From the beginning, they created more notes than they had gold and silver to back it up. The Federal Reserve Bank in NYC is the lead bank in a cartel and this bank has allowed for creation of $3 in debt for every $1 in circulation. They(the bankers) designed this system, not the American people. This "Magic Money" model has worked since 1913 and has been responsible for every bubble and crash since then. And it has also been the financial engine for excessive military build-up and sustaining long wars, like the current debacles in Iraq and Afghanistan.
We saw the seeds sowed in the 1990’s with the unprecedented mixture of formerly separate retail and investment banking industries, allowing a dilution of the dollar to occur without anyone really noticing. It was a literal 'banker's free-for-all'. Bill Clinton happened to be the President who signed the legislation which allowed this to happen and setting the stage for the disastrous scams, where we have seen a banking system that went from fractional reserve lending to UNLIMITED leveraging.
What's next?
So what’s next? Certainly we will see an inflated dollar and the wipe out of America’s great middle class. Stagflation- a sharp drop in property values and a sharp rise in inflation. $7-10 per gallon? We are also fast seeing the elimination of savings in America(without savings we have no real economy). Successive waves of inflation which will mean that every one of those Baby Boomers' 401K retirement funds will only be worth 60% of what they were. And the list goes on.
Ultimately, our failed monetary policies will break the back of the US dollar- and it might take weeks, months, or years. Who knows how long until the wave of hyperinflation? But with the current monetary policy, it will happen. Further speculation could see extreme devices like a single North American currency like the "Amero". Or worse, serfdom in the form of an economy controlled by a private World Bank.
Predictably, too many pundits are blaming 'the scourge of capitalism' here, yet they are caving in by wanting to award the bankers with their biggest-ever payout- go figure that out. It only amounts to yet another giant scam by our perennial charlatan banking community- and all at the expense of the trusting, naive, and endangered American saver.
It seems that too many of us Americans would prefer to read little and not to know anything bad is going on in Wall Street and Washington DC. America will do so at its own expense.
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