Changes soon to come in global and United States monetary system from debt to asset backed currency as Mystery (Secretive) Babylon falls

Text portions below per Dr. Stephen Jones Weblog Nov. 24, 2018


A change of money
Nov 24, 2018
When the Federal Reserve Bank was chartered in 1914 following the Federal Reserve Act in December of 1913, Congress gave up its power to create money and gave it to “the experts,” the big banking interests. Throughout the late 1880’s the big political fight was about keeping control of the nation out of the hands of the bankers. In 1913 the banks won; the people lost.

Instead of the US Treasury creating money as needed and spending it into circulation without debt, the Treasury now had to borrow it into circulation. There was a fixed amount of money in circulation at the time, and with a growing population and economy, more money was needed to keep the economy running smoothly.

Taxes could fund the government, but taxes took money out of circulation, creating a shortage for the people. The only way to make up for this was to borrow from the Fed (at interest) and spend the money into circulation. To pay back the loans, more money needed to be created out of nothing, borrowed from the Fed, and spent into circulation. That, of course, follows the classic definition of a Ponzi scheme.

The Federal Reserve system was set up to enrich the bankers in the short run and to implode in the end, after the people and the nation itself were so far in debt that they could not pay back their loans.

We are nearing that point today. We actually reached that point in 2008, but when the Fed lowered interest rates to zero, it bought us some time. In fact, banks and corporations increased their debt load by borrowing more, since they could afford zero interest rates. But more recently, the Fed began raising interest rates again, and now the increased level of debt is becoming a problem again.

The Federal Reserve Board talks about a “neutral” rate of interest, where the rate neither harms nor benefits the economy. That is their supposed goal, although they seldom find themselves at that neutral spot. Either the rates are too low, causing a spike in debt and inflation, or the rates are too high, causing recessions and bankruptcies.

In 1980 the Fed raised interests to about 18 percent to find that “neutral” spot. Actually, they went above it, causing a recession.

In 1987 the Fed raised interest rates to 10 percent to find that “neutral” spot. They caused another recession.

In 2001 the Fed raised interests to 6 percent to find that “neutral” spot. Another recession occurred.

Now the Fed’s projection of the “neutral” spot is about 3 percent.

Do you see a pattern here? As time passes, the “neutral” spot is lower and lower. In other words, the economy is going further and further into debt, and so the economy cannot handle higher interest rates before it collapses.

Last Edited by ChivalryKnight on 11/26/2018 10:04 AM