More than enough for the people of our country not to understand the banking and monetary system. Because if they understand, I am sure there will be a revolution tomorrow morning.” Henry Ford
THE BIRTH OF THE FED.
Everything started in April 1658 to January 22, 1971, a Scoltland banker, merchant named William Paterson.
Paterson began his career with the international trading company Merchant Taylors and in 1694 he began to establish the Bank of England and operate as the government's bank.
England at that time endured more than 50 years of war, its financial system was exhausted, and the government needed a source of funds to support political activities. Paterson proposed a loan of £1.2 million (equivalent to £27,880,000,000 today) to the British government. In return, the British government gave Paterson some privileges, including the privilege of issuing currency. The British government confirmed and approved that idea. And we see the first PRIVATE CENTRAL BANK in the world born.
With the private bank owned by Paterson, the British central bank, Paterson has the ability to issue and provide self-created loans (in other words, it is created from nothing) to the British Government and of course, it charges interest to the government.
Let's move to the 20th century, and move to the US, with 2 attempts to establish the US central bank to be able to print money themselves but failed. A politician, and leader of the Republican Party named Nelson Wilmarth Aldrich, came from a middle-class family of English immigrants to the US. Most people do not know about him, but what he did is of course still having an extremely brutal impact to this day.
In December 1910, Senator Nelson Wilmarth Aldrich secretly took 6 men on a train to a location that was of course also secret. The 6 men with the power to change the fate of mankind include: Paul Warburg, Frank Vanderlip, Benjamin Strong, Henry Pomeroy Davison, Charles Norton, and Abe Andrews.
They are the heads of banks, treasuries, heads of government agencies, and some of the richest people on the planet at that time. Let me tell you, these 6 people hold 1/4 of the assets and wealth of the entire world.
The meeting took place in secret from both the public and Congress, away from any prying eyes from the press. The meeting place was Jekyll Island, where tycoons such as the Rockefeller and JP Morgan families resided. Thus, the men who held 25% of the world's assets met under one roof. What did they do?
With a meeting lasting 9 days, they laid the foundation for the birth of the first PRIVATE CENTRAL BANK in the US. Later, it became the US Federal Reserve (FED).
The banks in the US have given false information to the American public about the purpose of this birth, which is to stabilize the economy and brake whenever Wall Street exceeds the limit on something. But why is it secret because when it becomes a reality, it will give a small number of people the right to create money from nothing (air) and lend it to the government.
These people needed something to fool Congress as well as the people, they drafted “The Federal Reserve Bill” and discussed its establishment. Of course, they had influential people in Congress to promote the passage of the draft. They continued to deceive the American people by providing information to the press saying that the draft to establish a central bank (the US Federal Reserve) was a destruction of the banking system, they acted like they were the ones at a disadvantage. “It would ruin the banks!” was the headline of many newspapers. Most people who read those newspapers thought that anything that was detrimental to the banks would benefit the people and the community. THAT was the Trojan horse that the American people accepted.
They continued to fool the US Congress by including laws in the draft to limit the power and remove some of Congress's rights over the central bank. And when most of the 535 members of Congress were on Christmas holiday at home, the draft was passed with 25/43 votes. And it was signed into law by newly elected President Woodrow Wilson (1913–1921) in 1913. Along with that was the monopoly for a small group of people with the power to print and create currency in the US. The draft “The Federal Reserve Bill.” was later changed to Federal Monetary Policy to give the power to issue currency to private banks. It is a license or certificate of the right to print money.
Today, the US Federal Reserve is the most powerful agency in the United States, and they are not ashamed to admit it. In a television interview, FED Chairman Alan Greenspan was asked “What is the exact relationship between the position of FED Chairman and the President?”. Greenspan replied “First of all, the FED is an independent agency, which means that basically no agency has the ability to influence it, so what the relationship is really doesn't matter”. In addition, the FED cannot even be investigated by any agency. WOW
Thus, the Central Bank started in England, then spread to the US, and returned to influence and reach Europe and the entire world with concentrated power and unification. Currently, in the world today, there are still countries without a Central Banking system, namely North Korea, Iran, Cuba. Until 2000, the list included Afghanistan, Iraq, Libya.
But look at what the US military is doing in the 3 countries above.
After World War II, the USD became the reserve currency worldwide. That means that all central banks in every country in the world must reserve dollars in the treasury, and it also means that all other currencies are protected by the dollar, so all people in the world have a relationship with the FED's currency system. Along with that, the Bretton Woods system was born in 1944, it is a system that stipulates that the dollar is backed by GOLD, one gold costs 35 US dollars. Meaning that a country's currency is reserved in USD but the printing of money depends on the amount of gold that country has, simply put, whoever has more gold has more money.
BUT unfortunately for humanity, everything has changed completely since 1971. When the USD was backed by the gold standard, the USD fell in price, and the amount of gold poured into the war in Vietnam was too large. The president at that time, Nixon, declared on television "I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold and other reserve assets", abolishing the gold standard, meaning that the printing of USD no longer depends on gold, print as much as you want.
Thus, you can see the history of the establishment of the FED with unrivaled independent power all over the world with Super Power, which is the ability to confidently print infinite money without having to ask anyone's opinion.
What brutal consequences does that lead to today?
Firstly, the USD is not backed by anything since the decision to abolish the gold standard, which means that all other currencies in the world are backed by the USD also means that it is not backed by anything except faith in the US government. Trust helps you exchange currencies back and forth with each other and with goods and services, on the other hand, it is something created by people's lack of understanding of the currency system as well as understanding of the forces that control the flow of money.
All that currency is called “Fiat Money” Fiat in Latin means “Let it be done”
Secondly, the FED's reckless printing of money has an impact on all Fiat money. The backing by nothing to all types of money leads to the fact that every time the FED prints money, it DILUTES THE MONEY SUPPLY of every country due to the reserve of USD in the treasury. Increasing the money supply to the economy is the cause of the devaluation of all currencies. I will explain in more detail below.
Thirdly, the fact that the FED is not supervised by any organization will lead to doing whatever it wants, and no one will know if it does anything wrong. The adjustment of lending rates such as easing or tightening by the FED has a great impact on the economy.
But the question here is whether the US government is stupid enough to print a lot of money itself, creating inflation for its own USD? Actually no, here I do not want to analyze deeply because it will be very long, I will introduce you to the film by author Mike Maloney talking about the history of currency, how the US government prints money itself, how they cheat and deceive the whole world, this is part 4 of 8 parts.
Let me reveal to you that the US is the country that exports inflation to the whole world.
When I or you write a check, you must have enough money in the account to cover that check, but when the FED writes a check, it does not need to have a deposit in the bank to be written. And when the FED writes a check, it creates money” Public Services Department, Federal Reserve Bank of Boston, 1984.
Thus, when the FED writes a check, it will create money in the account without any proof. Ridiculously, it is a legitimate currency for buying and selling in the economy, and another part of creating money that cannot be ignored is commercial banks. Every time you borrow money from the bank to shop, do business, they simply create electronic numbers and add it to your account and of course, interest rates are indispensable. (Surely many of you think that these numbers they take to lend to you are from other people's deposits, I'm sorry, please watch Mike's film that I just introduced)
The role of the FED in modern times
After 2008, the FED not only bailed out banks but also became the largest bond buyer in the US, distorting the entire financial market through QE (Quantitative Easing), buying assets with newly printed money to pump into the economy.
The FED currently holds more than 7 trillion USD in assets, from government bonds to MBS (Mortgage-Backed Securities), which shows that their role is no different from a "super investment bank" with the power to manipulate global asset prices.
"Each and every time a bank makes a loan, new bank credit is created — new deposits — brand new money." Graham F. Towers, governor of the Central Bank of Canada (1934 to 1955)
Thus, basically, every time a bank creates a loan, they do not need a deposit from anyone to lend you, they simply create numbers on the computer. 97% of the money is created like that, only 3% is paper money and the coins that we carry. A great thing is that they can lend 10 times the amount of reserves they have.
To make it easier to visualize, let's see what the FED has done over the years
The FED buys war bonds to finance the US government's war. This is a period of rapid money printing, creating the foundation for "self-printing money to serve national policies".
After the war, the USD was chosen as the global reserve currency through the Bretton Woods Agreement (1944).
1971: Nixon abolished the gold standard → USD became completely fiat money.
1973: Middle East War → oil prices increased 4 times → galloping inflation.
1980: Inflation reached 13.5%, the FED had to raise interest rates to 20% (the highest in history) to tighten the money supply → causing a severe recession.
2001: After the dotcom crisis, the FED lowered interest rates to 1%, creating easy lending conditions.
This pushed house prices up sharply → asset bubble.
Housing bubble burst → Lehman Brothers went bankrupt → the entire global financial system collapsed.
FED prints money to bail out: QE program begins → buying bonds with newly printed USD → pumping trillions of USD into the market.
2008–2014: The FED implements 3 consecutive QE packages, totaling more than 4.5 trillion USD pumped into the financial market.
Assets such as stocks, real estate, and gold increased sharply → but the poor were left behind, because money did not enter the real economy but flowed into speculative assets.
Covid-19 and the historical money printing (2020–2022): The FED launched an unlimited QE program, interest rates = 0%, buying corporate bonds, junk bonds.
40% of the total USD in circulation was printed in just these 2 years.
Federal relief package exceeds 5 trillion USD, creating global inflation (US inflation peaked at 9.1% in 2022 – the highest in 40 years).
To control inflation, the FED raised interest rates continuously from 0% to over 5.25% – the fastest increase since 1980.
Many US banks went bankrupt: Silicon Valley Bank, Signature Bank.
Impact spreads globally: USD exchange rate increases → countries have to raise interest rates accordingly → global debt peaks.
As of 2024, US public debt exceeds 34 trillion USD, equivalent to nearly 130% of GDP.
If the FED raises interest rates by just 1%, the budget has to pay hundreds of billions of USD more in interest.
This is the trap: The FED cannot not print money, but printing more leads to inflation → deflation leads to bankruptcy → stuck between two extremes.
The devaluation of the USD
As more and more loans are created, more money will be created, all the money in circulation in the world is decreasing in value. That is called INFLATION. Inflation is understood in another sense as an increase in the money supply. Let's see how the FED has destroyed the purchasing power and value of the USD.
The USD has lost nearly 100% of its value and purchasing power since the FED was established in 1913 until today 2019. The $2000 item you buy today could only buy a $100 item in 1913.
When you borrow money from the bank, there will be loans, and they will fill out the forms, which is the promissory note. For the banking system, debt is money.
"If there were no debt in the monetary system, there wouldn't be any money." Marriner Stoddard Eccles, U.S. banker, economist, member and chairman of the Federal Reserve Board.
Thus, instead of Gold being the backbone of the economy, it is now Debt. It is called “The Debt-Based Monetary System” It requires debt for the economy to function. Every country, almost everyone is getting more and more involved in debt. Let me reveal this to you, one person's debt is another person's asset.
The FED and central banks around the world have the right to adjust the money supply and also adjust the lending price, which is the lending rate. Look at the FED's interest rate adjustments during currency crises. there are many currency crises, almost no one is taught or knows but I will take 1 typical example is the housing crisis followed by the financial crisis in 2008.
In 2001, FED Chairman Alan Greenspan cut lending rates to 1% to overcome the consequences of the dot com bubble that occurred, and when lending rates decrease, it will encourage people to borrow money, when you borrow at low interest rates, you will save a lot on paying interest on mortgages. The chairman thought that it could create a stimulating effect on the economy, when people borrow more, they start buying houses, leading to a sharp increase in housing prices, people feel richer and earn more, the cycle starts running, borrow more to buy more, however, borrowing too much leads to a housing bubble when just a few people start defaulting.
What are the consequences it leaves behind? Surely you can know if you watch TV and the press. A terrible collapse, prolonged stress, frustration for many years later... weighing heavily on the American people when AIG is the company responsible for all the insurance of the American people going bankrupt. The US banking system went bankrupt: JPmorgan Chase went bankrupt, Citibank went bankrupt, Bank Of America went bankrupt, Goldmand Sachs went bankrupt... Europe, Asia, China, Japan went bankrupt, the world economy collapsed... Maybe you and I have not experienced it so we do not fully understand the 2 words Crisis and the Great Depression lasted terribly for many years.
The consequences have been there, but ultimately the people are the ones who bear the brunt, while no one in the banking industry has to go to jail or take responsibility for the things they caused. “Too Big to fail” is what FED Chairman Alan Greenspan said when talking about printing money to bail out the banking system.
Fiat Money and "the great deception"
It can be made clearer that "Fiat" is not just legal tender, but it represents a monetary system based on forced trust: The government forces you to use that money through taxes, fees, and laws, not because it has real value.
2020–2022 was the period of the most powerful money printing in modern history: 40% of the total USD in circulation was printed in just 2 years, increasing global inflation, disrupting supply chains and pushing asset prices to unrealistic levels.
Where is the world going, what will happen next?
First of all, let's thank the tycoons and forces that created one of the most important inventions, which is credit. Thanks to it, the economy has grown and developed as it is today. But of course, it will lead to cycles and of course it is development followed by bubbles, and recession. When it explodes, all that is left is more wealth for the tycoons and elites, and poverty and hard work to pay off debts for the people, look at the lesson of 2008.
According to the global debt monitoring report of the Institute of International Finance, global debt reached a record level of 250,000 billion USD in the first quarter of 2018, equivalent to 330% of the world's total domestic product. In other words, we can hold money without consuming every product or service produced on the planet for another 4 years and still not be able to pay off the debt. This is the loan of households, governments, businesses and financial companies. The form of borrowing of countries is issuing government bonds, businesses are bank debts, and corporate bonds. This debt increased from 149 trillion USD in 2007 to 250 trillion USD as of early 2018. Our debt will never stop.
Do you think we can pay off all the debts? The answer is never
With an economic machine operating based on Debt. And with the FED's plan to raise interest rates 3 times in 2019 and is expected to lower interest rates to prepare for the crisis, it will be a signal for the next crisis. In short, the FED's printing of money to bail out banks from previous crises + The value of the USD and other currencies almost lost value + The FED's adjustment of interest rates will be the premise for the upcoming credit crisis.
If you Google it, you will see that the cycle of crises is about 10 years.
And next you can clearly see the amount of money that the US government has printed out, in just less than 8 years, from 500 billion USD printed from 2009 to nearly 4.5 trillion USD, traders call it nearly X10. The more money supply is pumped out, the higher the prices of everything must increase to correspond to that amount of money.
What I want to say here is that the creation of credit and the thirst for credit will always create cycles, but this time it will be more terrible and brutal than the previous ones. It will be on a global scale because everything is expanding many times and everything is connected and related to each other to a much greater extent than a decade ago. Think and connect what I said above and what is happening at the present time.
USD is created as a tool for you to work hard for years to have a better life, but it will be taken away from you if you are not alert and chase an endless race. MIKE MALONEY has a great saying that “Wealth is not lost but it is transferred from one person to another” and “Wealth is your time and freedom”.
How to change those bad things? — The birth of BITCOIN.
The event happened to E-Gold in 2008, one of the first attempts to create an alternative currency based on the value of gold. Created in 1996, and by 2004 had reached more than 1 million user accounts, and peaked in 2006, the E-Gold system processed a transaction volume of over 2 billion USD a year. E-Gold is a cryptocurrency backed by gold and silver of the company Gold & Silver Reserve Inc. (G&SR) worth up to 71 million USD.
The US government arrested 4 leaders of the system and bankrupted the company for the simple reason that it did not have a license to create money and to trade. The US government could not even Shut-down the E-gold system, but they just needed to arrest the head of the system and stick to their mouths the words "not allowed" and the entire system stopped working.
And the answer was there and everything changed when in 2008. The year the global financial crisis happened, an anonymous programmer worked secretly, and found a solution to all the problems that people are facing. He wrote “Governments are good at cutting off the heads of a centralized network like Napster, but peer-to-peer networks like Gnutella and Tor seem to be unable to”
Satoshi Nakamoto embedded in the genesis block of Bitcoin the line: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
→ This is a declaration of war on the banking system that saves itself with the people's tax money.
Yes, the first decentralized currency system in human history has been born. As you know, that is BITCOIN.
Actually, most of you only know Bitcoin as a virtual currency when its value increases, but few people know that the reason for its creation is to replace the centralized banking system and overcome and solve the problems that the currency system is facing.
It was not created for fun. Let me explain it in more detail.
Firstly: A decentralized network must be a network without a head, it does not depend on or focus on anyone or any organization (including the person who created it), it is like a snake without a head, the government will not be able to do anything with Bitcoin like they did with E-gold. Decentralization, the fundamental important thing is that it will be like the 7-headed Hydra snake that you often hear about in Greek mythology, when you cut off 1 head, 2 heads will grow, basically the government cannot Shut-down the Bitcoin network. It is open source for everyone, the upgrade or development is done by all the smart people in this world who will rely on that open source to increase the power of the network.
Secondly: A peer-to-peer network does not need a third party to verify and ensure trust, because there will be no fraud. The algorithm does not need to create trust, it is always 1+1=2, it will prevent fraud like printing more money or double spending... or all the fraud problems that the banking currency system is facing.
Thirdly: One of the reasons why we become sheep is because people around the world do not understand the difference between currency and money.
Currency — fake money (represented by USD): is a medium of exchange, a unit of account, portable, durable, divisible, and fungible. Not backed by anything other than faith in the government. Easily printed out of thin air.
Money (Gold, silver) or currency backed by gold or silver: is a medium of exchange, a unit of account, portable, durable, divisible, and fungible, plus the ability to store value for a long time, difficult to create, the money supply is limited due to the limited quantity (gold, silver)
And finally, Bitcoin: it has all the characteristics of USD + Gold, but it has speed and fast transaction processing, and most importantly, it has the value of network power (except that it is not recognized by many governments yet).
We are all being deceived about the value retention of the USD. Its value is gradually approaching zero. Meanwhile, you can see that for more than 4000 years, the value of gold has been maintained and gradually increased until now. What makes gold valuable? It is its intrinsic value, as it is a rare metal, limited in quantity, and has a beautiful and sparkling color... So what about Bitcoin, it is not a material like gold, but behind it is ALGORITHM, network power, technological power. And another important thing is that the supply of Bitcoin is like gold, it is limited to only 21 million bitcoins, no one can create or print more. It is DEFLATIONARY, my friends.
Thus, in the event of a crisis, Gold and Bitcoin may be a refuge for everyone because of their ability to retain value over a long period. But I prefer Bitcoin when looking at the recent lesson from Venezuela. As you know, the terrible inflation crisis in Venezuela forced many people to flee abroad to avoid the crisis. They would naturally take their gold and valuables with them, but what was saved for their lives could not follow them when the government confiscated their gold at the airport. But Bitcoin is not like that, they cannot confiscate it from the people. Even if war destroys everything, after all, you can still restore your property intact when you remember the password and connect back to the network online. Everything is still there for you. No one can steal it from your hands.
That is the power and freedom of choice that has returned to the people
Historical milestones related to currency and Bitcoin:
2008: Global financial crisis
2009: Bitcoin is created
2013: Cyprus freezes bank accounts, Bitcoin pumps strongly
2020: Record QE money printing, Bitcoin rises from $5,000 → $60,000
2021: El Salvador declares Bitcoin as legal tender
2024: Bitcoin ETF is approved, more than 40 billion USD pours into the market
In conclusion, I want to say to you “This world needs healers more than successful and accomplished people”. War and the standards that the elite or we ourselves impose on each other have created an endless race with money. When you understand what is happening, remember this saying “Wealth is your time and freedom”.
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