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The Federal Reserve Systematically Transfers Wealth From The Taxpayers To The Ultra-Wealthy Elite

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The Great Seal Of The United States - A Symbol Of Your Enslavement - Photo by Ipankonin

Last year, $415,688,781,248.40 that had been forcibly extracted from American taxpayers was transferred into other hands.  Most of it ended up in the pockets of the global elite.  So what did the American people get in return for more than 415 billion dollars?  Nothing at all.  No roads were built, no schools were constructed, no teachers were paid and none of it went to national defense.  It was simply interest that was owed on the national debt, and most of it just made the ultra-wealthy even wealthier.  But this is exactly what the Federal Reserve system was designed to do when it was created back in 1913.  It was designed to get the U.S. government trapped in an endless spiral of debt that would systematically drain the wealth of the American people and transfer it to the ultra-wealthy and the international bankers.  When most people think of a “wealth redistribution scheme”, they think of a government raising taxes in order to give money to poor people.  But the Federal Reserve system works in reverse.  Money is taken from all of us and it is redistributed to the global elite.  That is why a federal income tax was instituted the exact same year that the Federal Reserve was.  Money is extracted from all of us through taxation, and then it is transferred from the federal government to the ultra-wealthy through debt payments.

 

So what role does the Federal Reserve system play in all of this?

Many critics of the Fed focus on how much money the Fed makes each year, but that is a mistake.  The truth is that the Fed returns the vast majority of the money that it makes to the U.S. Treasury.  The Fed is not a money making machine itself.  Rather, it is a system that enables others to make hundreds of billions of dollars each year.

I think that it is easiest to think of the Fed as a “middle man” between the U.S. government and the global elite.  It was designed by the international bankers for the benefit of the international bankers.  The entire goal of the Federal Reserve system is to make the ultra-wealthy even wealthier.

The Fed is a privately-owned banking cartel that has a monopoly over money creation in the United States.  Nobody else, including the U.S. government, can print money.  So those that claim that “the U.S. government can print money” are just dead wrong.

When the U.S. government wants to spend more money than it has, it asks the Fed to make some more money.  The Fed then creates money out of thin air that did not previously exist.  Normally this money is not even printed up.  It is just entered into a computer.

In return for the new money, the U.S. government gives the Federal Reserve some U.S. Treasury bonds.  In essence, U.S. Treasury bonds are promises to pay back money.  But the U.S. government always agrees to pay back more money than it receives.  So a larger amount of debt is created than the amount of new money that is created.

When the Federal Reserve receives those U.S. Treasury bonds, most of the time they take them and auction them off to interested buyers.  This is how they get into the hands of the ultra-wealthy and the international bankers.

So how is the U.S. government ever supposed to pay back all that debt if the amount of new debt being created is always larger than the amount of new money that is being created?

Well, the theory is that the money will be able circulate through the U.S. economy really fast and that the federal government will be able to tax it enough times and at a high enough rate to be able to pay off the debt plus the interest.

But that never seems to work out, does it?

Instead, the federal government always finds that it can’t fund government activities and pay off the debt at the same time, so they always come back to borrow more.  That is why it is called a debt spiral.

So the debt just keeps getting larger and larger.  Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

And as the debt keeps getting larger and larger, so does the money supply.  And that is why we have such a problem with inflation.  Since the Federal Reserve was first created, the U.S. dollar has lost more than 96 percent of its value.

But the global elite are not just doing this in the United States.  They have established similar systems in almost every nation on earth.

So every year, gigantic mountains of money are transferred from taxpayers all over the globe into their pockets.

And that is the primary reason why they have so much money.

It has been estimated that the global elite have up to 32 TRILLION dollars stashed in offshore banks around the planet.

And that is just the money that we know about.

Are you starting to understand why people are so upset about this stuff?

Fortunately, people all over the world are starting to wake up to this massive wealth redistribution scheme.

The creation of money should belong to the people – not to the global elite.

Just consider a statement that Italian politician Beppe Grillo once made

“Whom does the money belong to? Who does its ownership belong to? To the State fine…then to us, we are the State. You know that the State doesn’t exist, it is only a legal entity. WE are the state, then the money is ours…fine. Then let me know one thing. If the money belongs to us…Why…do they lend it to us??”

Doesn’t that make sense?

If the currency of a nation belongs to the people of a nation, then why do we let the elite create our money out of thin air and lend it back to us?

Why do we continue to use a debt-based currency system that is making the global elite far wealthier at the expense of all the rest of us?

For much more on how the Federal Reserve works, please see my previous article entitled “On The 100th Anniversary Of The Federal Reserve Here Are 100 Reasons To Shut It Down Forever“.

Please share this article with as many people as you can.  I have tried to simplify things as much as possible in this article so that even people that have been through the dumbed-down public education system in the United States should be able to understand it.

So what do you think about the Federal Reserve?

Are you angry that hundreds of billions of dollars are being transferred from U.S. taxpayers to the global elite every single year?

Are you disgusted that money that is created out of thin air by the Federal Reserve is being used to bankrupt our nation and enslave future generations of Americans to trillions of dollars of debt?

Please feel free to post a comment with your thoughts below…

  • carolouise

    Excellent article!

  • MichaelfromTheEconomicCollapse

    Thanks carolouise :)

  • MichaelfromTheEconomicCollapse

    What do the rest of you all think about this?

  • Bill G Wilminton NC

    Michael,
    Great missive but I see the same lack of understanding by the answer from DJohn1. He thinks the problem is inherited weath. People don’t getit. You explained it well…. our money is debt based and it is borrowed into existence. The Federal Reserve is the most corrupt, immoral, and debilitating system ever devised. It is a dooms day financial slavery system eating America alive. The debt cannot be paid off as there would be no money in existence……the people don’t getit. So politician (traitor) after politician (traitor) give speech after speech WE WILL PAY THE DEBT DOWN WITH OUR PLAN hahaha lol I just roll…… but it is not funny ! The traitors know the people can’t figure it out because THEY DO NOT LISTEN. RON PAUL SAID SHUT DOWN THE FED !!! HE SAID IT PERFECTLY…….and the repubs would not let him speak at repub convention because repub and demo are the same 2 wings of the same bird and bird is going into a brick wall at 100mph.

    So what is difficult to figure out… the big international banks like Goldman Sachs, JP Morgan go to the fed window and borrow for next to nothing ( under 1% and then buy gov debt paying 2.5% and make the interest on billions and billions. This is just one play of many many many. Some of this almost free money goes into financial tools all over their world. Commodities, derivatives, stock market ad nauseum…….and they can be as aggressive as they want because if they lose on their ( bets lol ) THEY ARE TOO BIG TO FAIL AND WE THE AMERICAN PEOPLE MUST BAIL THEM OUT hahaha lol see why I am embarrased.

    Just how dumb are my fellow Americans…..and it is worse Michael I could fill 20 pages of financial info showing the coming sinking of the US TITANIC not by accident but BY DESIGN.

    The federal reserve is a banking cabal in league with the government. They print the money that keeps the wars going, the welfare for votes, the debt increases that keeps the image that the economy is in recovery. Without the federal reserve Congress would have to agree to all this deficit spending and the American people would see the real deficit numbers and how much taxes must go up to support it. But all this is hidden in the secret tax of inflation. Michael can you get the American people to SEE…..I think not THEY WANT TO BELIEVE THE LIE. Wrote this missive quick and it is late sorry for errors.

  • Bill G Wilminton NC

    DJohn1……Plse read missive to michael further down…….thanks your missive was good and it spurred me to write. I do not have expectations of change.

  • Nelson in Texas

    All I can think about is the Bible saying “What does it profit a man to gain the world and loose his soul.” That is what is happening. The Elite in their quest to be rich fail to see their need for the saving grace of Jesus Christ and will go down that wide road that leads to Hell. I would rather be a street beggar having my sins washed white as snow by the shed blood of Christ than have all the money in the world. This life is temporary and eternity can be spent with Jesus Christ or forever suffering in Hell.

  • DJohn1

    I think inheritance is the reason why things are set up the way they are.
    People do not realise a lot of things because our government sponsored education system is not meant to teach leaders how to think. That is done elsewhere. It is taught for followers rather than leaders.

    Questions are discouraged in the school system by a set of teachers brainwashed into teaching the way they do by the colleges.
    The entire mindset of the schools is to march you from one class to another with barely enough time to go to the bathroom if needed. It is about as restrictive as a prison. Then afterwards they are set to go into large businesses in a system that restricts them just as well as a prison.
    The draft and the military were originally set to encourage this follower mindset. Again, I liken it to a prison system though not quite as restrictive in its discipline.

    The deck is definitely stacked in favor of the very wealthy. The Federal Reserve with the miss-leading name is deliberate. I personally think it was set up between the Rockefellers and the Morgans. The 400 top families money-wise rule the system. Having a member in Congress is a matter of status with this group.

    The entire system is set up so that the common person very seldom makes more than enough money to support themselves by working for someone else. The small business man is set to fail by the very rules of the IRS.
    Huge bureauctratic agencies rule the government and have for as long as I can remember.
    The most powerful of those agencies put down anyone that threatens the system. They are very much behind the scenes. They are there.
    There is one set of rules for the territorial U.S. There is an entirely different set of rules for those bureaus working abroad.
    The Federal Reserve is how they stay on top. In any political situation, the key is to follow the money. This is especially true of the two twin parties. They established complete control of the electorial process many years ago. Historically parties break up and are reborn as something else when it becomes too corrupt. That no longer happens. Independent parties no loinger arise to take the place of the corrupt old guard. I think the critical year was 1913. That is when it all went bad.

  • Jacq

    Very well said. One of the reasons people aren’t concerned is that for most, it’s difficult to see the connection between all the levels of this ‘plan.’ Do you have a blog?

  • DJohn1

    Never seen the need for a blog.

  • Jacq

    I get it. My question was a selfish one – I’m learning from you. Your posts are helping me see the connections that I sensed were there but couldn’t delineate due to a lack of knowledge of key details.

  • Armel

    Great article, as always :) we’re looking at just getting out of the US entirely….I see no future here for our children, or their children…and this country is not what my forefathers fought and died for. There are days when I say I want to stay and ride it out, but with the militarization of the local police…and we’ve seen this even just the other day when two cops showed up on the first day of school at a local district down here, unannounced, and just walked through the halls, telling the kids that they were there for their safety. There are cameras everywhere and the privacy in this country is far beyond even what Orwell would have anticipated. I’ve seen this country turn more into Russia than I care to, and while it’s a shame, for those of us with kids, we have to seek greener and more stable horizons…Mexico just backed the peso with silver, and many South American Countries are looking awful Paradise-ish right now compared to here where they’re taking more of your paycheck, you know you’re never going to see your pension plan and the insurance rates for everything are just skyrocketing. There’s a psychology to it all, and if you’re smart enough to see it, I liken that to survival of the fittest….get out when you can so as to stay alive.

  • Armel

    Great article, I love the new site! With this format, you’ll be able to cover more topics and reach more people…very informative!

  • darrell

    It’s too bad there’s no mention in either the article or comments that the Federal Reserve is entirely made up of Jews. Either cowardice or ignorance. A few sites like Veterans Today don’t shy away from this fact, as well as Jewish control of just about everything in our culture.

  • Sonny

    This was a great article and quite educational. So few of us have a true understanding of what is really going on behind the scenes. And thanks to those of you who have a greater knowledge of how the wheels turn. I have of late heard a great deal about the Illuminati. I sense that these are the folks we are talking about here. At first I thought that this was a mythological group of people, but in reading these comments I get the impression that they are very real. Others, on other sites, have portrayed them as being evil. Can anyone with any real first hand information shed some realistic light on this.