Billions in Interest Owed to Private Banks
We shall start with the need for money. The Federal Government, having spent more than it
has taken from its citizens in taxes, needs, for the sake of illustration, $1,000,000,000.
Since it does not have the money, and Congress has given away its authority to
"create" it, the Government must go to the "creators" for the $1
billion.
But, the Federal Reserve, a private corporation, does not just give its money away! The
Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal Government
in exchange for the government's agreement to pay it back -- with interest. So Congress
authorizes the Treasury Department to print $1,000,000,000 in U.S. Bonds, which are then
delivered to the Federal Reserve Bankers.
The Federal Reserve then pays the cost of printing the $1 billion (about $1,000) and makes
the exchange. The government then uses the money to pay its obligations. What are the
results of this fantastic transaction? Well, $1 billion in government bills are paid all
right, but the Government has now indebted the people to the bankers for $1 billion on
which the people must pay interest!
Tens of thousands of such transactions have taken place since 1913 so that in 1996, the
U.S. Government is indebted to the Bankers for more than $5,000,000,000,000 (trillion).
Most of the income taxes that we pay as individuals now goes straight into the hands of
the bankers, just to pay off the interest alone, with no hope of ever paying off the
principle. Our children will be forced into servitude.
But wait! There's more!
You say, "This is terrible!" Yes, it is, but we have shown only part of the
sordid story. Under this unholy system, those United States Bonds have now become
"assets" of the banks in the Reserve System which they then use as
"reserves" to "create" more "credit" to lend. Current
"reserve" requirements allow them to use that $1 billion in bonds to
"create" as much as $15 billion in new "credit" to lend to states,
municipalities, to individuals and businesses.
Added to the original $1 billion, they could have $16 billion of "created
credit" out in loans paying them interest with their only cost being $1,000 for
printing the original $1 billion! Since the U.S. Congress has not issued Constitutional
money since 1863 (more than 100 years), in order for the people to have money to carry on
trade and commerce they are forced to borrow the "created credit" of the
Monopoly bankers and pay them usury-interest!
Save our U.S. Constitution index
Last Updated on 04/23/98 by Darren Perkins 