Who Controls All of Our Money?

Summary

In this ColdFusion video, the creator dives deep into the workings of the global financial system, uncovering the truth behind money creation and control. Starting with a historical perspective on central banking, the video explores the origins of the Federal Reserve, its secretive formation, and the power it holds over economies worldwide. It also explains how money is essentially created from nothing, leading to inflation and economic instability. With a focus on debt-based monetary systems and the implications of fiat currency, the video challenges viewers to question the system and encourages further research into alternative solutions like cryptocurrencies and gold.

Takeaways

• 😀 The origins of modern central banking can be traced back to 1694 when the Bank of England was created to provide loans to the government.
• 😀 The Federal Reserve System in the United States was secretly created in 1913 by a small group of influential bankers and government officials, with the aim of consolidating financial power.
• 😀 The Federal Reserve can create money from nothing by writing checks that are not backed by any actual funds, a practice that is legal but would be considered fraud for individuals.
• 😀 The US dollar, since 1971, is no longer backed by gold and is instead considered 'fiat currency,' relying solely on trust in the government and the economic system.
• 😀 Central banks, like the Federal Reserve, are able to manipulate the money supply and interest rates, creating economic booms and busts at will, impacting the entire global economy.
• 😀 Inflation, caused by the constant creation of new money, dilutes the value of currency over time, leading to rising prices and lower purchasing power.
• 😀 Debt is integral to the current monetary system; banks create money by extending loans, and this money comes with debt attached, leading to a debt-based economy.
• 😀 Central banks can create money out of nothing and lend it to governments and banks with interest, effectively consolidating economic power in the hands of a few.
• 😀 Despite the negative consequences of central banking, including inflation and economic instability, the system has been perpetuated due to lack of public awareness and understanding.
• 😀 Alternatives to the current system, like cryptocurrencies (e.g., Bitcoin), gold, and silver, are gaining popularity as people seek to escape the debt-based economic system.
• 😀 The Federal Reserve, while controlling the US money supply, is independent and unaccountable to government oversight, giving it immense power over the economy.

Q & A

What is the main issue with the current financial system as discussed in the video?

The video argues that the current financial system is controlled by central banks and commercial banks that create money out of nothing, leading to debt-based economies, inflation, and inequality. This system benefits the few at the top, while the rest of society suffers.

Who controls the money supply, according to the video?

The video explains that the money supply is controlled by central banks, specifically the Federal Reserve in the United States, which creates money from nothing and loans it to the government with interest. Commercial banks also contribute by creating money when they issue loans.

How did the Federal Reserve come into existence?

The Federal Reserve was created in 1913 after a secret meeting at Jekyll Island, where a group of bankers and government officials, led by Senator Nelson Aldrich, drafted the Federal Reserve Act. The public was misled about its true purpose, which was to centralize control over the money supply and benefit the wealthy elites.

Why was the creation of the Federal Reserve kept secret?

The creation of the Federal Reserve was kept secret because the American public was strongly against the idea of a central bank. The bankers and politicians feared that if the public knew about their plans, the Federal Reserve Act would not pass. They used deception to make the bill appear less harmful.

What was the original purpose of the Federal Reserve according to its creators?

The creators of the Federal Reserve claimed that it would stabilize the economy and prevent the dominance of Wall Street banks over the country. However, the video suggests that it was designed to give a small group of people the power to create money and control the nation's finances.

What is fiat currency and how does it work?

Fiat currency is money that is not backed by a physical asset like gold or silver, but rather by the government's decree that it is legal tender. The video explains that since 1971, the U.S. dollar has been fiat money, meaning it is only valuable because people trust the government that issues it.

How does the Federal Reserve create money?

The Federal Reserve creates money by writing checks that are not backed by deposits. This means that when the Fed writes a check, it essentially invents new money, which is then used for government expenses or loans to commercial banks.

What role do commercial banks play in money creation?

Commercial banks create money by issuing loans. When a bank provides a loan, it doesn't use deposits from other customers but instead creates new money out of thin air. This is a core function of the debt-based monetary system, as it expands the money supply through lending.

What is fractional reserve lending, and why is it important?

Fractional reserve lending is a system where banks can lend out more money than they actually have in reserves. This practice allows banks to create money beyond their actual holdings, but it can also lead to economic instability as it increases the total debt in the system.

How does the video suggest we could fix the current monetary system?

The video suggests that a better system would involve governments issuing their own money, as President Abraham Lincoln attempted with the Greenback. This would eliminate the need for banks to charge interest on money that they create from nothing and could potentially prevent the inflation and inequality seen in the current system.