So what replaced the system that the founding fathers originally intended? In 1913, the passage of the Federal Reserve Act granting the Federal Reserve the legal authority to issue Federal Reserve Notes. When President Wilson signed the bill, he declared it the “first of a series of constructive acts to aid business”. In fact the only business it aided was that of the private banks. The system was designed from its inception to ensure that every dollar that came into existence had to be borrowed from this private cartel of banks called the Federal Reserve.
So what most people also do not know is that every single dollar in circulation has to be borrowed by somebody. In other words, the entire money supply is DEBT BASED and someone is paying interest on that debt to the private bankers. In fact the total cost for 2012 for just servicing the interest on the U.S. government debt was an astounding $359 billion and $454 billion the year before. The interest on our debt for those two years exceeds the entire stimulus bill of 2009. Think of what we could do with that much money every year: transportation, healthcare, modernizing the electric grid, education, research, are just a few examples that quickly come to mind.
It becomes very easy to see that the ability to collect interest on the national debt involves huge sums of money being paid out to those with the power to create our money and that these people will do almost anything to make sure that things remain exactly as they are. That is why they encourage their corporate controlled media to ridicule the $trillion coin idea as something out of a fantasy tale, or having the talking heads echoing that investors will be spooked, and broadcasting that the world will think that the U.S. has totally lost its marbles.
The question NOT being asked by the corporate media shills is that if the U.S. government can issue its own interest free money in the form of a $trillion coin, then why is it borrowing the money at interest instead?
One can therefore think of the idea of issuing a $trillion dollar coin as being equivalent to the idea of the government printing its own money. The philosophy and result are essentially the same.
Think about this: if you had the LEGAL right to print your own money would you:1. print your own money to pay your bills?
2. borrow money at interest from the private banks to pay your bills?
Of course any sane person would print their own money. Yet here we have the unimaginable stupidity of a government with the ability to print its own interest and debt free money. Instead chooses to borrow that money at interest. Astoundingly, the corporate controlled media is not asking why this practice continues.
It actually gets even worse. It costs the government 4 cents to print a bill of any denomination, for the paper, labor, ink equipment maintenance etc. It does not matter whether the bill is $1, $5, $20, or $100, the cost is the same. So if you were the one printing this legal money, the last 4 bills mentioned would have cost you 16 cents to print. Now can you imagine the totally absurd notion of you taking these 4 bills to your banker, selling it to them for the cost of printing (16 cents), and then borrowing it back at face value ($126) with interest charges? This is the height of lunacy, and yet this is exactly what our government does. The Treasury Dept prints the bills, delivers them to the Federal Reserve branch offices, charges them for the cost of printing, and then borrows this money back at face value with interest. Ask yourself why the corporate controlled media is not covering this story.
Henry Ford once wrote: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
The fatal flaw in our monetary system is that every dollar has to be borrowed into existence, then this money is extinguished once the loan is paid back. So there is a balance here? Wrong! If you borrow $1000, you add $1000 to the money supply. When you pay the loan back, you extinguish the $1000. The problem is where does the money to pay the interest come from? There is not enough money in circulation to repay both the principal and the interest. This lies at the very heart of our deficit problem. Someone has to borrow money into circulation to cover the costs of your interest payments. The amount of debt in our system must continue to grow in order to service the interest payments on the original debt. So the more the debt grows, the more interest payments needed, the more that must be borrowed to pay that interest, the more debt grows. The fact the U.S. is trillions in deficit is by design. In reality it is impossible to repay this debt. When you hear those clueless people talking about paying off the debt, it cannot be done. If we paid off the entire debt, we would have no money in circulation.
Pretty clever system these money masters have created for themselves, keeping the nation and its people in perpetual debt slavery and getting paid interest for something they created out of thin air, something they never owned, something the Constitution never gave them the right to do. The result of the unsustainability of our current system is that ultimately the amount of debt overhang will become so huge that the system will collapse in on itself. There are many including myself who believe that we are approaching that end point.