Banks are lent vast sums of money by central banks at near-zero interest.They lend that money to us or back to the government at higher rates and rake in the difference by the billion.#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging By allowing a centralized authority such as the Federal Reserve to dictate interest rates, it creates an environment where financial bubbles can be created very easily.Over the past several decades, we have seen bubble after bubble.We do not know how much of the system each bank owns, because that has never been disclosed to the American people. That is 454 billion dollars that was taken out of our pockets and put into the pockets of wealthy individuals and foreign governments around the globe. For example, Thomas Edison was once quoted in the New York Times as saying the following…. He thinks it is stupid, and so do I, that for the loan of ,000,000 of their own money the people of the United States should be compelled to pay ,000,000 — that is what it amounts to, with interest.The Federal Reserve openly admits that it is privately owned. The truth is that our current debt-based monetary system was designed by greedy bankers that wanted to make enormous profits by using the Federal Reserve as a tool to create money out of thin air and lend it to the U. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. In all our great bond issues the interest is always greater than the principal.Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. #5 The Federal Reserve Is Paying Banks Not To Lend Money Did you know that the Federal Reserve is actually paying banks not to make loans? Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U. Unfortunately, the Federal Reserve is not working for us. Sadly, most Americans have no idea what is going on.According to the GAO, the Federal Reserve shelled out an astounding 9.4 million in “fees” to the very financial institutions which caused the financial crisis in the first place. Another example of this is the government debt carry trade. The Federal Reserve lends gigantic piles of nearly interest-free cash to the big Wall Street banks, and in turn those banks use the money to buy up huge amounts of government debt.
The Federal Reserve has more power over the performance of the U. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs.But they are the biggest scroungers of public money of our time.When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was “not an agency” of the federal government and therefore not subject to the Freedom of Information Act. There are lots of people out there that have made a ton of money by holding U. All of the great public works cost more than twice the actual cost, on that account. Today, it is more than more than 5000 times larger. dollar has lost 96.2 percent of its value since 1900?In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website…. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost. On July 1, 1914 (a few months after the Fed was created) the U. Yes, the perpetual debt machine is working quite well, and most Americans do not even realize what is happening. Of course almost all of that decline has happened since the Federal Reserve was created in 1913.