3 Financial Forces Kept Alive By The Federal Reserve
3M0-212 As many of you know, major changes have occurred in the US and throughout the world since the Federal Reserve was formed in 1913. Due to its establishment, 3 extremely harmful problems have been persistent, continually robbing the poor to feed the rich. Let us now reveal the true colors each of them have.
The first force the Federal Reserve sustains is what many hate and that would be taxes. Before 1913 when the Federal Reserve was formed, the first income tax was only implemented in 1862 to fund the Civil War. Subsequently, income tax was rejected in 1895 because of the heavy burden it could bring to the people, especially those who are poor. However, despite this, income tax was implemented in 1913 to capitalize the US Treasury and Federal Reserve, allowing the rich to rob the poor and get richer legally.
The second force kept alive by the Federal Reserve is debt. This is because formation of the Federal Reserve allows politicians to borrow money from it instead of increasing taxes. Here, money is created when US Treasury sells bonds and the Federal Reserve buys them, printing the money subsequently. Until today, the US government has incurred much debt and owed huge amounts of money to the Federal Reserve. The Federal Reserve simply leeches the US government today like a zombie through compounding interest payments it receives through its printed money. Every time the US government money borrows money, the more interest it receives and the weaker America will become.
3M0-211 The problem here is that the government is simply delaying tax hikes which eventually have to be implemented because money has to be raised to pay for the interest owed. Otherwise, more money will have to be printed for paying interest by selling more US Treasury bonds. Both scenarios simply lead to inflation which acts like a silent tax eroding the purchasing power of currencies.
3M0-600 The third force would be inflation as briefly mentioned above. It is engendered when the US Treasury and Federal Reserve borrowing and printing money respectively, increasing money supply. This will cause more money to chase after the same amount of goods and services, pushing up prices. One rarely mentioned note here would be that people who print money can buy goods with the new money at a lower price as prices take time to adjust and rise.
Hence, to conclude, with such inequity and policies strongly favoring the rich, it is vital that we understand the relationship between taxes, debt and inflation. I believe they will be key to our survival tomorrow and those who know it well will definitely thrive.
The first force the Federal Reserve sustains is what many hate and that would be taxes. Before 1913 when the Federal Reserve was formed, the first income tax was only implemented in 1862 to fund the Civil War. Subsequently, income tax was rejected in 1895 because of the heavy burden it could bring to the people, especially those who are poor. However, despite this, income tax was implemented in 1913 to capitalize the US Treasury and Federal Reserve, allowing the rich to rob the poor and get richer legally.
The second force kept alive by the Federal Reserve is debt. This is because formation of the Federal Reserve allows politicians to borrow money from it instead of increasing taxes. Here, money is created when US Treasury sells bonds and the Federal Reserve buys them, printing the money subsequently. Until today, the US government has incurred much debt and owed huge amounts of money to the Federal Reserve. The Federal Reserve simply leeches the US government today like a zombie through compounding interest payments it receives through its printed money. Every time the US government money borrows money, the more interest it receives and the weaker America will become.
3M0-211 The problem here is that the government is simply delaying tax hikes which eventually have to be implemented because money has to be raised to pay for the interest owed. Otherwise, more money will have to be printed for paying interest by selling more US Treasury bonds. Both scenarios simply lead to inflation which acts like a silent tax eroding the purchasing power of currencies.
3M0-600 The third force would be inflation as briefly mentioned above. It is engendered when the US Treasury and Federal Reserve borrowing and printing money respectively, increasing money supply. This will cause more money to chase after the same amount of goods and services, pushing up prices. One rarely mentioned note here would be that people who print money can buy goods with the new money at a lower price as prices take time to adjust and rise.
Hence, to conclude, with such inequity and policies strongly favoring the rich, it is vital that we understand the relationship between taxes, debt and inflation. I believe they will be key to our survival tomorrow and those who know it well will definitely thrive.
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