THE CENTRAL BANKING SCAM EXPLAINED
CENTRAL BANKING AND GOVERNMENT DEBT
When government uses up the money it collects in taxes, it resorts to borrowing.
It can borrow by selling bonds to investors, or to foreign governments.
But when governments borrow from a privately owned Central Bank, the Bank is actually creating new money “out of thin air” and then lending it to the government at interest.
The injection of new money into the economy has the effect of reducing the value of existing money (inflation).
The government must then tax its citizens to repay the loans (Bonds) to the Central Bank, plus interest.
If the government were to simply create its own debt-free currency to cover its bills, there might still be an inflationary effect, but the government would not carry debt, and therefore not need to tax its people to pay principal and interest to the Central Bank.
It makes no sense for a government to pay interest to a Central Bank on new currency when it can simply create the currency itself, interest free!
CENTRAL BANKING AND LOCAL BANK / CONSUMER DEBT
The other way in which a Central Bank preys upon people is by lending to the nation’s banks. The banks can then increase the number of loans to their customers by borrowing money themselves from the Central Bank (again, created out of thin air.) The local bank borrows at a lower rate from the Central Bank, and then re-loans the money to you at a higher rate. Consumer debt is thus maximized as constant inflation erodes the value of existing money.
Consumers do not benefit from debt as they would believe because the new money pumped into the economy artificially drives up the price of whatever they are buying. In short, behind its academic cover, Central Banks are legalized counterfeiters and loan sharks. When a Central Bank, owned by private shareholders, controls the money, every dollar of currency must be loaned into circulation at interest. Therefore, there will always be more total debt outstanding than there is money in circulation. Those who control this perpetual debt machine always become powerful enough to control the government.