Billions in Interest Owed to Private Banks
We shall start with the need for money. The Federal Government, having spent
more than it has taken from its citizens in taxes, needs, for the sake of illustration,
$1,000,000,000. Since it does not have the money, and Congress has given away
its authority to "create" it, the Government must go to the "creators" for
the $1 billion.
But, the Federal Reserve, a private corporation, does not just give its money
away! The Bankers are willing to deliver $1,000,000,000 in money or credit
to the Federal Government in exchange for the government's agreement to pay
it back -- with interest. So Congress authorizes the Treasury Department to
print $1,000,000,000 in U.S. Bonds, which are then delivered to the Federal
The Federal Reserve then pays the cost of printing the $1 billion (about $1,000)
and makes the exchange. The government then uses the money to pay its obligations.
What are the results of this fantastic transaction? Well, $1 billion in government
bills are paid all right, but the Government has now indebted the people to
the bankers for $1 billion on which the people must pay interest!
Tens of thousands of such transactions have taken place since 1913 so that
in 1996, the U.S. Government is indebted to the Bankers for more than $5,000,000,000,000
(trillion). Most of the income taxes that we pay as individuals now goes straight
into the hands of the bankers, just to pay off the interest alone, with no
hope of ever paying off the principle. Our children will be forced into servitude.
But wait! There's more!
You say, "This is terrible!" Yes, it
is, but we have shown only part of the sordid story. Under this unholy
system, those United States Bonds have now become "assets" of
the banks in the Reserve System which they then use as "reserves" to "create" more "credit" to
lend. Current "reserve" requirements allow them to use
that $1 billion in bonds to "create" as much as $15 billion
in new "credit" to lend to states, municipalities, to individuals
Added to the original $1 billion, they could have $16 billion of "created
credit" out in loans paying them interest with their only cost being $1,000
for printing the original $1 billion! Since the U.S. Congress has not issued
Constitutional money since 1863 (more than 100 years), in order for the people
to have money to carry on trade and commerce they are forced to borrow the "created
credit" of the Monopoly bankers and pay them usury-interest!
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