UPDATE - I replaced the previous chart from this original post with the most recent chart from 2008 to show PMAFT exactly what I'm talking about. As you can see, Federal Reserve holdings of the debt are just under 50%.
People can be easily confused when they try to undertake a little research into how and why the economy is in the dumps and we are in the beginning stages of the Great Depression 2.0.
It all looks and sounds so complicated.
But it really isn't...if you know some basic principles to understanding exactly how our system is set up, the answer as to why we are in dire economic straits becomes quite easily discernible.
To put it simply - the reason why we are in a world of economic shit right now is basically and fundamentally caused by changing the CONCEPT of what money is in people's mind.
It used to be that for a person to make a big ticket item purchase, people SAVED their money until they could finally afford it.
Money was something you worked for, earned, and saved to use to acquire the things.
When money was understood to be an exchange certificate for a valuable commodity like gold or silver, people understood that it took a lot of work and effort to earn and save up enough money to buy yourself a big ticket item.
Money = medium of exchange for goods and services. Earn it, save it, and spend it wisely.
That's what it used to mean.
You know what money means nowadays?
Money = DEBT.
Voluntary serfdom, which gives you the illusion of freedom, but keeps you bound to your overlords just as effectively as the Feudal system of the medieval period.
The banks who issue you your credit cards, give you your auto loans and your mortgages, they are establishing a claim to your labor, your efforts, and your very livelihood for the rest of your productive, adult-working life.
Money = Debt is the very foundation of our current system.
But the people in charge, the elite banksters who are in effect our Feudal overlords, have a vested interest in ensuring that most people never see the man behind the curtain, pulling the levers. So, just like their fiat currency is created out of thin air, so too is the reality they seek to portray to the average citizen is a fiat reality - an artificially created "reality" of how the monetary system works.
While I was in the waiting room at the doctor's office the other day, I grabbed an old TIME magazine off the coffee table to read something to pass the time. It was the TIME's Person of the Year 2009 edition, featuring Fed Chairman Ben Bernanke.
In the article, I found a paragraph that basically confirmed that money = debt:
The Fed's central function is its dual mandate to steer the economy toward stable prices and maximum employment through monetary policy. To rev up a weak economy, it can lower interest rates by buying Treasury bonds or other safe securities, essentially printing money and dumping it into the banking system with a mouse click.
There it is folks. This is precisely what FIAT CURRENCY is. Of course, read all 5 pages of the TIME magazine article, you will not find one stray hint or mention of the word FIAT.
So...the Fed "buys Treasury bonds or other safe securities" which results in "printing money and dumping it into the banking system with a mouse click.
What, precisely is being done when the Fed buys Treasury bonds?
Treasury Bonds....future claims to the US Federal treasury. See how this works? The FEDERAL RESERVE "prints" money with a mouse click by buying treasury bonds...certificates redeemable for tax payer money, plus interest in the future.
For example (a very simplified example for the sake of clarity here) If the Fed "buys" a 10 year $100 Treasury Bond for $75 today, "bought" with it's fiat currency ("printed" with a mouse click), that represents a debt of the principle plus 25% interest the American tax payer "owes" the federal reserve in 10 years.
You know how you always here about the public debt in the news media? What you never hear is who exactly owns this debt and how much. The Federal Reserve is often called "Quasi-Governmental agency" and the debt owed to them for their "fiat currency mouse-click printing" services is officially called "Intra-governmental debt. This is a half-truth -- the most effective lies always contain some truths to it -- because the real truth is that the central banks that make up the system in the US are privately owned. It's only "quasi-governmental" because it was created by the 16th amendment to the US Constitution - the Federal Reserve Act signed into law by Woodrow Wilson in 1913. If you read The Creature From Jekyll Island, you'll learn about how the guys behind the 16th amendment were the same guys connected to the same guys behind feminism and women's studies (the Rockefellers, Warburgs, and Rothschilds). This is precisely why I believe in the "conspiracy theory of history."
So how much do We the Sheeple owe the Federal Reserve for their mouse-clicking services?
3.851 trillion dollars of the national debt is owed to the Federal Reserve...45% of the estimated 8 trillion dollars of debt.
Got that, folks? Almost half of the "national debt" that you always hear about in the mainstream media news is owed to the Federal Reserve for their mouse click printing services. Our money is debt based from it's very source. Every time the Fed "prints" money, we owe them interest for their "service."
The moment the Federal Reserve "prints" any more money, the national debt increases.
Money = Debt is our systemic reality.
So who is our 21st century Feudal overlords? Those who own our debt.
Give me control of a nation's money and I care not who makes her laws. - Mayer Amschel Rothschild