First off let me apologize to all you die hard Reality Next fans out there, as I took a little break. A sabbatical if you will, as I had a nice visit home with my family to celebrate a wedding.
Let’s get back to business here and talk about money. A subject we should all know a little more about as there is no way to survive in this world without it. Yet very few know much about it or understand its origins. After all they do not teach what we are going to talk about here in school. Sadly the powers that be would prefer you stayed ignorant to this subject which thus keeps us indebted to them.
I want to talk about Central Banks, and of these banks let’s start off with the grand daddy of all Central Banks; The Federal Reserve. This is the Central Bank for the United States of America and contrary to what the name would lead you to believe there is nothing Federal about it, nor do they really hold any reserves to the vast amount of monies they have been printing over the years. It’s a private bank, printing currency that is now simply backed by nothing more than trust.
America once had control over their own money supply that was backed by gold and silver. However, in around 1910 there were several secret meetings that took place on Jekyll Island of the coast of Georgia. The purpose of these meetings was to draft the then proposal for the Federal Reserve Act. Then on December 23rd 1913 while most of congress was home with their families, President Woodrow Wilson signed into law The Federal Reserve Act. That single act transferred the power and control of the Nations money supply from the United States Government into the hands of private bankers.
Since the Federal Reserve has had control of America’s money supply it had taken about 100 years to get an official audit, and the results were not good. See Here. Doesn’t look like a solid foundation for a currency that is backed only by trust. It seems they have strange concept of trust.
Now let’s talk about how the USD became simply backed only by trust as it once was backed by gold and silver. What happened?
All paper currencies started out as a paper receipt redeemable for gold or silver. Paper currencies were and are convenient to make change with and easily transported and exchanged for goods or services. After WW2 America ended up with large sums of gold which further backed their currency and the post war boom. However, as the years ticked on and America continued to expand and print their money supply other countries became suspicious of how much gold the US actually had in relation to the money they were printing. Remember that paper monies were once printed coupons redeemable to gold. Anyways, as the Vietnam war raged on and the Federal Reserve continued with its printing press, the world became more suspicious of America’s gold reserves in relation to printed dollars.
The Bretton Woods Agreement is an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to gold. Well, in the early 1970’s when the rest of the world was questioning the ratio of USD to gold, the US who is at mercy to the Federal Reserve had no other option but to decouple their currency from the Bretton Woods standard, therefore no longer having their dollar backed by gold. However, crafty as they are these Central Bankers. Knowing that this would be a problem to not have your currency backed by gold, they (The Federal Reserve) in the most clever of ways backed their currency not by gold, but by the next best thing. Oil.
So how do you back your currency with oil. Well you could start by providing military might to the worlds largest oil producer who is having troubles with their neighbours in the region. Yep, they made a deal with Saudi Arabia, that if Saudi Arabia only sells oil in USD then they will get all the military support they need from the most powerful military on earth. And that is how the petrol dollar was born. The Federal Reserve simply gets a cut from every barrel of oil sold on a global scale, in USD. Now do you understand how they have pretty much unlimited funds for their war machine?
If you think the war in Iraq was really about weapons of mass destruction and planes flying into the World Trade Centre; well then… You are way way off. The war in Iraq was really about Saddam wanting to sell his oil in Euro dollars instead of US dollars. To this day these wars continue, but you will not hear the truth about them on CNN or FOX news.
Ok. So I went off on a bit of a tangent here and it’s clear to me now that this whole topic of Central Banks and the Federal Reserve is going to take much much more than these 897 words thus far to sort through. So looks like this is just the beginning of Federal Reserve week here at Reality Next.
Here is a link to a video on the Federal Reserve explained in 7 minutes.
I look forward to continuing with this conversation