"If all bank loans were paid, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system. When one gets a complete grasp upon the picture, the tragedy and absurdity of our hopeless position is almost incredible -- but here it is. It (the banking system) is the most important object intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon." -- Robert Hemphill, for 8 years credit manager of the Federal Reserve Bank of Atlanta 1936

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COMMENT

In other words, folks, every US dollar represented in the denomination of Federal Reserve Notes, in circulation today, represents a debt owed to the Federal Reserve System. The Federal Reserve System only issues money when a rate of return is paid on that money to keep it in circulation. And so, when the Federal Reserve continues to infuse additional dollars into the monetary system, such as it is doing in amounts previously unheard of, each additional dollar in circulation yielding a return on its par value to the Federal Reserve System, that return must come from somewhere. That "somewhere' is your pocket and mine, and anyone who holds Federal Reserve dollars. Since the money to pay the interest back to the Fed System is never created, interest to the Fed System can only be paid by removing enough Fed Dollars already borrowed into circulation to pay the specified interest rate. But the principle owed is not removed! And so contrary to what one might believe, bank interest is never paid out of a debtor's assets. Bank interest is paid by borrowing more funds from the Federal Reserve. You may not be the one borrowing to pay the interest, but SOMEONE is. In this system, the American economy, over time, is being owned more and more by the Federal Reserve, and less and less by private equity.

Because the money to pay interest to the banks is never created, Americans must pay that interest out of their own assets. In a stagnant economy such as we have, within which the growth of hard assets is equaled or outpaced by depreciation, eventually the bleeding of interest out of the monetary system, which goes directly back to the Fed, insures that an increasing proportion of the total aggregate of American assets in the economy are owned by the Fed, and a decreasing proportion are owned by the private citizenry.

In short, the American people are being crowded out of their own economy by the banking system. But of course, we see that and feel that phenomenon going on every day. Why are things just so financially crummy? Why are their so many people out of work? If you have a job, why haven't you had a raise? Why do you have to count every stinking dollar each month and you still don't have enough to pay for your cost of living?

The answer is that over time, you are being made a slave to the Federal Reserve System. That's right. All you folks who think of yourselves as the middle class, funny how that class of folks is going broke, isn't it. And when the middle class finally goes completely belly up, and joins in with the lower class, then just like the lower class, its only alternative is to depend upon the government for subsistence. When that happens, the destruction of the middle class is complete, and all that is left are large corporate cousins to the banking industry, the banking industry itself, and of course the politicians who received compensation and other benefits from the banking industry, and from their corporate cousins, who sold you out for their own personal benefit.

And to make matters worse, the Federal Reserve and their corporate cousins keep funding American wars...out of your pocket. Funding wars only only creates more debt for your nation, ultimately meaning your debt, that you owe to the Federal Reserve. And that is one great purpose of waging war, diluting the value of dollars in your pocket, while maintaining a modicum of demand for the dollar worldwide.

How do these wars maintain a modicum of demand for the dollar worldwide? The wars America wages are always against nations who have decided NOT to trade using US dollars! That includes Iraq, Libya, numerous nations across Africa...AND SYRIA! Of course, the primary nation presently in the sites of the Federal Reserve System is Iran. Iran refuses to sell their oil using US dollars. That being the case, Iran is a mortal enemy of the Federal Reserve and its regime must be changed, just like American did in Iraq, Libya, and is presently doing in Syria and all across Africa. THAT is what all this is about. That and only that.

After Iran's regime is destroyed, then it really gets serious. That is because the only major nations left who will still resist using US dollars will be America's two major military rivals, China and Russia.

Rod Remelin

 ro@thelastoutpost.com