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For some, the US dollar is the country’s fiat currency. It all starts with the US Treasury who creates bonds which are governing administration IOU’s that are paid back over a specific time period with attraction.

Nonetheless it’s important to note, that when any Fed writes and problems a check, there is no revenue what so ever on the account to cover the amount of which usually check. The account a lot of these checks are written out of will always carry some zero balance. Therefore each dollar that exists, is in fact borrowed and must be paid back.

Once again all the banks go back to the US Treasury auctions the next month buying more bonds and merchandising them to the Federal Save. And every month this cycle of buying and selling makes on getting repeated.

The Treasury holds regular auctions to sell off its bonds to primary agents, who are the major loan companies. Then the US Federal Reserve enters the game by getting all the bonds from the banks through something called “open market operations”.

The entire system of getting money from nothing is a ready-made scam. It all starts together with the Federal Reserve and the USA Treasury exchanging IOU’s. A good check is an IOU meant for cash and a link is an IOU to be repaid with interest at several later date. Cash has existence once the Fed concerns someone a check.

It is a Ultimate Government backed and sponsored pyramid scheme, the place only the banking high level who own the Federal reserve and other central banks around the world, massively profit by stealing out of generations of innocent locals.

Within the industrial banking sector we now have what I refer to as “magic money creation” which is actually called “Fractional Reserve Lending”. Here is an example of how fractional reserve lending works. Let’s pretend someone deposits $100. 00 into a bank account, the bank the fact that received that deposit is right now legally allowed to remove $90. 00 or ninety percent of your deposit and re-lend it to someone else.

The person who received your hard earned dollars from the bank as a loan will use it to buy an issue such as a car. Then the face will pay the car dealer with the money he borrowed. Today the car dealer will lodge this money into his own account at the loan provider. Now there is $190. 00 on deposit and the lender can legally steal Three months percent again or $81. 00 and lend it out.

At last over time, there becomes an excessive amount of bonds at the Fed and cash in the Treasury. Any Treasury now takes that excess cash and stores it into the various organizations of government.

Which is then spend on wars, military, government salaries, social programs, public work projects and other deficit spending that keeps concerning re-occurring. Next all those government employees and military staff take their salaries and deposit them into a variety of bank accounts throughout the nation. This is how the fiat revenue now enters the commercial banking sector.

The next person then comes along, and borrows funds. Once the new borrower pays off the seller for what they bought the money again is normally re-deposited into the bank and there is $271 dollars at deposit. This creation of money through deposits and loans (fractional reserve lending) keeps re-occurring to the place at some point your original $100. 00 deposit has grown to make sure you $1000. 00 (ten moments the amount of your original deposit) in fiat currency constructed from the bank.

Once again nothing backs those dollars except IOU’s. Furthermore, for the hard work every single US citizen does to earn his or her salary, a part of it eventually ends up for the Treasury in the form of income taxes. Goods on the market pays the principle and interest on the bond that the Fed bought with a verify from nothing. US citizens are forced into paying income taxes for the use of our recent money supply system.

In that way actually leaving your profile with only $10. 00 or ten percent of your total deposit. However your bank statement will still demonstrate the entire $100. 00 greenbacks or one hundred percent of your deposit, on deposit in your bank account.

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