The Federal Reserve System Is A Massive Wealth Redistribution Scheme

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The Federal Reserve System Is A Massive Wealth Redistribution Scheme

During fiscal year 2012, $359,796,008,919.49 that had been forcibly extracted from American taxpayers was transferred into other hands.  Most of it ended up in the pockets of the global elite.  So what did the American people get in return for that 359 billion dollars?  Nothing at all.  No roads were built, no schools were constructed, no teachers were paid and none of it went to national defense.  It was simply interest that was owed on the national debt, and most of it just made the ultra-wealthy even wealthier.  But this is exactly what the Federal Reserve system was designed to do when it was created back in 1913.  It was designed to get the U.S. government trapped in an endless spiral of debt that would systematically drain the wealth of the American people and transfer it to the ultra-wealthy and the international bankers.  When most people think of a “wealth redistribution scheme”, they think of a government raising taxes in order to give money to poor people.  But the Federal Reserve system works in reverse.  Money is taken from all of us and it is redistributed to the global elite.  That is why a federal income tax was instituted the exact same year that the Federal Reserve was.  Money is extracted from all of us through taxation, and then it is transferred from the federal government to the ultra-wealthy through debt payments.

So what role does the Federal Reserve system play in all of this?

Many critics of the Fed focus on how much money the Fed makes each year, but that is a mistake.  The truth is that the Fed returns the vast majority of the money that it makes to the U.S. Treasury.  The Fed is not a money making machine itself.  Rather, it is a system that enables others to make hundreds of billions of dollars each year.

I think that it is easiest to think of the Fed as a “middle man” between the U.S. government and the global elite.  It was designed by the international bankers for the benefit of the international bankers.  The entire goal of the Federal Reserve system is to make the ultra-wealthy even wealthier.

The Fed is a privately-owned banking cartel that has a monopoly over money creation in the United States.  Nobody else, including the U.S. government, can print money.  So those that claim that “the U.S. government can print money” are just dead wrong.

When the U.S. government wants to spend more money than it has, it asks the Fed to make some more money.  The Fed then creates money out of thin air that did not previously exist.  Normally this money is not even printed up.  It is just entered into a computer.

In return for the new money, the U.S. government gives the Federal Reserve some U.S. Treasury bonds.  In essence, U.S. Treasury bonds are promises to pay back money.  But the U.S. government always agrees to pay back more money than it receives.  So a larger amount of debt is created than the amount of new money that is created.

When the Federal Reserve receives those U.S. Treasury bonds, most of the time they take them and auction them off to interested buyers.  This is how they get into the hands of the ultra-wealthy and the international bankers.

So how is the U.S. government ever supposed to pay back all that debt if the amount of new debt being created is always larger than the amount of new money that is being created?

Well, the theory is that the money will be able circulate through the U.S. economy really fast and that the federal government will be able to tax it enough times and at a high enough rate to be able to pay off the debt plus the interest.

But that never seems to work out, does it?

Instead, the federal government always finds that it can’t fund government activities and pay off the debt at the same time, so they always come back to borrow more.  That is why it is called a debt spiral.

So the debt just keeps getting larger and larger.  Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

And as the debt keeps getting larger and larger, so does the money supply.  And that is why we have such a problem with inflation.  Since the Federal Reserve was first created, the U.S. dollar has lost more than 96 percent of its value.

But the global elite are not just doing this in the United States.  They have established similar systems in almost every nation on earth.

So every year, gigantic mountains of money are transferred from taxpayers all over the globe into their pockets.

And that is the primary reason why they have so much money.

It has been estimated that the global elite have up to 32 TRILLION dollars stashed in offshore banks around the planet.

And that is just the money that we know about.

Are you starting to understand why people are so upset about this stuff?

Fortunately, people all over the world are starting to wake up to this massive wealth redistribution scheme.

The creation of money should belong to the people – not to the global elite.

Just consider a statement that Italian politician Beppe Grillo once made

“Whom does the money belong to? Who does its ownership belong to? To the State fine…then to us, we are the State. You know that the State doesn’t exist, it is only a legal entity. WE are the state, then the money is ours…fine. Then let me know one thing. If the money belongs to us…Why…do they lend it to us??”

Doesn’t that make sense?

If the currency of a nation belongs to the people of a nation, then why do we let the elite create our money out of thin air and lend it back to us?

Why do we continue to use a debt-based currency system that is making the global elite far wealthier at the expense of all the rest of us?

For much more on how the Federal Reserve works, please see my previous article entitled “10 Things That Every American Should Know About The Federal Reserve“.

Please share this article with as many people as you can.  I have tried to simplify things as much as possible in this article so that even people that have been through the dumbed-down public education system in the United States should be able to understand it.

So what do you think about the Federal Reserve?

Are you angry that hundreds of billions of dollars are being transferred from U.S. taxpayers to the global elite every single year?

Are you disgusted that money that is created out of thin air by the Federal Reserve is being used to bankrupt our nation and enslave future generations of Americans to trillions of dollars of debt?

Please feel free to post a comment with your thoughts below…

The Beginning Of The End - The New Novel About The Future Of America By Michael T. Snyder
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  • Tim

    It’s the greatest crime in the history of the world.

  • I think within the next 4 years the United States will declare bankruptcy. When they do, they will call in the entire currency to be exchanged for “new” dollars. I have no idea what the exchange rate will be. Probably $20 old currency will be $1 in new currency.
    I suggest the entire thing will be put on computers instead of $1 bills. The reason will be to defeat the great “underground” economy that pays no taxes on anything. To keep track of every dollar so that it is more difficult for drug transactions to take place and for drug money to be available. So that all forms of labor are kept track of.
    This government will then propose a universal credit/debit card that everyone must have in order to do business in this country instead of money in your pocket.

    That a world wide system of controlling all buying and selling that is restricted by a world government is described very well in Revelations is a remarkable piece of prophecy.
    It is very close to being put into place.


      i believe you to be right!!!

    • This is why when my business does well enough I’ll be incorporating in another country and will keep my money in another currency other than the US $ and I’ll invest in other countries. I’ll probably leave the USA too.

    • LeRoux Thunder Wafer

      I hear what you saying, and im not saying your wrong, I just want you to give me the passages in Revelations and explain how they predict this. Again, not hating, just want to learn

      • DJohn1

        This revelation thing is a matter of belief. Much in this book describes things of a nightmare in the making. I believe the opening of the Seals in Chapter 6 might be a place to start. War and poverty come to mind. And the high prices demanded for food in this time of strife.

        The United States is often referred to as Babylon of the 21st century.
        I find it interesting that the people in power go hide underground and that also is predicted.
        The rest predicts a time of real bad destruction from a number of sources.

        Much of this book sounds like it is a science fiction fantasy of really bad proportions. Often we are viewing the inner workings of an alien court complete with various creatures, all of which are intelligent, dealing with the actual machinations of creation. We are dealing with the ultimate destruction of the planet as various things fall into place.
        Then out of nowhere the entire thing ends with a new earth and a new heaven.
        I don’t understand all of it and neither does anyone else. But the collapse of the currency is described in Chapter 6 rather well.

        • LeRoux Thunder Wafer

          Sick thanks a lot for the response, will definitely go read it again with that in mind. As far as the part where the new earth comes in, I can help out a bit. The negative/evil is only there if your perception sees it as such. Life and death are all part of the cycle, if it is known that we are immortal souls death would not scare us, and we would realise we are cleansing the planet so that we can live in harmony not only with each other but also with the planet. Namaste

        • JKB2

          I can help a bit with your understanding of ‘new heavens, new earth’. You’re astute in your observations of the coming currency collapse, the formation of digital currency and the inability to buy or sell anything without the mark. It’s how it’ll go down, and your also correct it’ll be ‘sold’ as a cure to all the indignant people that refuse to join the new system (and hence be considered criminals for refusing). My thought on new heavens / earth is transplantation. All believers being ‘caught up in the air, to meet the Lord’ with the eventual relocation to a new planet, while this one is destroyed. The ‘lake of fire, which burns for ever and ever’ is quite possibly our sun’s transition in size, eventually burning the planet to a crisp. That is, if it’s reasonable to conclude that the scientists have modern timeline and carbon dating wrong. The earth was flat just 500 years ago, according to them… Just my current thinking in how Biblical prophesy seems to be unfolding.

  • cannuck21

    An excellent article. If anyone wishes to learn more about the Federal Reserve then the book; The Creature from Jekyll Island by Edward Griffin is well worth reading. That is, if we all have time left in which to do so…..good luck everyone

    • JustanOguy

      Excellent Suggestion on a Great Book to Read!

  • Rufus T Firefly

    The Fed is doing the work of the almighty….making sure the deserving 1% gets all they deserve. Remember, a century ago it was the unwashed William Jennings Bryan fools begging for a Fed

  • saintmatty

    It will happen. You cannot buy or sell on eBay unless you take the mark. You cannot use the internet unless you take the mark. Many will take the mark because they will not be able to imagine what life would be like without the internet, Facebook, and eBay. We are too dependent on these things.Once the One who is preventing it from happening is taken away. The One is the Holy Spirit living inside of the Christians. Can you say Rapture?

    • 2Gary2

      Dawg–the only rapture your gonna have is if you listen to the song by Blondie.


      If i don’t take the mark then i guess i won’t have to pay taxes either.

  • Next is the mark of the Beast you will not be able to buy sell or trade without the mark…. and No one is getting away with anything because EVERYTHING! is laid bare before him in whom we must give an account.

  • Of course the U.S. government prints money: The Fed is controlled by the government. If not, cite examples where the Fed 1) refused a request by the U.S. government to act, or 2) acted contrary to the government’s wishes. I enjoy your posts, but you can wonder a bit too far into the invisible-men-who-run-everything theory.

    • Kosta Alexander

      The FED is not controlled by the Government Randy, it is absolutely the other way round! Can you find the US Federal Reserve under the Government listings in the white pages? It is public knowledge (perhaps not to you yet) that the shareholders of the Fed are the 12 regional reserve banks and the shareholders of the 12 regional reserve banks are as varied as Bank of America, Citi Group, JP Morgan, Bank of England and thousands of other US & European private and publicly listed banks. I am citing information that has been requested and provided by the FeD itself under the Freedom of Information Act… Do your homework and you will see that the Fed is in fact a privately owned corporation. The President appoints the Chairman, yes, but from a list of candidates given to him by the regional banks. It’s a show. The bailouts happened because the Fed was giving money to it’s shareholders and leaving the bill to the taxpayers. The fact that Americans paid no income tax prior to The Fed’s creation in 1913 is not incidental. The IRS was crated to tax people for the interest of the FED system.

    • Kosta Alexander

      In regards, to your second statement when the Fed has acted contrary to the Governments wishes – how about when the FED advised Congress or Obama that they would not credit the Governments account for the $1 trillion dollar platinum coin the Government wanted to give to the Fed to have it’s account credited and avoid the fiscal cliff stand off. The fact that the idea is absurd is irrelevant – the FED made it clear ro Obama that the US Congress gave up the right to coin or print money in 1913 and in no circumstance will the FED allow it to print or coin money without it borrowing it from the FED…. For electronic dollars the Government must issue bonds that promise to pay back more funny money than the Fed is creating out of thin air. It’s a giant Ponzi scheme that will eventually blow up.. The sam gig has ended disastrously all ver the world – the US will be no different, except that most of the western world will be bankrupted not just the citizens of one nation.

  • Global elite goal: to forelcose on the planet and put the humankind in chains. The money system is the vehicle used to achieve this goal in a concealed manner. The privilege of being “lender of last resort” makes the Fed owner of the world because they can make as much money as the want and buy the planet with it. Look at the $40 billion a month QE to buy US mortgages: there are 3,000 billion of mortgages in the US. 3,000 / 40 = 75. It means that the Fed will own all US mortgages in 6.25 years. This is how they take the planet from us.

  • Mondobeyondo

    Is this actually legal??
    (Don’t answer, it’s a rhetorical question)

  • Richard

    A Global currency Reset is already in process……it ewill occur in 2013…
    Basel III is an up-grade to the world banking system that is being completed as I write this…this is an upgrade from Basel II….. My research indicates that there will be a change in how the world values currency globally in this upcoming year. The new system will be a transition away from debt management to asset management. It is a complete reversal of the kind of banking management and protocols we have seen during the past decades. This requires — in part –that the central banks of the participating nations, all over the world, derive their currency values based on the relative asset base of each country…..

    Currencies world-wide will now have some solid asset to back whatever funds are expended by the nations and by the banks that conduct business in those nations. Gold, silver, various precious metals, minerals, diamonds, oil, natural gas, water (in the ME especially), agricultural produce, dairy, etc., are all examples of assets each nation may or may not have to back its currency.

    The more assets a nation has, vs. its population base, the greater the value of its currency.

    This will mean the end of the Fiat currency age where the Central banks can just print money at will….with nothing to back this paper money. This is what has been happening all over the world with our Central Banks and this is why the US is in trouble, as well as the EU. This is why the US has a 16.5 trillion dollar deficit.

    This type of Global reset has happened before…just not at this scale..…..the last major reset was in the early 1970’s when the US went off of the partial Gold Standard they were on at the time, to the current Fiat policy. At that time there was also a 5% devaluation of the USD.

    There are some 168 currencies due to undergo restructuring of one kind or another in the near future… will be known as…..The Global Currency Reset or [GCR] .

    Within the last couple of weeks, Christine Lagarde (Managing Director of the IMF) announced a basket of some 15 currencies that would be restructuring within the immediate future. Again let me state, one of the aspects of this GCR that is significant, in my opinion, is the transition away from debt management to asset management.

    The GCR has been designed to restructure the world finacial system so that currencies more nearly reflect their actual asset-backed values. This will only be a temporary Global fix, but one that has to be implemented soon, before the financial house of cards starts to collapse world wide.

  • piccadillybabe

    We definitely need more regulation and control in the banking sector. If anything good comes out of this chaos, it will be to reveal all the graft, corruption and down right incompetency of the so called “talent” or lack thereof on main street and Wall street, how they bet (derivatives) away tax payers money and are not held accountable for any of it. The Federal Reserve is a banking system established to to supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to banks, the U.S. government, and foreign institutions. They have obviously fallen short of their duties by not tightening their grip on these banks and what goes on behind closed doors, JPMC, is a prime example as of late. Our government is only as good as the people who run it. If they cannot be trusted, then they should not be there. As we all know, these banksters and mobsters are sill at large and none of them have not been held accountable. That is what is so scary. The elephant is in the room and no one can see it or wants to see it.

  • JustanOguy


    Excellent Article that anybody should be able to understand.

    Maybe you can follow this one up with why the Federal Reserve is “printing” up $85 Billion a month to buy Mortgage Backed Securities and Treasuries to keep the phony recovery going and what would happen if it stopped?

  • Bw

    Well I think we should do it for the good of the earth and the good of mankind and distribute all the funds to the people let them farm let them live and we’ll do our critter wanted us to be happy

  • Dave Webb

    The Federal Reserve and all the other money systems around the world dependent on printing money with nothing to back it up are going broke. I expect bankruptcy
    within the next year. The debts have to go away and government has to start acting like a responsible business that it should have been before this all occurred.
    But the Global Elite already know this. They have known this for a good number of years.
    I suggest these same people have their money in a currency not backed by a Federal Reserve at all. More than likely it is a currency backed by gold and one with a limited supply of money based on its value in commodities. As the money supply thins down in value, they are changing more and more
    currency into this money that actually has value. That money
    continuously goes up in value.
    It could be the Swiss currency right now. Depending on what citizenship these people are registered as having.
    Or it could be something else.
    If it were me, I think I would have some of it in a currency that produces a lot of food.
    I think it would have to be as far away from the goings on of the United States as possible.
    And it would have to be fairly international and something not
    recognized by the Internal Revenue Service. They would have no jurisdiction and would keep out.
    As an amateur I can only guess as to what that currency would be.
    My employer actually owned an island in the Pacific near Hawaii. Had a cattle ranch out there. She was divorced 4 different times in her lifespan. Do not know if
    she is still alive. If she is then she is probably in her 90s.
    They turned everything over to a distant cousin last I heard.
    I won’t mention names. She had a board of directors that looked like a middle aged teddy bear factory. I had to laugh when I saw a portrait of the bunch of them. I am sure they
    were all very competent people. She looked like a very cranky old lady with dementia. Last I heard the family was worth over 13 billion dollars. I have nothing against her and I wish her well. I am sure the board has also retired.
    She wasn’t one of the elite. But I am sure she was one of the 400 families mentioned in Forbes every year. They owned a lot of television, radio, cable, automobile auctions, newspapers, etc.
    I mention this only in passing because it might be typical of a lot of very rich families from several generations down the road since the empires were created. With the advent of the IRS a lot of this is barely possible anymore. Bill Gates and partners are an example of it happening in my generation. I cannot think of many more.
    There is a curse of having this much money. The curse is that you can no longer trust anyone to love you for you. They are all in it for what you can give them in return. Even the billionaires know this. These are the new royal families. The old were the royalty of Europe. With this amount of money comes a lot of responsibility. In that, I am glad that I am
    poor. I came into this world naked. More than likely I will leave
    this world in no better shape financially. So will they.
    The smart ones develop their talents and enjoy life doing what they love to do best. It is a curse as well as a blessing. A lot are involved in helping humanity any way they can with their money. A lot are not bad people, just rich.
    The only people they can socialize with are equally rich people like themselves. Everyone else has motives that are questionable.

  • thetruthwillsetyoufree

    We have to start looking at how paper money was formed illegally.