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Dear
Jane and Joe,
You
are being stolen blind. Few are aware of the scam. Unfortunately,
the thieves are not content with just your loss of vision. They intend
to own you and your labor outright. Let’s start unraveling
exactly how they have set about this task.
Money
and its creation is a very complex subject. Not many people understand
it even though it literally drives most of the citizens in the developed
world. The sum total of what most people know about money is that they
don’t have enough of it. It’s getting harder and harder to
have enough of it as the bar is continually raised.
You
can read volumes of books and articles explaining the monetary mechanism, yet
come away completely perplexed. It is confusing by design, just as it
is fraudulent by design. If it weren’t so fraudulent, it
wouldn’t have to be so confusing.
I’m
going to attempt a simple English explanation of how the Federal Reserve acts
like a feudal landlord as it creates and manages its paper products.
You need to understand the basic principles and end results of Fed
activities. That is much more important than wandering through the maze
of their contorted mechanisms.
Principle
#1: The Fed is a private corporation that has been granted a license to print
money for the United States
“Bucks
R Us,” if you will. The ultimate franchise. This is
supposed to be Congress’ job, but they wimped out in 1913. Not
that you’d want our current Congress to administrate money or manage
the economy. They can hardly manage their own personal hygiene.
Their
duty, per the Constitution, is to make the money and hold its value
steady. The free market takes over from there. The endless booms
and busts we’ve seen since 1913 are a direct result of monetary
mismanagement by the Fed. Rising prices through the decades is also of
their doing.
Principle
#2: The Fed takes their cut on every dollar they create
Sorry,
the Fed is not exactly a benevolent charitable organization. This is
the ultimate “for profit” confidence game. It’s been
going on for nearly a century. Here’s a quote from a 1936
Congressional bill that attempted to end the Federal Reserve:
The banks
manufacture, without borrowing it, the monetary credit which they loan to the
government. For every dollar they themselves contribute to the loaning
process, they manufacture 10 credit dollars, and call them their own,
although they base the credit dollars on human sweat and labor and productive
genius that is not their own. We need to be delivered of the curse of a
money system that is not owned, as a cash-credit system, by the American
people.
Needless
to say, this bill never passed. The Fed continues to create money out
of nothing and charges the American people interest for these keyboard
entries. Americans pay back this interest through the fruit of daily
effort and work.
How
would you like to type up trillions of dollars of paper money, loan it out,
and collect the interest? Don’t try this at home.
Principle
#3: There are no practical restraints to money creation
The
Fed can “monetize” whatever they want.
“Monetize” means creating what we use as money out of pretty much
anything. In theory, an elitist banker could send the Fed six chickens
and the Fed could turn over $2 billion to his buddy. Don’t laugh,
they’ve done worse.
Here’s
a controversial quote from the current Bucks R Us head, Ben Bernanke:
...the
U.S. government has a technology, called a printing press (or, today, its
electronic equivalent), that allows it to produce as many U.S. dollars as it
wishes at essentially no cost.
Yes,
the Fed can produce the dollars at “essentially no cost.”
Unless you take into account what that does to Jane and Joe and their
currently held dollar-denominated assets. Ben has been known as
“Helicopter Ben” ever since. Print the money, drop it from
helicopters, and inflate your way out of any
self-induced mess.
Principle
#4: Inflation is a hidden tax
You’ve
just seen a glimpse of whom and what creates what is commonly called
“inflation.”
The Masters. Every
extra piece of paper funny money produced dilutes those already in
existence. Prices then rise because current money is
cheapened. The Fed is an instrument of inflation. It’s what
they excel at most. The more money they create, the more interest they
make. You’re cheated on both ends of the transaction.
This
is so simple you must be extremely educated (indoctrinated) not to understand
it.
Now
just might be the perfect time to invest in helicopters. Ben is on the
pad and only Plan H is in the playbook.
We’ll
continue this discourse next week. Protect yourself. Precious
metals are a prime method of protection.
Invest
Resourcefully,
Russel McDougal
Investor’s Daily Edge
All
articles by Russel McDougal
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