Recently I’ve wound up watching some documentaries and doing some extra reading that has delved deeper into the practice known as “fractional reserve banking”. Now, many people have varying levels of understanding as to the way in which the Federal Reserve (which is of course “neither Federal, nor a Reserve”!) essentially prints money out of nothing. Paper money, with nothing to back it, and they can simply print as much as they want, as often as the want. Ah, the beautiful, horrific reality of our fiat currency… But what has been really quite amazing to me, is to learn how the Fed is really only the first step in the process of “money-out-of-nothing” creation. Indeed, as I have come to understand it with my limited, ever-so-not-fiscally-inclined brain, it could be said that things like the Federal Reserve, and Central Banks in general, going all the way up to the IMF and World Bank, are all really just pieces of what could be described as the “global fractional reserve banking system”.
But what is fractional-reserve banking? Let me turn to a completely “non-conspiratorial” source for a simple explanation. The site learningmarkets.com gives a very simple and easy to follow outline. It explains how banks are able to loan out 90% of the deposited money they have “on hand”, and at the end, this very by-the-book explanation fully admits that through this process, more money is created! They show how an initial investment of $100,000 can grow into $1,000,000, under a ten percent reserve requirement.
But hey, so what? Isn’t that what banks are supposed to do? Reloan their money to other people, in order to make interest? Isn’t that how the “economy works”? How they “grease the wheels” of industry by keeping the liquidity flowing?
Well, we’ve been conditioned our entire lives to think so, and really, scrutinizing something like the banking system is really the perfect primer for coming to understand the whole bizarre genius of how to “hide something in plain sight”.
I used to listen to an almost embarrassing amount of National Public Radio. Every day, you’d listen to them rattle off the numbers. The Dow. The S&P. The Nasdaq. Is the Fed going to keep interest rates at an all time low, or are they going to raise the rates and send the whole economy teetering over the edge? Are the job numbers up or down? How is the dollar stacking up against the Yuan or the Pound or the Ruble? Oil cost how much per barrel today?
But it’s really all just total fluff. Smoke and mirrors. Utterly meaningless noise. When you start to learn the ins and outs of where money “comes from”, beginning with central banks such as the Federal Reserve, and then on through all the various “smaller” banks who loan the money out on interest, over and over again, you begin to quickly realize how completely detached the “state of the economy” really is from anything as tangible as the actual work being done by actual living, breathing human beings.
We’ve all heard the politicians go on and on about dealing with the national debt”, or the “debt crisis”, or maybe you’ve even come the place where you understand that we in fact live in a completely debt-based economy. Yet, this still only scratches the surface, because as humans, we are inherently inclined to assume that all debts have to first start out somewhere as being based on things with actual value. And herein lies the rub, the core reason which makes this whole “debt-based system” so insidious. The travesty is not that we, either as a nation or as individuals, are “in debt” in the sense that we owe anyone a bunch of money. Rather, our money IS debt in itself, if that makes any sense whatsoever…
In a long but incredibly insightful documentary I watched last week, it made the most poignant statement about “credit”. They said, “Credit simply means to believe”. And after a bit of reflection, I realized, this was quite true. When you “give someone credit” for something, you believe they did something or will do something. When a lender “extends credit” to someone, they are essentially saying “We believe that you will pay us back”. But the crazy thing is, when it comes to money, and indeed, this entire juggernaut system as a whole, it is really OUR belief, in IT, in THEM, that makes it all work. It is simply us, giving “credit” to the worthless paper money (or worthless digital money, etc.) that gives it any value in the first place. It is manufactured out of thin air, and then multiplied countless times over, again out of thin air, and the only thing which allows this counter-intuitive and completely illogical system (i.e. racket) to operate is our own collective, acquiescence and participation.
Ok. Now, for me, the confusing part was to then stop and wonder, “But how could all money be worthless? There is obviously such a thing as ‘real wealth’ in the world. After all, isn’t that what the banksters are greedily trying to get their hands on, by benefiting from what is essentially a “too-big-to-fail” Ponzi scheme..?” And the answer is, of course there is such a thing as ‘real wealth’, i.e., things that have real, intrinsic value to human beings. (those things fall on a sliding scale of course, depending on how they fit into our current given scenario according to the whole ‘hierarchy of needs’) That real wealth, the real “stuff”, is what’s at stake. From the work we do to make it all “go”, to the food we eat, the water we drink, the houses we live in, and the land everything sits on.
Jesus said, “the love of money is a root of all kinds of evil”, and we all tend to simply think of this statement as a denouncement of generic greed, the basic coveting of another’s actual goods, an interpretation which of course is completely accurate. But there is a sense in which we can step back, and wonder if at the same Christ’s words don’t just as much cut through to the love of the system of money itself. The inherent nature that money has, as a system, to be manipulated, to represent everything, anything, and nothing. Money is a mechanism, which on the surface we look at as a necessary means by which we have a tool for common trade, a language for commerce, a “standard” by which we’re all allegedly playing by the same underlying rules. Only we aren’t. Money, particularly debt-based money, in an overall debt-based economy and society, is simply geared towards one thing, complete takeover. It is by far the most effective tool Satan has in his arsenal for building a global infrastructure that at some stage will be put in the hands of his false messiah. Some Christians still believe this is a coming reality, others do not. Of those that do, there are still a great many of them who do dare to recognize that this system is constantly being knit together all around them, and has been for quite some time now. It is not some thing coming over the horizon, something that will manifest suddenly after the saints have been safely whisked off to the clouds, but is being implemented right now, and we see it on our televisions and hear it on the radio every single day, and for the most part we continue to think of it as just “the way the world works”, as something normal, and although perhaps full of corrupt individuals, not a corrupt and insipid system in and of itself. Not the Faustian deal that it ultimately is…
Scripture says, “There is nothing new under the sun”, and we see this truth born out once again, as the lie told in the garden by the serpent comes full circle, back to us in this late chapter of history, where he beckons us to exchange that which has true value for something that is in the end empty, and worthless, and fake. Let us cling to the words of the Son, who said:
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” (Matt 6:19)
Some Fed. Reserve / Fractional Reserve Banking videos/documentaries worthy of note:
Century of Enslavement: History of the Federal Reserve by James Corbett
The Money Masters
The Federal Reserve Explained in 3 Minutes
George Carlin spills the beans on those who own everything (just for fun…)