Who caused the Great Depression? The Illuminati!

For some of my blogs, I will be summarizing documentaries that make us think in a new way about politics: You won’t learn this stuff in university! This summary is Money Masters. You can find the full video on YouTube and if you want to buy it (which I encourage!), you can obtain the ordering information at the end of the video.

 

The Federal Reserve is the United States central bank. It is not for the people; it is privately owned and makes the small group of central bankers who own it rich beyond belief at the expense of the people. The Federal Reserve controls the U.S. Economy; it is not the politicians. So Barack Obama and Mitt Romney are alike in this regard; they have no control.

 

Over the history of the republic, leaders like Abraham Lincoln have known what the money masters are up to. The Reserve, as the video states, determines what the average person’s house or car payment is going to be. The Founding Fathers knew the dangers of a privately owned central bank. There is no system of checks and balances; there is no accountability, and there is no transparency.

 

An important economic concept that comes up in this video is fractional reserve banking. This occurs when a bank lends money that it does not have at interest rates ten times the original amount. Every American bank can do this. It would be illegal for a private citizen to do this. Henry I tried to take power away from the money changers by creating a currency that was based on talley sticks. It lasted from 1100 to 1826 AD. However, the creation of the Bank of England in 1694 was a major victory for the money changers.

 

What caused the Great Depression? What caused the American Revolution? What caused the Russian Revolution? World War I? World War II? The Civil War? The desire for these money changers to maintain the power they enjoyed. Andrew Jackson in, the 1830s, had seen the damage the central bank could impose on America. He said that such a thing was more dangerous than a powerful military enemy.

 

Abraham Lincoln was a patriot who created greenbacks as the primary American currency. However, the 1994 Regal Act took greenbacks out of circulation. What about the gold standard as currency? This is a bad idea because so much gold is controlled by foreign powers. Silver would be better because it is scarce and that means less control for the central bankers.

 

The central bankers want a debt-based system because it makes them money. What makes debt? Warfare, and that is why the central bankers are behind so many of the world’s wars. One year after the 1913 creation of the Federal Reserve in the United States, World War I broke out. Central bankers profited from financing both sides.

 

Franklin D. Roosevelt in the 1930s confiscated gold held by the American public, although he would not admit to it. People were threatened with 10-year prison sentences if they kept their gold. They were reimbursed $20.66 per ounce. The central bankers were at it again, trying to control the supply of money so that they could enhance their wealth.

 

Why can’t America get out from under so much debt? The video states that the answer is that money is created by sale of U.S. bonds. When the Federal Reserve wants to create more money, it creates it out of nothing. They take advantage of the fractional reserve principle. Banks don’t create currency; they do, however, create money by making new loans. And they invest this privately created money to buy U.S. Bonds, which provides the bankers with enormous amounts of interest.

 

How can the U.S. solve the current economic problem that they have? Under President Obama, the debt has risen to over 16 trillion dollars. A solution is to pay off U.S. bonds with debt free U.S. notes just like Lincoln issued (greenbacks). This would create inflation because of the fractional reserve principle. However, this is Milton Friedman’s solution: As Treasury buys bonds, it can proportionately raise reserve requirements to keep the money supply stable. Once U.S. bonds are replaced by US notes, the problems created by the fractional reserve will disappear. This would take one or two years, but the proportionate raising of reserve requirements would successfully get rid of the problem of inflation/deflation that would normally happen.

 

 

 

 

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