Why Don't They Just Keep Printing?

11 posts / 0 new
Last post
etsan's picture
etsan
Status: Bronze Member (Offline)
Joined: Apr 22 2009
Posts: 57
Why Don't They Just Keep Printing?

Hello and Happy New Year to Everyone,

So I've been reading and understanding that banksters (Fed Reserve) have been able to profit when war breaks out using the Rothschild Formula (e.g. financing both sides and receiving interest). This has been happening throughout the history of wars. The government of course has the Fed print out more money (e.g. treasury bonds) to fund the war. The people lose with the hidden tax of inflation while the Fed profits big time with the interest collected assuring that they are keeping the highest percentage of money flowing in the economy. My question is this: "why doesn't the Fed just secretly print out more money and keep it to themselves?" I mean inflation will grow the same way and war doesn't have to be involved. So why do they jump through loops or use war as a reason to get more money by collecting interest? I don't get it.

Thanks for your input.

jneo's picture
jneo
Status: Platinum Member (Offline)
Joined: Jan 7 2009
Posts: 742
Re: Why Don't They Just Keep Printing?

 

The FED probably already prints for itself.  They can create 1 trillion and no one would ever know.  

 

 

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Why Don't They Just Keep Printing?

The government of course has the Fed print out more money (e.g. treasury bonds) to fund the war.

1.  The government prints all the federal reserve notes.

2.  Treasury bonds are not money.

The people lose with the hidden tax of inflation while the Fed profits big time with the interest collected assuring that they are keeping the highest percentage of money flowing in the economy.

1.  Inflation isn't a hidden tax.  Interest on borrowed money is a hidden tax.

2.  The bulk majority of the Fed's profits are given to the U.S. Treasury.

My question is this: "why doesn't the Fed just secretly print out more money and keep it to themselves

1.  The Fed doesn't actually print any money what so ever.

2.  When the Fed creates money is simply makes an entry on it's books (numbers in a checking account on a computer).

3.  Who says they aren't creating money and giving it to themselves?  That is exactly what the owners of the Fed did with this last bail out right?

So why do they jump through loops or use war as a reason to get more money by collecting interest? I don't get it.

1.  If you could create all the money you ever wanted (just punch some numbers on a computer) would money be a controlling factor in your life?

2.  In my own personal experience in life men go after two things.  Money and Power.  Once you have all the money (heck they can create as much of it as they want to) you could ever dream of isn't the next thing power?

3.  The only thing you'll see this banking system get really excited about is when you don't want to use THEIR money.  100% of the money we use is 100% owned and controlled by a private banking system.  It's not about money to them, it's about power. And they only want to use that power to steal everything from everyone in one big gigantic ponzi scheme from the depths of hell.

4.  What is more sickening is that when you even mention getting away from using the very tool that drives all the poverty, poor living conditions, raping of the earths resources, the very people being screwed by this system do virtually nothing but defend it.  It's like having a man rob you of all your belongings, rape your wife(country), pay someone to kill your neighbors(wars), and then when someone says wait a minute!  Everyone in town only says he is just to powerful to stop him when the only way he gets all this power is because he (the banking system) has a monopoly over the creation of the money supply as interest bearing loans.

5.  Etsan.  I hope I wasn't to dry in my responses but it's refreshing to see someone ask a question on occasion instead of just rambling the banker propoganda of "to much money".  These people don't care about the money.  They care about the power that comes with creating 100% of the money as interest bearing loans as a tool for theft by deception and until the american people want to wake up and start learning the facts of how the monetary system functions things will only get worse until we as a people decide to have an honest money system that is only used to enhance fair and honest trading.

There are tools at our fingertips right now to ensure we can keep everything we have today and begin to prosper.  All we have to do is look past all the fluff and the spin that the banking system puts out and dig into the facts.  Unless you really want to lose everything you own to the banking system we really need to sit back and study how our monetary system functions and who it benifits.  Right now the monetary system only benifits the banking system.

 

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Why Don't They Just Keep Printing?

Hello all,

Thanks for this thread estan!  Great stuff Thomas - I always learn something from your posts.

JK121 wrote:

The FED probably already prints for itself.  They can create 1 trillion and no one would ever know.

JK, you make a very valid point - how would we know if the Fed was creating billions or trillions of dollars outside the system?  Along similar lines, banks are free to create money for their own accounts to invest as they see fit - it is perfectly legal.

This is totally unfair and dangerous to the rest of the economy.  It may also jeopardize a banks solvency if the investments don't pan out as planned.

Larry 

etsan's picture
etsan
Status: Bronze Member (Offline)
Joined: Apr 22 2009
Posts: 57
Re: Why Don't They Just Keep Printing?

thanks thomas for the information. i'm glad someone is able to explain it more clear. i'm just starting to understand the process so forgive me if i'm not clear in my posting. thanks for letting me know how it really works.

I mistype what I meant in my first sentence. I always thought that it was the government who decides to print treasury bonds (IOUs) when they need money, then the Fed gives money to the government to buy those bonds and the Fed gets interest on those bonds at a certain time frame. To pay back the interest the government uses our tax money. Also, since government is bailing out so many companies with all of this money created out of thin air, inflation is going to hurt us.

Is my assessement correct? I'm still learning so is this a correct assessement or am I not understanding it clearly? If anyone or thomas can let me know if this is correct or not, I would really appreciate it. Thanks.

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Why Don't They Just Keep Printing?

Etsan,

You're making me do my homework!  :)

I hope this helps to make it more clear.  I haven't ever really delved into trying to explain this stuff in detail so it may seem choppy coming from me because this is the first time......

Today the only creator of money is the banking system.  The bank creates the money when an individual, a business, a corporation or government goes to the banks and gets an interest-bearing loan.

"To create or manufacture the money, the bank simply makes a book-entry for the amount of the loan to a new or existing checking account.  The promissory note signed by the borrower increased the bank's assest; the book-entry to the checking account increases the bank's liabilities." - Modern Money Secrets Page 173

"A bank lends by adding the borrower's promise to repay to its loan assets and adding the amount of the loan to its deposit liabilities" - Source - Money: master or servant? Federal Reserve Bank of New York.

 

"To further explain how the system works, under the federally chartered banking system we will start at the point where the government wants to spend $100 more money than they brought in through taxes.  The Congress authorizes the Treasury to sell a bond (issues a promise to pay at interest) through the auctions held at the Federal Reserve Bank of New York.  A primary Bond Dealer buys the bond from the Treasury (agrees at accept the Treasury promise to pay at interest), the bond goes the books of the Treasury as a liabilty and it goes on the books of the Primary Bond Dealer as an asset.  To pay for the bond, the Primary Bond Dealer (usually a bank) creates new checkbook money on its books by adding a new liabilty to its books for $100."  Modern Money Secrets Page 178

 

This continues on for another 20 pages.......

The short end of the deal is that from what I understand is that the Fed is the lender of last resorts and that the government debt is not owed to the fed (don't accept this as fact because i'm still learning about all this stuff) but to private commercial banks (like j.p. morgan, chase, ect...Most if not all of the federally chartered banks).  In short those banks promise to pay customers for ....read this next quote.

The Federal Reserve System Purposes and Functions Third Edition.  "All bank deposits are a form of credit.  Basically, they represent amounts owed by banks to depositors.  They come into exsistance by an exchange of bank promises to pay customeres for the various assets whichs banks acquire--currency, promissory notes of business, consumer, and other customers, mortgages on real estate, and Government and other securities.".  Page 6

All the banks loan any of us is their "promise to pay".  What this statement doesn't say is that when the debt is repaid, that money gets written off the books and is extinguished.  Drkrbyluv "larry" is a good person to ask about this.  He's written some good stuff about this.

To pay back the interest the government uses our tax money.

Sadly, the interest is never created.  This is why the debt constanly grows because in order to pay the interest on borrowed money it has to come from somebody elses loaned principle.  Yes the government does use it's taxing authority to pay the bankers interest on their promise to pay us.......BUT the only way we can get any money to pay those taxes is for the government to go deeper into debt or for us to go to the local banks on our street corners and go into debt to them.  It's an unworkable system.  The government debt isn't the biggest problem in the system though, its the private debt (outnumbers the federal government debt close to 4 to 1).  Do you know anyone who has lost their business, house, farm, vehicle, or any other property to the government debt?  How can the government debt be the biggest problem when nobody is losing their property to the govnenment debt?  (I'm not saying govnernment debt is a good thing, I think the govnerment should create the money that is needed by the people to conduct their commerce needs instead of borrowing it from private banks who don't loan any tangile property and didn't have anything to loan to start with.

Also, since government is bailing out so many companies with all of this money created out of thin air, inflation is going to hurt us.

The funny thing is because the government creates no money, and the people didn't have the money to tax away from them, the only place the government could get the money to bail out the banks is to go and get a loan from the very banks that were crying for a bail out when banks are the only ones who can create money under our current system.  I'll leave the inflation comment alone for right now.  I hope the rest of this helps.

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Debt free notes

Great thread you guys have going here.

I have a question: I know that Lincoln issued the Greenback as a debt free note and it apparently worked well. I also heard that JFK was in the process of creating a debt free note. Can anyone enlighten me about this subject? What are examples of debt free notes? Do they work? Etc...

I would love to hear some feedback on this topic.

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Why Don't They Just Keep Printing?

I know that Lincoln issued the Greenback as a debt free note and it apparently worked well.

The Lincoln green back was note debt free.  It was issued as a liability of the issuer(government) but not as a liability of the user.  It did work well because it circulated as an assett to the people that they did not have to borrow into exsistance.

What are examples of debt free notes?

There is no such thing as a "debt free note".  You can look up in any dictionary the definition of a monetary note and it says an evidence of debt.

Three types of debt money are.

The user and the issuer are both in debt in order for the money to exsist. (Modern checkbook money (the true money in our current system).

The issuer is in debt in order for the money to exsist but not the user. (the greenback)

The user(public) is in debt but not the issuer(government). (coins in our current system).

 

Debt free currency does work and works well, and history proves this beyond any shadow of a doubt.  Coins minted under the 1792 mint act are a very good example of debt free money, but are not the only thing that can be created as an assett free of debt.  Paper currency and modern electronic entry can (and should be moved into circulation this way) be created as an asset with no debt what so ever for the benifit of society.

 

Truth be known, check book entry (numbers) is probably the greatest form of money ever invented, but 100% of it is moved into circulation as an interest bearing debt. It matters not what we use for money but the principles under which money functions.  I've been awake for 24 hours now and I need to get some sleep.  I would have wrote a more in depth answer but it's tough when you're tired.  I hope this helps.

 

Larry can you help explain this further?

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Why Don't They Just Keep Printing?

etsan wrote:

I always thought that it was the government who decides to print treasury bonds (IOUs) when they need money, then the Fed gives money to the government to buy those bonds and the Fed gets interest on those bonds at a certain time frame.

I think you are right on target with your basic explanation of how the Federal Government funds budget deficits - they print bonds.  The private Federal Reserve uses the bonds as a promise to pay and collateral to monetize the debt.  The bonds are accepted because the people and their government back them up.  The private Fed creates the money virtually for free and then collects interest.

Thomas Edison saw through this scheme almost 90 years ago and elegantly explained what was happening and the solution:

“If our nation can issue a dollar bond, it can issue a dollar bill.  The element that makes the bond good, makes the bill good also...Both are promises to pay, but one fattens the usurers and the other helps the people.

If the currency issued by the Government was no good, then the bonds would be no good either. It is a terrible situation when the Government, to increase the national wealth, must go into debt and submit to ruinous interest charges..."  - complete article link

Edison was speaking along with Henry Ford at the Muscle Shoals hydroelectric power plant (Wilson Dam) built on the Tennessee River in Alabama.  It later became  the first and largest dam in the Tennessee Valley Authority.  It provided abundant clean electricity while reducing flooding risk and building a great sport and recreational reservoir. 

                                 Wilson Dam completed                                                           Thomas Edison and Henry Ford talking about usury

Henry Ford explained the potential for savings:

“see what a spectacle we have. Army engineers say it will take $40,000,000 to complete the big dam. But Congress is economical just now and not in a mood to raise the money by taxation. The customary alternative is thirty-year bonds at 4 per cent. The United States, the greatest Government in the world, wishing $40,000,000 to complete a great public benefit is forced to go to the money sellers to buy its own money. At the end of thirty years the Government not only gas to pay back the $40,000,000 but it has to pay 120 per cent interest, literally has to pay $88,000,000 for the use of $40,000,000 for thirty years... Think of it. Could anything be more childish, more unbusinesslike!"  - complete article link 

Edison went on to say:

"People who will not turn a shovel full of dirt nor contribute to a pound of material, will collect more money from the United States than will the people who supply the material and do the work.  That is the terrible thing about interest. In all our great bond issues, the interest is always greater than the principal."  - complete article link

We still issue bonds instead of money to pay for large public projects that benefit the people like the dam at Muscle Shoals.  For the same amount of money, we could have built two huge hydroelectric plants instead of one with money left over had we simply created the money ourselves.  And, we would have eliminated the debt! 

The banks issuing the bonds accepted the promise to pay and the collateral of the project to monetize it as debt.  The government could have accepted the collateral and directly monetized the project without any debt.

Flash forward...90 years...and the MTA (Minnesota Transportation Act) would enable State government to establish charter banks to monetize much needed transportation projects.  The MTA is a pending bill looking for passage.  Obviously, the big banks on Wall Street don't want to see this happen and they are fighting it.  They know if one state passes the bill, others will shortly follow to build needed infrastructure, promote commerce, increase employment and promote safety.  Ford and Edison would be proud to see such an initiative.

etsan wrote:

To pay back the interest the government uses our tax money.

It was not a coincidence that the IRS and income tax was created within months of the Federal Reserve act of 1913.  The IRS is the collection arm of the Fed; created to make sure the Fed could directly collect it's interest from the people.  BTW, the IRS, like the Federal Reserve, is a private entity - separate and independent from the government.  They take what they need in interest and supposedly return the rest to the treasury.  I say supposedly because we have to take their word for it without an audit.

Larry

etsan's picture
etsan
Status: Bronze Member (Offline)
Joined: Apr 22 2009
Posts: 57
Re: Why Don't They Just Keep Printing?

thank you thomas and larry. really appreciate it.

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Why Don't They Just Keep Printing?

Here is another resource that you may really enjoy.  Read it from the bottom to the top.  It's very powerful.

http://www.moneyaswealth.blogspot.com

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments