Did you see the picture of how the America poor people live? Our economy is real bad because we have a problem in our system. That is Federal Reserve. Our money is not a base on a real thing. That is just base on law or thin air. Because of this, that will create a huge inflation. Second is, no matter how we have much of money. We always have a debt rising because the money supply is based on the debt. After the great desperation, the Federal Reserve recognized that was they did it.
Our money just prints it out by thin air. If our United Stated government want some money, such as it is a one million. Our Federal Reserve will buy a national bond. Next, Federal Reserve will print one million dollars to the United Stated government. That national bond is just a debt because we need to pay back the one million and the interest to the Federal Reserve. Where are the one million dollars come from with the Federal Reserve? Nowhere, they just print it, which it just prints it out with thin air. Our constitution said our money only can print it out and manage by the congress, not a private company which it called Federal Reserve. That money can print out very fast and easier, and that is not based on producing the product or any serve. What happen if our money is not printed out by the producing the product or server? Because we just print it out, the money becomes much less relationship with our product and serves. In 1913‘s the value of one U.S. dollar equals the value of 2007‘s 21.6 U.S. dollar. It is the 97% devalue of its value since the Federal Reserve came in 1913.
As the first paragraph said the fed will buy a nation bond in order to supply or print the money in order to give the money to government. We know that bond is a debt, and the money of the debt come from nowhere. Fed just created it, and because that is a debt. Therefore we need to pay back the money. Therefore the money creates by a debt. That is how money creates or how money supply. The money creates by a debt. And debt is money. Our money supply is based on debt, so if everyone can pay back the debt to the Federal Reserve. There will not have money supply or a circulation. How can we or our nation has a debt free? What happen if we can’t pay back the debt? No, we can’t have a debt free ,and that is how our economic system works.
Many have since agreed with Friedman and Schwartz’s theory, including current Chairman of Federal Reserve Ben S. Bernanke, who said: “Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.” said by chairman of Federal Reserve. We won’t do it again… How many people suffered a great painful in the great desperation? Between the 1914 to 1919, the fed increased 100% of the money supply. Money is a debt. That made many small bank and people increased the debt. Many bank and people need to pay back the debt which from the Federal Reserve. And at the begin year of the great desperation 1920, the federal lowed a lot of the money supply, so the small bank need the public people to pay back the loan which from the small bank. Public people don’t have that much money to pay back the loan. 5400 small banks bankrupted and crumbled which outside of the fed. “We won’t do it again” said by the chairman of the fed.
How many people don’t have home and enough food in the United States? How many father or mother doesn’t have enough money to feed their children? It is time to shut down the fed. I think the real problem of the fed is the people. Because fed people are people. If our people do anything just base on desire, any system we have just based on the desire, which just like the fed.