1913 was a brutal year for U.S. public interest. The Federal Reserve Act, and the 16th Amendment (federal income tax) both began transferring wealth from the public to the elite in 1913. So much money is needed to finance government debt created by private central banking, a personal income tax is demanded.
When you write a check to the IRS...notice the endorsement on the payment coupon: "Pay any F.R.B. Branch or Gen. Depository for credit U.S. Treas. This is in payment of US. oblig."
In other words, Pay the Fed.
Fractional Reserve Banking is another magical mystery machine for creating money from nothing, or as George Bush I blabbed:
"...the continuous consolidation of wealth and power into higher, tighter and righter hands."
Bush I was talking about the reason for Iran-Contra, but wealth consolidation is what power is all about. Power to the People is exactly what the Fed is not about.
One of the Fed's duties is regulating reserve requirements of member bank, currently 3% to 10%, depending....
Fractional-Reserve money creation, most simply: A bank at 10% reserve requirement gets a $100 deposit. The bank is allowed to lend $90 dollars of that deposit, so the original $100 dollars has become $190...and through subsequent lending, the bank may inflate the original $100 deposit into $1,000 dollars. A foundational transfer from those who create wealth, to those who manipulate wealth.
"Troubled Assets Relief Program"--taxpayers must relieve the global financial system of its bad bets. But....
How can an asset be "troubled"? People can be troubled, as upon learning festered secrets of private central banking. Indeed, private central banking reduces people to assets ripe for austerity. So doesn't "troubled assets" seem a better label for taxpayers than for bad bets?
The global financial system is a casino with private profit and public risk, thanks largely to something power keeps people from thinking about, much less understanding: Derivatives.
"Derivative" is a well-groomed way to say a side bet has been made on anything you might imagine. A Bloomberg article from October 18, 2011, described them this way:
Derivatives are financial instruments used to hedge risks or for speculation. They're derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates.
Often highly-leveraged, derivatives prowl a mostly-unregulated market dominated by international banks of the Too-Big...! variety. Irresistible roulette, derivatives are the wicked queen of casino finance.
Taxpayers on the hook for, officially...$700 billion--or was that $800 billion, officially, to bail out Too-Big...! banks? Remember the ephemeral public outrage? The image of Treasury Secretary Henry Paulson (between stints at Goldman Sachs) going down on one knee to beg Speaker of the House Nancy Pelosi to pass TARP before the world imploded--that image should be tattooed upon the mass American consciousness.