Did you know that? The United States Government cannot print its own money. It borrows money as a loan from the Federal Reserve, which is a private bank with its own investors. The thing with the Federal Reserve is that it is the only bank that can print money, so there is absolutely no possible way that our government can pay back the loan.
There are billions of dollars in circulation, but for the sake of this discussion let’s say that there is just 1 billion dollars currently printed in the US. To get that money printed under the current system, the US government had to borrow the money from the Federal Reserve which can print however much they want because it isn’t actually backed by anything. Let’s even say that Government got the loan at an extremely low interest rate and only has to pay $10 interest on it every year. Once they took possession of the money, the US government will never be able to pay off that loan because all that exists is that 1 billion dollars. The only way to get the additional $10 is to borrow more money from the Federal Reserve. It creates a never ending cycle of expanding debt owed to a handful of private citizens.
That is what they mean when you hear people say that we have a debt-based economy. All of the “money” that we use in the US every day is actually a piece of the debt that our Federal Government owes to the Federal Reserve.
Now that the US government has doubled the amount of currency in the market in the past 24 months, some experts are saying that the system is nearing the point of collapse.
In case you haven’t heard yet, Mike Dillard is hosting a webinar about this and other things that are going on with the economy right now and what he is doing to protect his money. The best thing that you can do for yourself right now is get the information about what is going on so that you can make some educated decisions about what to do for yourself.
Wayne Woodworth
