How The Elite Dominate The World
By Michael Snyder
Posted November 12, 2017
Here in the United States, most people just assume that the federal government creates money. But that is not true at all.
Many are absolutely shocked when they discover that U.S. currency is actually borrowed into existence. The federal government gives U.S. Treasury bonds (debt) to the Federal Reserve in exchange for money that the Federal Reserve creates out of thin air. The Federal Reserve then auctions off those bonds to the highest bidder.
Since the federal government must pay interest on those bonds, the amount of debt that is created in these transactions is actually greater than the amount of money that is created. But we are told that if we can just circulate the money throughout our economy fast enough and tax it at a high enough rate, then we can eventually pay off the debt. Of course that never actually happens, and so the federal government always has to go back and borrow even more money. This is called a debt spiral, and at this point we will never be able to escape it until we do away with this horrible system. More…