It still amazes me how people simply do not understand fiat currencies, and how much of the global monetary system works. It’s through the fractional reserve banking system that sovereign debt is created and perpetuated, in great part by creating money out of thin air.
The Federal Reserve Bank(Fed), a private institution, is the central bank of the United States. Whomever actually owns the FED is, in my humble opinion, one of the greatest American mysteries. Today the FED holds a money monopoly in the form of Federal Reserve Notes. By design the FED was created to suck the life out of American businesses and its populace; and a bane to the free market.
In the words of Thomas Jefferson, A Founding Father of the US, 2nd US Vice-President to John Adams, and 3rd President of the United States:
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Part 1 of 2. To be updated.