{"id":392,"date":"2015-03-25T10:25:07","date_gmt":"2015-03-25T09:25:07","guid":{"rendered":"http:\/\/finalwakeupcall.info\/en\/?p=392"},"modified":"2015-03-25T10:27:50","modified_gmt":"2015-03-25T09:27:50","slug":"money-creation","status":"publish","type":"post","link":"https:\/\/finalwakeupcall.info\/en\/2015\/03\/25\/money-creation\/","title":{"rendered":"Money Creation"},"content":{"rendered":"

Cause of the Sluggish Economy<\/strong>:<\/p>\n

Quantitative easing is not sustainable, it shifts income from the public to the insiders, and it also masks the real problems in the economy and stifles real corrections. Savers \u2013 especially retirees \u2013 spend much of the interest they earn. Cutting interest rates leaves them with less money to spend. The sluggish economy is also a product of the Central Bankers refusal to allow a genuine correction. Most important, it leaves people with \"sluggish-economy\"<\/a>fewer good jobs and lower wages. This is where the scam really hurts. From ten at random selected households nine of them have less money to spend today than they did 10 years ago. And the typical man of working age has suffered even more. – According to the Brookings Institution – real wages are now below 1964 levels: In 1974, the average man earned nearly $350 a week in constant 1982 dollars. Today, the figure is close to $290. – It must be clear, why prices aren’t rising as fast as the Central Bankers want them to. Simply most people don’t have any money to spend<\/strong>. And the one to blame are the Central Bankers themselves.<\/p>\n

 <\/p>\n

QE drives down interest rates, if banks don’t see a way to make a profit by lending, they won’t lend. What central bankers\u2019 manipulating of interest does is setting off a boom in so-called risk assets – like stocks. Lower rates tend to put upward pressure on asset prices. QE is inflating asset prices by keeping rates lower than they otherwise might be \u2013 that clearly helps borrowers and punishes savers. From which many have watched their net worth evaporate before their eyes as result of the manipulations by Central Bankers. It just is another Grand Thef<\/strong>t!<\/p>\n

 <\/p>\n

\n

\u201cWith the Federal Reserve printing trillions upon trillions of dollars to keep the economic system afloat, many investors and financial experts have surmised that the fundamental economic problems facing the west during the crash of 2008 have been resolved. Stocks are, after all, at historic highs.\u201d<\/p>\n<\/blockquote>\n

 <\/p>\n

But the insiders know different.\u00a0And if there\u2019s any single person out there who understands U.S. monetary policy and its long-term effects on domestic and global affairs it\u2019s former Federal Reserve chairman Alan Greenspan.<\/p>\n

 <\/p>\n

Alan Greenspan, the man who is essentially the architect responsible for domestic monetary policy under four U.S. Presidents\u00a0has now said that\u00a0a significant market event will take place when the Fed is eventually forced to exit their monetary easing and zero-interest rate policies. Irrefutable evidence has been discovered that Alan Greenspan was charged with destroying the un-backed fiat monetary system<\/a> and taking down the banking cabal starting all the way back in the early 1960’s. – Ultimately, it will lead back to a true and honest Gold Standard.<\/strong><\/p>\n

According to Greenspan: \u201cThe single biggest problem in our economy, is a lack of real capital investment.\u201d<\/p>\n

 <\/p>\n

Do all these countries don\u2019t see the true deception, what we do? Central bankers naturally want to exert power<\/strong>, and many times that power is severely abused. In the case of Ukraine, a war-torn and impoverished country, the conditions are much more ripe for corruption and abuse of power. The Central bank of Ukraine is being accused of – manipulating the currency<\/strong>, but that is mostly what central bankers do. – Central banks are far more dangerous and damaging than any terrorist organisation or army! They destroy our wealth. Don\u2019t overlook that fact and buy gold and silver to protect your purchasing power. Gold is so undervalued that all you need to do is load up and hold on.<\/p>\n

 <\/p>\n

The credit creation with paper money:<\/strong><\/p>\n

The creation of dollars and the operation by the Fed lies in two quotes from economist John Kenneth Galbraith:<\/p>\n

    \n
  1. \n

    The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.<\/p><\/blockquote>\n<\/li>\n

  2. \n

    The process by which banks create money is so simple that the mind is repelled.<\/p><\/blockquote>\n<\/li>\n<\/ol>\n

     <\/p>\n

    The banking system performs a trick that key to the whole thing.<\/strong><\/p>\n

    If you remember this, you can’t go too far astray: Banks do not lend out deposits. \u2013 Contrary<\/em> – Loans create deposits<\/strong>. Most people have been \"monetary\"<\/a>taught that banks get deposits first and then lend out a portion of them. “This view is a complete fiction.\u201d<\/em><\/strong> It is not how banks actually work.<\/p>\n

     <\/p>\n

    “As banks make a loan, they simultaneously create both the loan and the deposit. Say the banking system makes $1 billion in mortgage loans. It also simultaneously creates $1 billion in deposits as it credits the borrowers’ accounts. There is no need to have the deposits ahead of time. This is why lending is called ‘credit creation.’<\/em><\/strong> The deposits come from nowhere. With a few keystrokes, the banking system creates money.\u201d<\/p>\n

     <\/p>\n

    Remember: Loans create deposits<\/em><\/strong>. Not the other way around. Banks do not lend out deposits. And they do not lend out reserves. The reserves are a residual, set aside against deposits. And banks don’t lend deposits. They create deposits when they make loans. On a system wide basis, there is nothing the banks can do to lower reserves. The central bank – almost entirely – determines the level of reserves through its actions.<\/p>\n

     <\/p>\n

    So if banks don’t lend reserves, you may ask, what’s the point of “QE”? “Because QE drives down interest rates, the lower rates may, at the margin, bring in borrowers who might not have otherwise borrowed. They may induce lenders to make loans they otherwise wouldn’t have made. But the connection is far weaker than most people think. And it has nothing to do with reserves<\/em><\/strong>. If banks don’t see a way to make a profit by lending, they won’t lend. Banks never make a loan decision based on what their reserve position is.<\/p>\n

     <\/p>\n

    “What the Fed’s manipulating of interest does is set off a boom in so-called risk assets – like stocks. Lower rates tend to put upward pressure on asset prices.\u201d<\/p>\n

     <\/p>\n

    “You can criticize QE for inflating asset prices by keeping rates lower than they otherwise might be. – And it clearly helps borrowers and punishes savers.\u201d – But now people should know how banks really create money. And \u201cQE is not part of the credit creation process.”<\/p>\n

     <\/p>\n

    The Fed is NOT tightening. The economy has NOT revived. And gold investors have understood correctly that the Fed’s policies WON’T cause growth, or to immediate inflation. Instead, this will lead first to stagnation, which could last for many years. Just look at Japan.<\/p>\n

     <\/p>\n

    When that reality sets in, so will a more determined – and direct form of monetary stimulus. Gold’s day will come; but it may not come tomorrow. If you already own gold, hold your position. Gold has proven to be a solid store of wealth over the long term. There is absolutely no reason for that to change. Don\u2019t add to your positions until the yellow metal can find support sometime midyear\u2019s low, making its way higher from there.<\/p>\n

     <\/p>\n

     <\/p>\n

    Money for payment of interest is never created.<\/strong><\/p>\n

    When you take a loan from a bank, they do not take money from a clients deposit and lend it to you. They make it up on the spot with a bookkeeping entry. Until you take the loan, that money doesn\u2019t exist. Robert B. Anderson, who was secretary of the Treasury under Eisenhower, formulated it as follow:<\/p>\n

     <\/p>\n

    \n

    \u201cWhen a bank makes a loan, it simply adds to the borrower\u2019s deposit account by the amount of the loan. It does not take this money from anyone else\u2019s deposit; it was not previously paid in to the bank by anyone. It\u2019s new money, created by the bank for the use of the borrower.\u201d<\/p>\n<\/blockquote>\n

     <\/p>\n

    \"all<\/a>It sounds crazy, but it is the truth. You may have to work overtime to pay those dollars back, but no one worked overtime to get them in the first place. They were simply made up, on the spot.<\/p>\n

    \u00a0<\/strong><\/p>\n

    A $1000 loan, as is known, must eventually be repaid with $1000 plus extra<\/em> dollars as interest. So, every dollar starts with a debt obligation attached.<\/p>\n

    This creates an interesting problem: Extra dollars<\/em> will be required to pay back all of that interest. Where will they come from? You can work hard and pay back your $1000 loan with interest, but every dollar used to pay interest is created with an interest obligation of its own<\/em>. Where does it end?<\/p>\n

     <\/p>\n

    In fact, it cannot end\u2014it cannot resolve\u2014unless there are debt-free dollars<\/em> that can cover the gaps. And there are none<\/em>. This means that the dollar system can run effectively in one direction only<\/em>. It can operate smoothly while creating ever-more currency, but if the system starts to contract<\/em>, there will be a currency shortage<\/em>. And that leads to all sorts of troubles as explained in the previous essay<\/a>. – The world monetary system runs on credit money. When the markets shrink the supply of money is falling too. But imagine what happens to credit money. The money doesn\u2019t just stop circulating. It vanishes<\/em>.<\/strong><\/p>\n

     <\/p>\n

    A Second Look at the Federal Reserve<\/strong><\/p>\n

    The Federal Reserve Bank System is\u00a0NOT<\/em>\u00a0Federal, does\u00a0NOT <\/em>have any reserves, is NOT <\/em>a Bank, and is NOT <\/em>a System but a private MONEYCARTEL<\/em><\/strong> \"Dollars<\/a>that prohibits any competition. In 1913 President Woodrow Wilson shortly after being elected as President of the United States of America passed the Federal Reserve Act to allow for the formation of the Federal Reserve, a private banking cartel that took the control of the nation’s currency out of the hands of the federal government. Enabling the Crime Cabal to steal money<\/em> from the citizens by creating permanent inflation<\/em> and lining their own already wealthy pockets \u2013 which is nothing else as a GRAND SCALE THEFT<\/em>.<\/strong><\/p>\n

    \u00a0<\/strong><\/p>\n

    Central Banks, are a 16th<\/sup> century European invention being designed to steal money from the citizens through continuing inflation, as they politically couldn\u2019t raise taxes higher for which this hidden tax was invented to be effected through inflation, implying that up to 80% of income became taxed. Compared to gold which cannot be inflated; in the first century during the Roman Empire a nice suit was bought for 1 ounce of gold. Today twenty-centuries later a similar suit still can be bought for 1 ounce of gold. – Who gained from the loss of purchasing power? These always are the ones that sit closest to the nozzle of the issuance of newly printed money, usually the government and the banking system. Remember: Despite all arguments and explanations; inflation is nothing else than stealth taxation, which simply is theft!<\/p>\n

     <\/p>\n

    Where does the money come from? Where does it go? Who makes it? The money magicians’ secrets are unveiled, by showing the mirrors and smoke screens, the levers, and the wheels that create the grand illusion called \u2018money<\/em><\/strong>\u2019. It is a perpetual scam by charging interest over money that didn\u2019t exist, and became in existence out of nothing the moment a loan is emitted, and didn\u2019t cost more than the ink or impulses on a keyboard. Money that goes into the economy and dilutes the value of all the previous emitted money, which is called inflation. Consequently the value of current currencies goes down in value with every new issuance. So the US Dollar has lost in one hundred years 98% of its 1913 value. In a real and honest monetary system purchasing power remains constant over long time. Central banking as it is today, is the most BLATANT SCAM <\/em>of all in history, in which the government is always partner<\/em>. It’s all around us: the cause of wars, boom-bust cycles, inflation, depression, and prosperity.<\/p>\n

     <\/p>\n

    Gigantic River of Wealth:<\/strong><\/p>\n

    Thanks to the \u2018invention\u2019 of private Central Banking, the crime cabal created for themselves a wide river of wealth. People may question what they do with all that money? The principal concept is usury, commonly known as moneylending, by charging interest on a loan – actually interest on a \"huge.14.74964\"<\/a>loan ought to be charged as compensation for the use of your hard earned money. But a compensation of interest in return for the use of money that is created out of thin air and has cost nothing, is an excessive interest. – For a loan of 70.000 on a 30-year basis, people pay a total of 172. 000. Compared to the original 70.000 that is 2,5 time more that is paid to the bank! It is time value for money, but not the money from the Bank that is created out of nothing, which is an unnecessary<\/em> interest charge. The global monetary system is on purpose designed to be the greatest Travesty to mankind, the greatest Heist, and an obstacle to our Freedom in human history.<\/p>\n

    Fully intertwined with governments, there is no difference between banksters and politicians. That\u2019s the reason governments don\u2019t want to change it is as they are partner in this greatest crime to mankind. Creating this political power economy, in which politicians are bought to put competitors out of business.<\/p>\n

    As this occurs on a daily basis in thousands banks, this example is just like a grain of sand in desert. Look at all the financing of factories, hotels, equipment, high rise buildings, automobiles, study loans, credit cards, airplane leasing, and so on, altogether a staggering huge wide river of wealth is flowing into the banking cartel, generated by money that was created out of nothing and came in existence as debt; this money in short, should be going to the people who produce products and services.<\/p>\n

     <\/p>\n

    Think what the standard of living could be for all the people on this planet. And even worse: All this money is spent to buy power.<\/em><\/strong> This money is spent to buy the cartel \u2013 \u2018crime cabal\u2019 – power<\/em> and control<\/em> over other people, institutions, and countries.<\/p>\n

     <\/p>\n

    To acquire influence over all power centres in the world, they bought and buy control over Big Business \u2013 Exxon. Shell, P&G, most of the MSM outlets, news agencies, politicians, movie studios, labour unions, you name it. This river of wealth is used to acquire control especially over oppositions who apparently oppose the current process. So they are the owners of all the games going on, and it doesn\u2019t make them a difference who wins. Being the owner of the games they always win!<\/p>\n

     <\/p>\n

    They have bought all the nations. Via the World Bank, and IMF contrary to what is told, the money spent by these institutions doesn\u2019t go to the people but to the politicians \u2013 creating an efficient dictatorship. By putting more people in the bureaucracy, better control over food chains, and \"Money<\/a>to built their own monetary systems.<\/p>\n

     <\/p>\n

    There is no ideology, only money to acquire what they want. Welfare governments have been purchased with lock stock and barrel, to put these countries in place for the introduction of the NWO. They don\u2019t want a strong nation they need depending nations with an on welfare depending populace that are candidates for political turmoil, and in the end stay more open for the introduction of NWO to end the by the cabal created anarchy, and create \u2018peace\u2019. A plain P-R-S-case, create the Problem, wait for the Reaction \u2013 to offer their Solution. The plan is to weaken every nation through unemployment, the greater the better, like nowadays is going on in America and the EU; without any wealth – the name of the game is POWER. Our leaders don\u2019t want to solve this crisis they are instructed to lower people\u2019s standard of living to make these people depended on government\u2019s hand outs, to make them more willing to accept the implementation of their New World Order.<\/p>\n

    That\u2019s why in Europe a very unsettling situation has been created especially to those with savings and capital accumulated to live from. Either \"SDR<\/a>way if Greece pulls out of the euro or if the Eurozone makes huge concessions to Greece, then it would become increasingly difficult to view the euro as a serious currency, and so the next step is already prepared – the implementation of SDR\u2019s from the IMF, for which simultaneously the US dollar will be killed. – To be explained in another essay.<\/p>\n

     <\/p>\n

    But we the people have to slain this Central Bank creature, via \u2018real\u2019 democratic elected parliaments. Time is running out. It is not exaggerated, you can see it all around you, the World Trade Organization – WTO, World Central Bank \u2013 BIS \u2013 World Health Organization \u2013 WHO, European Union, NATO, are all never-ending centralisation of power in all areas of our lives, similar the food chain, biotechnology, energy supplies, medicine, media, and all the rest. Power is concentrated in de hands of a few people and corporations under the heading of \u2018globalization\u2019. For the time being we still have our freedom and elections to overthrow governments. Fortunately many of the highest echelon in society are awakening, although only 1 \u2013 3 % of the populace these people will be able to set of the urgently needed change in current history. This change is going to happen as every day more and more become aware about what is happening. Maybe your neighbours don\u2019t understand, which is a bad thing, but otherwise it doesn\u2019t require a lot of people to make the necessary change.<\/p>\n

     <\/p>\n

    Many in this echelon hold in organisations sufficient influence to motivate its members to WAKEUP and achieve amongst them more awareness about what is going on and how SWINDLERS\u00a0govern our society<\/strong> in reality.<\/p>\n

     <\/p>\n

    There is no single saviour of this world. There are many saviours, when many people wakeup en mass<\/em><\/strong> surely<\/em><\/strong> we will triumph<\/em><\/strong>. Just: PLAN TO WORK FOR THE FREEDOM OF YOUR COUNTRY.<\/p>\n

     <\/p>\n

    If you want to learn the irresistible story of how this astonishing system was created, watch below video, The Creature from Jekyll Island<\/a> – by Edward Griffin<\/a>, who also wrote a book by the same name.<\/p>\n

      \n
    1. Edward Griffin<\/a> explains clearly in detail what is going on in our world, and how we the people are deceived and robbed, it all likes unbelievable, but the truth is that it is true, and no expert dared to speak about or didn\u2019t recognise the real extend of this simple destructive SCAM.<\/li>\n<\/ol>\n