The Hundred Billion Dollar Bill: Why does this exist

In the United States, the Federal Reserve Bank controls the value of money. The Federal Reserve owns and operates the Central Bank that controls and prints all the money in the entire country. For the privilege of printing the money for the country, all the citizens pays the Federal Reserve interest via taxes on all the money that they print.

The citizens also allow the Federal Reserve to manipulate interest rates on their behalf. However, just because it is called Federal Reserve does not mean that it is part of the Government or controlled by the Government.

The Central Bank is a privately owned institution they are best classified as private contractor. Their job is to print Federal Reserve Notes (FRN) or “Promissory Notes” otherwise known as Dollar Bills.

Why would the citizens pay a private bank to control its money? That's a great question. The United States Constitution gives that power to Congress. I have no idea why they would allow another organization to take that power. The Federal Reserve Act of 1913, which some say is unconstitutional gave the privately operated "Fed" sole power over printing money. This was also the same year first income tax law was passed enabling the government to tax a human's labor.

The "Federal Reserve" is a misnomer: it is not Federal, nor are there any reserves (see G. Edward Griffin's "The Creature from Jekyll Island," p. 1). They print money at will and loan it to smaller banks, who pay it back with interest. Since the Fed creates money out of nothing, it can loan it out at a low interest rate. Banks, therefore, can charge people slightly higher interest rates so they can buy homes, a bigger car, or start a business. 

This scheme of creating something out of nothing in unlimited supply then selling it to someone else creates inflation which drives prices up, and eventually makes everyone's dollar worth less. The inflation comes from having people pay something for nothing and what do they use to pay for it? The only thing they have, which is their own time used for labor.

Sadly, this monetary system is repeated across the globe in every country. Some country's like Zimbabwe for instance are worse than others at perpetuating this fraud and end up with extreme inflation in 2008 Zimbabwe inflation rate was a whopping 231,000,000%.


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