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The Federal Reserve Created This Financial Mess And Now They Expect Us To Pay Higher Taxes And Have A Lower Standard Of Living So We Can Pay Interest To Them

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When you watch the mainstream news, how often do you hear them identify the Federal Reserve as the ultimate source of all of our financial problems?  Never?  Well, there is a good reason.  The Federal Reserve was created and continues to benefit the elite international bankers that are raping the United States blind financially.  Many of the same financial powers own large interests in the 6 gigantic media companies that dominate U.S. mainstream media.  So you won’t hear the truth from them.  On this website we go on and on about how bad the U.S. national debt is.  And it is really, really, really bad.  But rarely do you hear from anyone who we owe all of this money to.  Yeah, we owe large amounts to Japan and China and a bunch of other nations, but the biggest holder of our debt by far is the Federal Reserve.  Just like the owner of your mortgage or your car loan, they expect to be paid back – with interest.   

Now U.S. Federal Reserve Chairman Ben Bernanke is warning that the U.S. national debt could balloon to more than 100% of GDP by the year 2020.  For those familiar with national debt statistics, that is a very, very dangerous threshold to cross.  Basically the United States is in debt up to its eyeballs and the debt continues to grow at an exponential rate.

So what is the solution?

Well, according to Bernanke, United States citizens will soon have to make difficult choices between higher taxes and reduced social spending. 

Perhaps both. 

The truth is that either alternative will slow down the U.S. economy and will reduce our standard of living, but this is the situation that we have gotten ourselves into.

And we have got to service that gigantic debt that we owe to the Federal Reserve (among others).

In fact, a whole lot of government officials are talking about taxes these days.

And not about lowering them.

Some administration officials are floating the idea of a national sales tax and others are openly discussing adopting a European-style “value-added” tax.

Any way that they can drain more money out of us sounds good to them.

In fact, members of Barack Obama’s “fiscal reform commission” say that higher taxes must be considered as a way to handle the U.S. government’s mounting debt problem.

Of course they could just stop wasting trillions of dollars, but apparently that is too hard.

And so where will all of these new taxes go?

To managing our colossal debt of course.

The truth is that we have locked generations of Americans into debt slavery.

We have piled up the biggest mountain of debt in the history of the world, and our children and grandchildren will spend all of their lives trying to pay interest on it.

Haven’t we left them with such a wonderful legacy?

If you don’t understand who the Federal Reserve is or what they are doing to us, please watch the excellent 4 minute video below.  It does a great job of introducing people to the rotten core at the center of the U.S. financial system.  We encourage you to send this video out to as many of your friends and family as possible.  Perhaps if there is a mass awakening, Americans can elect politicians that will shut down the Fed and will reclaim America’s financial destiny….

  • Lunatic Fringe

    Bernanke’s scenario is actually far rosier than reality. We have 13 trillion is debt financed at incredibly low rates. Refinancing that debt at future and higher levels is a certainty.

    We have 45 to 50 trillion in entitlements due in the greatest Ponzi scheme ever concocted, SS.

    The FED will never be audited. To audit the Fed would be to expose fractional banking gone berserk. 100-1 ratios would be the bottom. If the Fed were ever truly audited, we’d find that they are loaning money that they don’t have and which has never existed. It would be the greatest fraud of all time. It would be collapse. Truly.

  • Joe

    From day ONE when Greenspan was put in charge of the Federal Reserve I said that was the biggest mistake, he is the one with his policies that put us where we are today.
    Towards the end of his term he was doing “Insider Trading” make investments based on the decision that he was going to make at a meeting.
    Greenspan enriched himself at the expense of Americans.

  • Jorge

    President John F. Kennedy wanted to shut down the Fed and had a plan to do so, and look what happened to him. Don’t kid yourself: anyone who manages to get into office and who can actually DO something to shut down or abolish the Fed will be taken OUT.

    Our present course will continue without end until the country is a smoking ruin. It’s far too late to prevent that outcome now.

  • John Merryman

    Gold isn’t the solution. The problem is that we have a debt based currency, so there is an overwhelming need to create debt. A good example is government spending. The current system is designed to overspend by buying votes for enormous bills that can only be passed or vetoed. This serves to create debt in order to store capital, as government debt is the primary investment vehicle. In the spirit of actual budgeting, a possible solution would be to break the spending bills down to their constituent items and have every legislator assign a percentage value to each item and then re-assemble them in order of preference. The president would draw the line at what would be funded. This would divide responsibility, allowing the legislature to prioritize, while giving the president final authority over total spending. Since making the cut would be graded on a curve, there would be much less incentive to trade favors and the percentage system would allow legislators to fine tune their granting of favors to other legislators and lobbyists.

    The fact is that money is drawing rights to community productivity and so its real value is based on total tradable production. Historically this would be very hard to quantify, which is why debt was a useful basis for the money supply. Now that limit has been destroyed by the removal of loan standards and the creation of an enormous circulation bubble, we will have to develop a new basis for the currency and unless we are will to return to the 19th century, it isn’t gold. Now this isn’t to say anyone who wants to can’t just go out and buy gold, but then they have to sell it to spend it. Historically it ends up in the local bank and gold certificates get issued and traded around and eventually watered down and the whole process starts again.

    Politicians have never been very successful at controlling money either, as they naturally tend to inflate it, as opposed to the bankers overextending credit and buying up assets in the inevitable credit collapse and resulting inflation.

    Currently we do have a publicly backed currency, but one managed by a private banking system. If the currency is a public trust, shouldn’t the public also gain the rewards of its management? There was a time when political power was a form of private enterprise, eventually institutionalized as monarchy. Even though monarchists railed against mob rule, we have managed to make political power a public trust by pushing power down to the levels it is most responsive and creating feedback loops between the local, regional and national levels. A public banking system would have to be modeled similarly. Have local credit unions as the foundation. These would invest local deposits in local businesses and use the profits to fund local services. This ground level banking would then be the foundation for regional consortiums for larger projects and these mid level institutions would be the board for a national bank that would issue the currency.

    There is another factor to the fact that government is responsible for the money. It makes money a form of public utility, or commons. One of the things that destroys monetary systems is an excess of currency, far above the productive capacity of the economy. By the Federal Reserve’s very own logic of selling bonds to reduce the surplus of money, if there is a surplus of currency in the system, it is in the hands of those with a surplus of wealth. Obviously this is not a politically viable fact, so it is fudged over by everyone concerned. If though, we did begin to treat money as the form of commons it so manifestly is, there would be both social and civil limits on how much currency one could accumulate. The fact is that there is a effectively very similar public medium in our road system. You own your car, house, business, etc. but not the roads connecting them and no one cries socialism over that. If people understood monetary value constituted a form of public commons, they would be very careful what value they drained from social relations and environmental resources to convert into money in the first place. We all like having roads, but there is little inclination to pave more than we must. If we were to treat money with the same care, it would be healthy for society, the environment and the monetary system. The economy might be a bit slower, but far more sustainable.

    It really is a small planet and we should leave something for the kids.

  • Lenny Pike

    The following pertains to the Federal Reserve because everything that the ruling elite and the government do is not possible without the consent of the people behind the Federal Reserve who they are subservient to. In the morning of April 16, the day after tax day which also had a lot of media coverage of the Tea Party protests, it is announced that there has been a huge crackdown by ICE on human trafficking of illegal aliens. The huge size of the claimed crackdown is suspicious unless they have a lot more agents than what I thought. In the afternoon it is announced that the SEC is going to investigate Goldman Sacs which was the most unbelievable thing I have ever heard since Goldman Sacs is the U.S. Government. If that is true, then The President has a lot of courage especially with all of the ex-Goldman employees he has working in his administration. It is not yet evening but I would bet there will be an announcement that all corporations who transfered American manufacturing overseas or imported foreign workers are going to be prosecuted. They are nervous about the fall elections and are playing us for the suckers that we have always been. It has always worked before and if it does not work this time their only other option which they would prefer not to have to do would be either to fix the elections, or create an emergency as an excuse to postpone or eliminate them all together in the future.

  • john brefeld

    Dr. Schoon is correct. It a nutshell he says it will eventually come crashing down and the powerful elite will fall with it. People will barter and use blackmarket tools before they pay more taxes by the way. Gold will eventually be the key to restoring order after the chaos. Turk’s e-gold is already in place. All we can do is wait but thankfully it won’t be that long. Greed has a way of coming back at you in a hurry!

  • Northpal

    John Merryman you sound like the typical liberal educated fools that have destroyed this country. The constitution states the authority and medium of the money supply. Andrew Jackson finally got rid of central banking till we fell to the Bankers via the civil war. 1871 the official usurpation by the Babylonian system cloaked in the new form of corporatism. Since then the Republic has been incrementally taken apart. You are no longer a sovereign but a 14th amendment citizen and chattel of the United States Corp.

  • RobertM

    @”….But rarely do you hear from anyone who we owe all of this money to. Yeah, we owe large amounts to Japan and China and a bunch of other nations….”

    And where did their money come from? Out of thin air from their central bank! This coming austerity is just so unnecessary.

  • duggy dugg

    jorge is right on the mark! not only did jfk oppose private central banking ; so did lincoln garfield and mckinley ; all shot , arguably by agents of the owners of the central banks [megga banksters ]

  • duggy dugg

    i forgot andrew jackson ; richard lawrence tried to shoot him with flintlocks which malfunctiond ; not reliable as today’s cartridge pistols ; lawrence later bragged he was an agent of the red shield bank dynasty .

  • duggy dugg

    merryman ; the fed and government borrowing are the problem ;
    dismantle the fed and government can create its own money causing no debt to be added to the national debt ; when the private “central” bank creates money , it is loaned to us [our government] plus vig ; interest demand !

    because of the hellish fed , we are in debt over our heads ! ! $13 trillion ! ! ! !

  • Jeanette

    Money,, the root of all evil. It is really sad that noone can stop these evil and heartless banksters, government and the fed. We have been lied to for many years and still today. The recession is not over and see things getting worse. They say its improving, to make you believe, so they can raise your taxes!!
    We need to ALL stand up to the evil empire!!

  • Bernard

    This website is a libertarian conspiracy machine designed for only one purpose and that is to instill irrational fear.

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