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  Money is a Drug Too...

Most people think bankers are in the business of lending money. These are many of the same people that think the McDonalds corporation is in the business of making hamburgers. Contrary to appearances, both are in the real estate business. McDonalds sells hamburgers so it can acquire prime real estate and service the taxes/debt connected therewith. As a result, McDonalds is now the largest real estate owner on the planet. But covertly the Federal Reserve Banks are actually far larger because every house you see, every store, every shopping mall, every skyscraper, every building across the country and world (with the exception of a small percent) has a second lien on it held by a Federal Reserve-member bank. The banks, after the tax man, collectively prey on this real estate. One way is when a borrower defaults, a Fed member-bank takes possession of the real estate. As mentioned above, the important thing to realize is this: The real estate is a REAL ASSET but the loan the bank made to purchase it was NOT REAL. The money the member-bank lends you to buy your house is completely unbacked by any tangible asset, hence its value is only a matter of opinion and ignorance. The value of Federal Reserve Notes ONLY depends on the fact that enough suckers will continue to accept them as "money." If the suckers think that they are "only slowly inflating" and that that's "good," even "healthy" -- all the better. The public has been indoctrinated into thinking this way for years as well as into thinking that real estate is "appreciating" in value because of the "increase in population."(2) Thus this real inflation, caused by population demand, is conveniently commingled with the Fed-generated inflation to keep the public confused and ignorant about cause.(3)

Again, the bank created the money (those Federal Reserve Notes) out of literally nothing. Whereas your house was created from the day-to-day work of many people. The money is totally fiction: an Authur Andersen-type accounting slight-of-hand. The house is real brick and wood, tile and ceramic, glass and metal, all put together with skill and sweat. So when the Fed-banks are able to whipsaw the economy up and down through the "business cycle," it's inevitable that a significant number of people will also be whipsawed out of their jobs and thus default on their Fed-bank mortgage payments. And this is exactly what the Fed-banks want because they then get to repossess millions of houses, REAL assets, and assimilate them into their empire's balance sheet. Also, when the stock market crashes, much, if not all of that money floods into the banking system (in the short-term, if not the medium-term) to replenish its balance sheets and to provide fresh new FRACTIONAL money for the next round of home loan suckers. Of course, the banks put on the PR front that "we're not in the real estate business" or "it's a big hassle to repossess and liquidate real estate," or "the stock market's a bubble waiting to burst," et cetera ad nausium, but that's all horse.(4)

So, in a nut shell, the banks are really in the business of a) lending bogus fiat money (called Federal Reserve Notes) through fractional reserve banking, b) manipulating the economy (known as "monetary policy") into boom and bust cycles (known as the "business cycle") and c) confiscating real assets (repossessing real estate) from the civilization.

This slow, but insidious, process takes place over decades of not centuries. Thus the REASON, Greenspam and his cronies keep inflation "low" is to avoid setting off alarms, yet they bleed the society a little bit over a long term. And this is okay with many. Indeed, as demonstrated by several posters here, the indoctrination has been so thorough, such feel inflation is even "good." But look at the graph at http://www.mecfilms.com/inflate.htm and you will be able to see the long-term corrosive effects of inflation since 1913, the year the Federal Reserve System AND the IRS (the Fed's private collection agency), were foisted upon the American People (several days before Congress took Christmas recess) with the passage of the Glass-Owen Act (which was nothing more than a re-worked version of the bankers' Aldrich Bill).

As Albert Einstein would undoubtedly say in order to be consistent: "COMPOUND INFLATION is just as powerful as COMPOUNT INTEREST." And when one is in control of printing up the money, they don't have to worry about the effects of dilution (compound inflation) so long as they are in a position to a) spend each new round of cash FIRST and b) extort real assets from the public and onto their balance sheets through repossession (and other techniques).

Thus, so long as people remain ignorant of how banking really works and the effects it has on their Lives & World, they will never (be able to) create a world economy where there is plenty for all and prices eventually decline to zero -- due to robust abundance from powerful and efficient global industries that WOULD develop were they allowed(5). Such a world, as we are currently in, has as its calculaic limit infinite prices, infinitely worthless money and less than 1-percent of the population eventually owning ALL of the assets AND means of production of the world. We are currently cruising in this direction, the direction of a world slave-state, a high-tech totalitarian civilization.

A possible remedy, not necessarily in this order, is:

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  The article Money is a Drug Too is written by James Jaeger. More information can be found at one of his many websites.

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