How can that be?

Federal Reserve Banks are allowed to loan out 10 times as much money as they actually have. Backed by the “full faith and credit” of the United States Government. The phrase “full faith and credit” is a legal phrase that is defined as “An unconditional commitment to pay interest and principal on debt, usually issued or guaranteed by the U.S. Treasury or another government entity” according to InvestorWords.com ( http://www.investorwords.com/2109/full_faith_and_c redit.html ). The bottom line is that it means that its backed by you the taxpayer. Believe it or not, they have the right to create loans for 10 times what they have in actual funds and we, the people are legally responsible for paying this fictional money created out of thin air.

It’s called fractional banking, and this is the way banks make mega-bucks. Simply put, if you put $1000 into a bank. They can make loans of $10,000. So, if they are charging 5% on a $1000 loan, they are also charging 5% on the other nine $1000 loans that they have made electronically. So they are making 50% interest on your $1000 plus $9000 more dollars if all the loans are repaid. Once all ten loans are repaid, they have $10,000 plus in capital, so they can make $100,000 dollars in new loans. All off you $1000 deposit. Most loan sharks would rather be bankers.

Does this sound like they are creating money? Yes, that is exactly what they are doing. They are creating money electronically out of thin air that both weakens the dollar and feeds inflation. Despite what all the experts tell you, this is the primary source of inflation, and the weakening of the dollar as more and more money is created.

Ever wonder why they track your average bank balance? Because they can make additional loans against it.

Don’t forget. A Federal Reserve note is not money. It is a debt instrument. Each federal Reserve note is a debt that has to be repaid. Federal Reserve debt created electronically by fractional banking loans is also debt. Debt that must be repaid by the American people. The 700 billion would generate 7 trillion in Federal reserve debt … which would then be added to the national debt … and then we would be charged interest on that. If you aren’t bellowing in rage by now, check your pulse. You must be dead.

It gets worse.

When this 7 trillion dollars gets added to the money supply, your outhouse toilet paper will be worth more than a dollar. Prices will rise as the value of a dollar declines, perhaps at hyper inflation rates. Given the short time period in which this 700 billion would be made available, it will probably be very fast. In a short time, you will have to begin earning a lot more to maintain your existing lifestyle while trying to payback your share of 700 billion dollars in additional taxes. So what does that mean? Yep. A lot more folks will have to borrow money from banks to make ends meet.

Nice, eh?

We give them the money.

They multiply it by 10 and start loaning.

They add the entire seven trillion to the national debt plus interest so that we have to pay them 10 times what WE LOANED THEM in the first place.

Not to mention the fact that the people or business that borrowed part of the seven trillion have to pay back as well. Which means that they double their entire seven trillion.

And when the seven trillion dilutes the money supply and inflation soars sky high, they will have more customers begging for more credit to maintain their standard of living against rising prices. A nice little recycling credit market going deeper and deeper in debt that nets them $10 dollars for every real dollar recycled. Useless eaters on fixed incomes can just die. Who gives a hoot.

Last, but not least, Barack Obama has publicly stated that if we get our money back, it may be used to pay off part of the national debt. Yep. We pay 700 billion so that they can add a trillion to the national debt, and then, after using our 700 billion to put us 7 trillion dollars in debt, they give it back or just take it off what we owe.

RIGHT!

Right now, bankers and wall street wizards are snorting at the word “loaned”. They will point to it and say, “Ignorant! The Fed is loaning the money not you.”. And in the legalese it looks exactly like they are right. But don’t let them mislead you. The only thing that gives a Federal Reserve note any value at all is the “Full Faith and Credit of The American People” which is the only thing behind the “Full Faith and Credit of The United States”. If the Fed is using the “Full Faith and Credit of The American People” to make money, then we are loaning to them … not the other way around … regardless of “bought and paid for” legal interpretations. Just in case you didn’t make the connection, that means that the National Debt is what the Fed owes us … not the other way around … although they would like for you to think this is a foolish notion and absolute nonsense.

Now, these are the people who have engineered a credit crisis and are screaming for credit relief without giving a tinker’s damn about what happens to you or me. Actually, they may give a damn. They may be enjoying the idea of permanent financial slaves captured with their own money.

You should expect that if we don’t give them the money, they will try to punish us with staged situations that may hurt individuals and small businesses while screaming “We told you so”. And every well known media puppet, expert wannabe, and hired talking head will be doing the same. All the fingers will be pointed at you and me screaming “How stupid can you be? It’s all your fault!”. Do not let them intimidate or bully you into submission. These fools are nothing but well paid slaves themselves. Stand the gaff. Fight back. If your bank starts applying pressure by recalling healthy loans and mortgages that people have made or refusing credit to solid businesses, transfer your I.R.A.s, cash your CDs, withdraw your savings, and close your account. If they want to manufacture a credit crisis, then give them a real one. Every dollar you take away from the bank is 10 dollars they can’t loan. If they refuse to give you everything, take what they will give you, then march down to the courthouse and file a lean for the outstanding amount against the assets of the bank, and against the names of all the board members. Do not remove the leans until they pay you what they owe you. Fight. This bill will make you a slave. If you want to be free, you have to fight.

George Bush knows what his proposal will do to you. Paulson knows. Barack Obama and John McCain know. Every Representative and Senator knows. EVERYBODY IN D.C. KNOWS. EVER NEWSPAPER COLUMNIST, NEWS REPORTER, TV PERSONALITY, AND MEDIA WIZARD KNOWS … all the while telling you “The public just doesn’t get it”. You get it alright. They just don’t like it. All of them know that there are better ways of handling this without any additional money being added to the money supply and without any additional tax burden on the public. Call your Senators and Representative and tell them “you get it, and they better get it too”. Tell them in no uncertain terms that if they put this 700 billion on the taxpayers, then they will be history. If they aren’t up for reelection, tell them you’ll start an immediate petition for recall.