, because the underlying currency is constantly inflating and plus you are being taxed on the imaginary inflated value of your savings. And when the average american can’t save money effectively they are forced to go to a bank and take a loan for everything and then you have a nation of servants, which we have developed very quickly into.

Maybe the simplest way to view this and to explain it to other people is just to ask why would banks be given the exclusive right to counterfeit currency? If your neighbour in his basement counterfeited hundred dollar bills and the Secret Service came to arrest him and your neighbour said – oh, no, don’t arrest me, I am going to spend these 100 dollar bills and stimulate the economy you would laugh at that deffence. And yet when banks counterfeit money and they say that it is necessary to stimulate the economy people believe it, because they repeat this lie often enough.

Winking George coin

People actually get confused and think that an inflating currency equals creation of underlying value. Only production gives underlying value. And inflating currency just benefits the people who are able to counterfeit the currency at the expense of the people who don’t get to do so. Now it is great to see that more and more people are waking up to this fundamental issue which controls their lives and a few politicians are now looking at dismantling the system. But really the vast majority of Americans are cut up chasing after side political issues and they follow politicians that are sold out to the entities who control our financial system. And unless a politician is really focused on getting rid of the central bank and reforming fractional reserve lending then that politician either doesn’t understand how the financial system works or more likely they are sold out to the financial entities which have control.

Personally I do not hold too much hope for a political reform. I think that what is more likely to happen is that the system will simply collaps under its own weight, as it very often does, because fractional reserve lending and central banking require constant growth. And when you get to an issue like peak oil and the decline of european and US manifacturing as their jobs are transferred to China suddenly you do not have fundamental growth in the economy anymore. There is nothing to take up all that inflation that is created.

Now the people that are counterfeiting money will always try to delay the currency collapse, where its the banking industry or a dictatorship. But ultimately this eventually leads to a currency collapse unless they can maintain such a rigid control over people’s lives that people have no freedom to protect their wealth. Another option is to have another country intervene – like the USA did for the Japanese Yen and it prevented its collaps in the 90s. People however always find a way around this, whenever there is a sustained downturn in the economy for years and years this always leads to a currency collapse. You cannot find an example where there has been deflation in the long term. This is simply not possible when there is at least one entity that constantly counterfeits money.

So at least by understanding how the system works, even if there is no political reform you can protect your self and the hardest thing to do is really just overtime a lifetime of conditioning where you have been taught that this paper currency baked by nothing has value. It does not have any fundamental value and it is being counterfeited at an outrageous rate currently to try to stay off the collapse. The faster you can overcome the life time of conditioning, the sooner you will start transferring your paper currency into something that actually retains value.

Wish you all success!