How the Federal Reserve owns you, if you have a minute.

Congress is bound by the Constitution to maintain the value of the dollar by making only gold and silver legal tender and not to "emit bills of credit." Power to regulate money does not mean the power to debase the currency. That's why they created the Federal Reserve system, to absolve themselves of this constraining Constitutional mandate, in order to accrue debt and continue government growth in the midst of economic downturns.

All the perplexities, confusions, and distress in America, arise, not from defects in their Constitution or Confederation, not from a want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation. -John Adams to Thomas Jefferson in 1787.

Few remember now, but dollars used to be redeemable for gold. In 1933 Americans could change $20 for one ounce of gold. That same year, at the insistence of FDR in the wake of the 1929 Stock Market Crash, the dollar went off the gold standard. Roosevelt confiscated monetary gold of American citizens, voided contracts requiring payments in gold, declared the dollar no longer redeemable to gold by American citizens, and made gold available to foreign central banks at a $35 exchange rate. That lasted until 1971, when Nixon admitted we wouldn't have any gold left at that exchange rate by the end of the year and cut all ties to gold by the American dollar. The result is that the dollar is worth a paltry fraction of what is was prior to this governmental farce and it's a direct result of granting private bankers the power to create currency not backed by gold or silver, which is explicitly prohibited in the Constitution by enumerating those powers to Congress. Worst of all, this wasn't even that long ago. These are contemporary villains robbing us blind, not overtly historical figures, and they will continue the scam as long as no one has effectively called them on it. Until recently.

How the scam works...

• Banks are required to keep a certain fraction of their total deposits as cash on hand by Federal law. Sometimes they get close to, or go under these numbers due to increased withdraws or loans. When this happens, they must borrow cash from another bank to keep their levels in check. When they borrow that money from that other bank, they pay the rate commonly referred to as "interest rates" by analysts.
• The Federal Reserve doesn't want the interest rates to rise, which they will if more and more banks need cash infusions and can't secure the loans. The Fed can't directly force an interest rate on lenders and borrowers, that would create a perception they are inhibiting freedom (ahem). They just buy bonds when the banks need that cash infusion to meet the Federal Reserve minimum cash requirements. Now that bank can start issuing loans to other banks and so on until the loans are so plentiful the rates decrease.
• Where does the Fed get the money to buy the bonds you ask, if not from another bank? Why, they just make it up silly, where have you been? The Federal Reserve simply creates a certain dollar amount out of thin air, writing checks on themselves and giving them to the banks. And now that the loans are so available, the banks now must loan at a lower rate or decrease their lending standards or both.
• All of this artificial intervention by the Federal Reserve simply devalues the dollar and drives inflation, making all of us poorer and the banks much, much richer.

How does inflation affect you?

First of all, understand that increasing the money supply simply makes the existing money in circulation worth proportionately less. For example, if there are 5 computers in the whole world, they would be worth a lot, right? If Microsoft then produced 1.2 trillion of them and could make 3 trillion more at the snap of Gates' finger, the price would go down , would it not? Same principle applies to the American dollar, more money in the system means the money in our pockets is worth less. 

• Your dollar bills are worth about $.03 of gold on the global market, a 94.1% decline since Roosevelt abolished the gold standard.
• The trickle down of the Monopoly money is painstakingly slow and full of corruption. The people who receive the money first, the most politically well-connected contractors and big banks, enjoy a windfall while the prices are still low. As the money is re-circulated, the prices of the goods rise quickly to catch up with the increased demand.
• All the while, we are paying the new prices for goods, but our wages have yet to catch up. In fact, they are the LAST thing to come around to the new artificial paradigm. At which point, the Fed has probably been "forced" to print some more money and so it continues with the average American never "catching-up".
  

That, my friends is how the rich get richer and the poor get poorer. And why the Federal Reserve system is a fraud on the highest level and must go at all costs.