"Banks lend by creating credit. (ledger-entry credit, monetized debt) They create the means of payment out of nothing." -- Ralph M. Hawtrey, Secretary of the British Treasury
The seven men that thought of and designed the Federal Reserve had one key factor that needed to be addressed before implementation. How do the bankers shift any and all financial losses from banks and corporations they were associated with onto the public without the public knowing? The answer is "Bailout." Bailout is the name of the game and everyone that functions inside the monetary system is affected.
Bailout is possible because The Federal Reserve system allows Commercial Banks to create money out of nothing. As noted in the book "The Creature From Jekyll Island" - A Second Look at the Federal Reserve, author G. Edward Griffin notes that commercial banks create money out of thin air using "checkbook money" designed around what he calls the Mandrake Mechanism.
When bailouts occur inflation rises. Inflation is simply the printing of more money that is circulated into the economy thus devaluing the current supply of money that is already in circulation. This results in the reduction in purchasing power of consumers with the end result reflecting in higher prices for goods and services. This entire system is simply bookkeeping entries that perpetuates on-going debt that can never be paid off.
The Federal Reserve usurps the United States Government. The US government guarantees loans provided by The Federal Reserve if the borrower defaults on any and all loans. Congress is then convinced that a bailout must occur or the economy will fall on hard times. Once bailouts are approved a bookkeeping entry is made that shifts the defaulted commercial loan from the bank's ledger onto the taxpayers.
This system of smoke and mirrors is not that difficult to understand if you are willing to keep an open mind and research the topic. The monetary and economic system is a contrivance masked around complex wording and boring charts & graphs. This is to keep the public away from understanding the true nature of this false and fraudulent system that transfers monetary wealth from the masses into the hands of an elite group of people that want power and control over you.
"Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job." -- Robert A. Heinlein, Expanded Universe
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