Who owns the Federal reserve? You are about to learn one of the biggest secrets in the history of the world, it’s a secret that has huge effects for everyone who lives on this planet. Most people can feel deep down that something isn’t quite right with the world economy, but few know what it is.
Gone are the days where a family can survive on just one pay check, every day it seems that things are more and more out of control, yet only one in a million understands why. You are about to discover the system that is ultimately responsible for most of the economic problems and inequality in our society today.
The Deep State doesn’t want you to know about this, as this system is what has kept them at the top of the financial food-chain for at least the last 110 years. Learning this will change your life because it will change the choices that you make. If enough people learn it, it will change the world, because it will change the system. For this is the biggest Hidden Secret of Money. Never in human history have so many been plundered by so few, and it’s all accomplished through this; the biggest scam in the history of mankind.
The destruction of modern society
The basic idea is that Central Banks will keep interest rates lower than anyone can imagine, for longer than anyone can imagine; and that will cause asset prices to soar. That includes stocks, as well as real estate and precious metals. However, to camouflage the devaluing progress of specifically the US dollar as the reserve currency, but also all other paper currencies. The price of precious metals is artificially manipulated downwards, whatever the demand might be. And this is the reason that after the high of 2011, gold never has reached or surpassed that level again, it should have been shot-up to US$ 50.000 per ounce under today’s circumstances.
Even worse, they inflict an enormous credit inflation, as result of the growths in the money supply. Whereby, price increases are delayed and uneven, due to the Cantillon Effect, as early receivers of the new money are able to purchase goods and services at existing prices. Later receivers, or those who do not receive the new money at all suffer higher prices and a decrease in their standard of living. Even so, most people do not link higher retail prices with a previous expansion of the money supply. It would be hard to invent a more effective method for the destruction of modern society.
A better understandable version of the Cantillon Effect was observed in German concentration camps. Victims reported that those who were close to the kitchen were more likely to survive. The food often ran out before it reached those who worked in the fields and forests.
Richard Cantillon, was an associate of John Law, the world’s first, fully modern central banker; he introduced more than two centuries ago the Cantillon Effect; namely giving out the new money to the politically favoured groups closest to the central banks. It undermines faith in the entire financial system, past and present. Suddenly, people don’t know what they’re worth; The auto parts distributor who worked his whole life, saved a million dollars and put it in a savings account at the bank, now finds his neighbour banker, who speculated on banking shares is worth twice as much as he is. He looks ahead; he wonders what will happen next.
More specific; You work all your life, and you are worth, say, $1 million. Then the Central Bank prints up $40,000 million, or more per month, just like that. It then gives the new money to the people who are close to them, the banks that are bailed-out, the other banks or people who speculate in stocks, in short it is the individual who makes campaign contributions, or the manufacturers with Deep State contracts that make weaponries, etc.
“The insiders – that are the rich and the well connected – get the money first. They compete for goods and services with it, just as though it was as good as the old money. By the time it reaches the labouring classes, however, this new money has been greatly discounted in purchasing power, eventually, to the point where it is worthless.
Now, we have the central banks running their printing presses – effectively giving money to their crony friends in the banking industry. From there, it seeps into the whole financial community, boosting prices for financial assets and real estate, which are owned by, the top 10%.
Central banks provide cheap money to banks, the cheap money artificially inflate asset prices; as falsely inflated asset prices make anyone connected to those assets rich. Today’s economy is exclusively for pre-informed speculators, as only the mob connected can achieve riches at everyone else’s expense. In this process, many awake have now realised what has happened and are understandably enraged. – Those people hate bankers. And for good reason: They have been cheating. They are insiders who are benefiting most from the Central Banks’ foolish money printing.
If the bankers had gotten what they deserved, instead of getting bail-outs, options and bonuses, they would have gone broke. Then we’d see what they were really worth. They could have picked up the pieces, creating new and better financial companies. And today, the world would be wiser with more honest bankers, and better service providing banks too. In short, the world over, there would have been a far more honest financial system.
Every government that has used paper money has succumbed to a fatal level of borrowing. Rather than the restructuring of these debts, paper money systems allow for the rapid expansion of the monetary base to facilitate paying off debts in devalued money.
This is no different than stealing. And yet, that is what happens all the time, resulting in a massive crisis and a breakdown of social norms.
The insanity of negative interest rates
A negative nominal interest rate is impossible, meaning a negative rate before accounting for inflation, implies a weird world, a world that cannot really exist.
To lend at less than zero suggests they believe the present value of money is less than its future value, in other words, deflation, under the assumption that the risk of default or inflation is near zero.
This allows governments to build roads or pay pensions with money that cost them less than nothing. How long will this last? – Yet as long rates remain below zero, money is not just free, but actually it’s a cost not to borrow!
To demonstrate the mischief: Imagine you are buying a house. If lenders are willing to grant a loan at a negative nominal interest rate that’s secured by nothing more than the full faith and credit of the government, then lenders should surely be willing to extend credit to you against the value of your house. That would leave you with a curious mortgage – one that pays you interest. At the rate of minus 0.023%, a €1-million house mortgage would come with an extra income of about €19 a month.
This raises profound metaphysical issues. If a mortgage carries negative interest, it implies that the house, or an equal capital value, has a negative value. After all, the lender has to pay someone to live in the house. And if houses are worth less than nothing, wonder what a car is worth, or a diamond ring, or a luxury cruise? Does it mean that money has no value? Or even negative value?
So, it can no longer be given to someone in exchange for a positive interest payment. He then must be paid to storing it for you! And if money has no value, what happens when you hire, a gardener to pull out weeds? Should you pay him? Or should he pay you? How many hours should he has to work for you before you consent to take his money?
The whole thing is so contrary to nature so bizarre when you think of it.
Conclusion: This is the craziest world ever; we live in today!
Todays “New Socialism” has spread like a cancer throughout the system, afflicting industry after industry. Like a cancer, once it infects an industry, it spreads from company to company in that sector. Suddenly, businesses cannot function without massive government aid. These corporate wards of the State weigh down the rest of the economy; making them weaker and less competitive and dragging them further into debt.
“Socialism always destroys the poor because it robs them of social mobility and makes it impossible for them to protect themselves from the predations of the powerful. Historically, its damage has been limited because eventually socialism disrupts an economy that even the rich and the powerful let suffer. That’s what’s so dangerous about this New Socialism. It doesn’t subject the rich to any depravation at all. It does just the opposite. The New Socialism retains the profit motive for the rich and the well connected. In this new model, only the poor suffer. The rich are always protected.”
New socialism is capitalism for the rich, without any risk, and socialism for the poor, without any rights. – Money talks; politicians have an acute sense of hearing. Besides, the rich didn’t get to be so rich entirely by their own efforts; these same “politicians” helped them greatly.
Gina Rinehart, the richest woman on Earth, can tell the poor that they need to “stop drinking, stop smoking, and work harder.” “It’s not only a convenient myth, it’s also a useful one. Earning money, the old-fashioned, honest way is still your best bet, unless you’ve got the government or the central bank in your pocket.”
Valuable reserves are the foundation of any stable currency
And as this chaos starts the plan is to turn the IMF into a kind of super central bank; with lots of “international reserve assets” – SDRs (Special Drawing Rights) – that it can hand out to any country that seems to need them. Don’t ask too many questions. To put into simple words: The new world’s money system would be based on paper money again and managed by global bureaucrats. You’ll see immediately that it is a hopeless proposal; a super bank run by super economists, that won’t last long, it will blow up the whole world’s financial system. Any system based on paper, like the current one will blow up anyway. No paper-money system has ever survived a full credit cycle, because paper money – a form of primitive, credit-backed money – is without any discipline unlimited. That – and not a lack of international monetary reform – is why there are so many bubbles now.
The foundation of any stable currency is valuable reserves. Especially in today’s uncertain times, it is for the future of any currency of crucial importance that the gold reserves are taken care of. Therefore, the national wealth can be secured even in tough times.
The Central Banks drenched the economy with free fake money — $3.6 trillion from their quantitative easing (QE) program, and more than $10 trillion in new government debt. With that kind of monetary firepower, one would think there would be a hell of a recovery. Instead, the recovery – 2007 till 2018 – added only 19.28% to real GDP, which was less than the 19.89% added in the 10 years during the Great Depression, following the Crash of 1929. Think about it!
Free money is a scam in a scam, being a scam as explained above. The longer it goes on, the more unstable the whole society becomes, the more unfair it seems, and the more radical reforms are necessary.
So far, most of the new money has gone predominantly to the Deep State cronies in Government and financial institutions, and into the pockets of the rich. In 1965, the top 10% of the population got 35% of national income. Last year, it got 50%. Why? The rich buy stocks and bonds. Then, the Central Banks — using its new money – buys their assets from them at higher prices. What do you think of that?
This leaves 90% of the population feeling left out and cheated. They protest, and then they vote for the ones that promise to Make America Great Again, or the “liberals” who promise to right the wrongs of capitalism, which is pure BS.
However, America and the rest of the world won’t be made great again, until the real wrongs – perpetual war and perpetual fake-money inflation – are corrected. And these wrongs are not committed by capitalists, or by the Russians, Chinese, Venezuelans, or Iranians. These wrong are committed by the central planners, the central banks, the governments, the politicians, bureaucrats, lobbyists, cronies and other Deep State operatives, that are their enablers. For this reason, draining the swamp, is urgently necessary.
Since this article contains valuable information regarding the well-being of everyone, share this article with others. FWC-articles are now read and listened to worldwide through various channels and in many languages. There are at least a million awakened people who have become frequent FWC-followers. Help increase this awareness by sharing it. – Reproduction in any language is permitted under the condition of source acknowledgement.