By 2008, the housing market's collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.
While the bankers may wear suits and appear respectable, they are actually looking to use your deposits to make themselves ten times wealthier while at the same time enslaving you in the debt that they create out of nothing whenever you become a borrower.
It works like this:
As an aspiring bankster, I set up a bank, and invest $1,000 of my own cash. Then I 'lend out' $10,000 to someone, either for consumer spending or to invest in his business. How can I 'lend out' far more than I have? Ahh, that's the magic of the 'fraction' in the "fractional reserve': I simply open up a checking account for Mr. Jones on my bank's computer and I type in the amount of $10,000, into Mr. Jones' account, which I am then happy to "lend' to him, since I just created the money out of thin air as I typed it into his account. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would if those savers actually lent Mr. Jones the money they had just earned and saved. I don't have to save up the money myself, but can simply (almost like counterfeiting) create it out of thin air. Since demand deposits at the modern bank function as equivalent to cash, the nation's money supply has just, by magic (as with counterfeiting) increased by $10,000. This inflationary, quasi-counterfeiting process is under way, at full speed, at every bank in the nation. No wonder a dollar buys ever less (of most goods & services) with each passing decade.
However, while the money you borrow from a bank is created out of nothing, you must actually produce real goods and services, to earn real money, to use to pay back the bank, plus interest. In short, they loan you what amounts to counterfeit money, and you pay them back with real money. What a great racket -- for them. That's how banksters become phenomenally wealthy (at our expense). Of course, the largest banks, which most likely own shares of the Fed as discussed earlier, make the most money from this racket. And it amounts to hundreds of billions of dollars every year -- transferred, by this racket, from we the people, to them.
When banksters create money faster than the economy grows, the purchasing power of the dollar naturally declines, which is known as inflation. No wonder that each year Americans work harder, for less money (reduced purchasing power), than the year before. It's all thanks to the Fed's clever racket and the criminally inflationary bankster policies that are behind this racket.
How could we force the Federal Reserve banksters to compensate us for the recession they played a big role in causing?
As people like Ellen Brown, Dennis Kucinich, Ron Paul and Bill Still have been telling us (here, here, here, and here, respectively) for quite some time, we must get Congress to take over the Fed and merge it with the Treasury Department. (A very tall order, I know, but there is no other solution except for, perhaps, the financial transaction tax described below, which would probably be equally difficult to implement.)