Selasa, 09 April 2013

3 financial Forces kept alive by the Federal Reserve

As many of you know, major changes have occurred in the United States and around the world since the Federal Reserve was created in 1913. Due to its Constitution, 3 extremely harmful problems were persistent, continuously robbing the poor to feed the rich. Let’s now reveal true colors have each of them.

The first force that supports the Federal Reserve is what many hate and which would be taxes. Before 1913 when the Federal Reserve was founded the first income tax was implemented only in 1862 to finance the civil war. Later, income tax was rejected in 1895 because of the heavy burden that could lead to people, especially those who are poor. However, despite this, income tax was implemented in 1913 to capitalize on the Treasury and the Federal Reserve, allowing the rich to rob the poor and enrich themselves legally.

The second force kept alive by the Federal Reserve’s debt. This is because the formation of the Federal Reserve allows politicians to borrow money from it, rather than raise taxes. Here, money is created when the u.s. Treasury sells bonds and the Federal Reserve buy, print the money later. To date, the Government of the United States claimed much debt and owe huge amounts of money to the Federal Reserve. The Federal Reserve simply Leeches the Government of the United States today as a zombie through interest capitalization that receives through its printed money. Whenever the money of the Government of the United States borrows money, more interest in receiving and America weaker they will become.

The problem here is that the Government is merely delaying tax hikes which ultimately must be implemented because money must be raised to pay interest on debt. Otherwise, more money must be printed to pay interest by selling more Treasury bonds. Both scenarios simply lead to inflation that acts as a silent, eroding the purchasing power of currencies.

The third force would be inflation as briefly mentioned above. It is raised when the Treasury and the Federal Reserve printing money and loans, respectively, increase the money supply. This will cause more money chasing the same amount of goods and services, pushing up prices. One of which rarely note here would be that whoever prints money can buy goods with the new currency at a lower price as prices take time to adjust and laughed.

So, in conclusion, with this iniquity and strongly favoring the rich policies, it is vital to understand the relationship between taxes, debt and inflation. I think that will be the key to our survival and tomorrow who knows well will prosper.

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