So what is a central bank? A central bank is an institution that issues and regulates the currency to an entire nation. Based on a historical presented the typical powers inheritance central baking practice include the control of interest rates and the expansion and contraction of the money supply itself. Now the central bank does not simply issue the money to the government it loans it to them with interest then through the mechanisms of increasing and decreasing the supply of money the central bank essentially regulates the value the currency issued. It is critical to understand that the entire structure of this system can only produce one thing in a long run debt it doesnt take a lot of ingenuity to figure this scam out for nearly every single dollar produced by both the central bank and its regulated commercial banks is loan at interest that means every dollar produced is actually the dollar Plus a certain percentage of debt based on that dollar and since the banking system has the monopoly of the production of the currency and they loan each dollar out with the immediate debt attached to it. Where dose the money to pay for the debt come from? It can only come from the banks again which means the banking system has to perpetually increase its money supply the temporarily cover the outstanding debt created which in terms that new money is loaned out with interest as well create even more debt! The end result of this system is essentially slavery for it is technically impossible for a government and thus the public to ever come out of the self generating debt.
Posted on: Tue, 04 Mar 2014 03:39:29 +0000
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