The Truth Behind Our Banking System
Most people don’t really understand the truth behind our banking system because it isn’t taught in our schools, not even to financial professionals. Oddly enough, the inconvenient history is omitted from all educational curriculums. I obtained a business degree in finance and there was one thing that never was taught to me about the origins of our banking system that I believe is key to the state of our banking system and our economy today. It is the fact that it was created under cover of legislation that was supposed to protect the economy and stabilize it. That is the primary mission of the Federal Reserve Bank. However, the real motivation was to shield the owners of the banks from competition and create a cartel.
People believe that the financial crisis is somewhat of a mystery. But every financial crisis we have had since the Federal Reserve Banking System has been in place has been related to debt. Under the current system, debt is used to create new money or to shrink the supply of money (by paying debt off) to attempt to control the economy, and allegedly stabilize it. In reality, since the loans were made with money created from nothing, the bank loses very little money. It is money that it never had in the first place.
There is a rich history of how the banking bailout system has spread throughout the world and has been leading us to larger and larger central banks such as the Federal Reserve Bank. Each failed central bank must be bailed out when it fails due to the over use of debt to manage the currency. It is destined to happen to the Federal Reserve Bank if something isn’t done to correct our current course. When our central bank fails, individuals do best to protect themselves by owning hard assets that go up in price with inflation, so that the buying power of that wealth can be preserved. This is important to keep in mind as we watch how the “Lending Crisis of 2008″ unfolds into the eventual cyclical recovery. Will our currency survive for another cycle? If so, we may only be one more step away from a new currency to start the cycle of inflation all over again. Will the Federal Reserve Bank survive? Will it expand, or will it be absorbed by another central bank?
Tags: banking system, central bank, economy, financial professionals, Lending Crisis, Reserve Bank