Ron Paul On The Great Bank Robbery

http://thisismylife.co.uk - People really have a funny opinion about banks. They think somehow theyre great conservative institutions after all, they have a lot of money and they spend some of it decorating their bank buildings in a very serious décor; bankers usually dress well, they wear suits and ties, and they have serious expressions on their faces.

In fact when you really look at what banking is as its practiced today its one of the greatest scams. Were talking about the fact that the banks create money out of nothing, and then they collect interest on it. Now thats the basic scam.

Heres how it works. Lets say that the government needs to have much, much more money to spend than it is taking in in taxes. Politicians like to spend money because the more they spend for benefits, for the voters, the more votes they get. How can you spend more money than you take in?

The answer is very simple: you borrow it. Well, thats the same with you and I if we want to spend beyond our income, if we have some credit we can go to the bank and borrow money. Well, that works for a while but sooner or later the loan has to be paid back plus interest. And so, you and I can do that only for very short periods of time. But in the case of the government, its unlimited amounts of time.

Now, the money that comes from the private sector you and me and savings institutions, retirement plans, other countries, and so forth that money is already inexistence but theres never enough of that. They need more the government needs more than what they can get from people who already have money to lend to them. And so now, the spillover comes when they want more than they can get that way they go now to the Federal Reserve System.

And by prior agreement, the Federal Reserve will create whatever amount of money is necessary at that point. That takes care of the government, why are the banks in this thing?

Well, lets follow that money, that was created out of nothing for the government and see where it goes. It goes into the private banking system. Lets take $1000, for example, that has been paid to a postal worker who delivers our mail. Hes working for the Federal government. Now, hes got $1000 in a pay check that came out of that billion dollars that was created out of nothing and presented to the Federal government. So now were just going to trace a thousand dollars of it that comes to the postal worker. Hes got a paycheck now, he doesnt imagine that that money didnt exist a moment ago or yesterday, and he doesnt care, it looks like a good check to him banks will accept it, everybody will cash it. So he takes it down to his local bank at the end of the street there and deposits it into his account.

Now if I were a president of that particular bank that got that deposit, I could in a sense go to the people out there in the bank lobby and say: Attention, everybody, I have some good news. This gentleman here just deposited a thousand dollars into our venerable bank. And thats good news, because a lot of people in the bank are there to borrow money, so they know when the bank has money to loan that usually means lower interest rates. So somebody might ask me, well, how much did this person deposit? And I would say, he deposited $1000.

And then this person would say: Well, thats not enough, I want to borrow $9,000 on this car Im looking at, and $1000 isnt going to cut it.

And I would have to say when hes talking to the depositor in the bank, dont worry about it, this banking business is more complicated than you can possibly imagine. We can lend you the $9,000, even though we only had $1000 deposited.

And if anybody asks how is that possible, the answer is: dont worry about it, its possible, its legal, we can do it. We create the extra $9,000 out of thin air. The $1000 is deposited and we can create up to $9,000 on every $1000.

A Second Look at the Federal Reserve: http://moneysoft.blogspot.com/2008/02/killing-fed-part-one.html

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[MetalManDan7]

RON PAUL for 2012! im canadian so i dont matter... but i have to say the world would be a FAR BETTER place with Ron Paul as President.

[ggwally]

They don't get any more honest than Ron Paul!

[jacobosmak]

Time will prove Ron Paul right.... with no help from any media... Ron Paul a man before his time!

[MirageScience]

@shano4241 Well I contends that we dont need government for: regulation, roads, parks, schools, drugs, welfare, population defence, civil right defence, consumer protection, enviroment protection (such as putting toxins in water), legal code (including penalties), banks, currency, contract inforcement, and property defence. (may be missing some)

If you disagree pick and choose one or a few, and I should be able to argue a point that you can see, since you are for limited government.

[shano4241]

@MirageScience I agree that we shouldnt give an ounce of liberty for security and the war thing was just an example...there are things that need a federal govt but the govt has taken over pretty much every aspect of our lives and needs to be reigned in

[MirageScience]

@shano4241 If some all the "representatives" unanimously decided to go to war, they would still have no legitimate claim on making me go to war, even if I had been prepared to defend my people. It is me and me only that decideds when I use violence, or complete any other action, whether it be eating or dancing. Peoples rights can still be easily defended on relative polylegal voluntary grounds, which is exactly why you shouldnt give up an ounce of liberty for any amount of security.

[MirageScience]

@shano4241 there is no reason what so ever for states not to uniformly defend eachother, expecially in the case of knowing that if after one goes down, then there will be another. Again no reason. The same would be true if there was no state at all, in which case people would see populations being attacked, and predict they that could be next, in which case they would help defend against an attack. There is also no need for a united anything to declare war for everyone...

[shano4241]

@MirageScience I hope your not serious...but if you are... The reason for govt. is to connect the states for unity...i.e. if someone declared war on us then we have to have a united congress to declare war. (imagine if individual states had to send ppl to war seperately) and there are many examples of why we need a few things nationalized BUT only if absolutely needed and a govt. is there to protect the ppls rights if a state goes rogue...but it needs to stay in checks and balances

[666Edu666]

These people are impressively smart thumbs up.. This guy could be a president or THE P...