The Big Secret

What Your Representatives in the Federal Government Do Not Want You to Know

If you truly want to understand politics, including why DC politicians have become certifiably insane, sit back. Relax. I’m about to reveal their big secret.

What They Don't Want You to Know

You see, what our DC politicians do not want you to know is that, as long as our present money-creation system is in place, it will remain mathematically impossible to either balance the federal budget without destroying the economy, or certainly to ever pay off the national debt. And, friends, that is not because government inherently spends too much, not directly at least. No matter how many responsible adults we dispatch to Congress to control federal spending, spending will increase anyway because the system demands it, the economy demands it, and cannot function without it. That’s because there is direct, mechanical linkage between the growth of deficit spending and growth of the U.S. money supply that powers the American economy.

What I describe is published by the Chicago Federal Reserve in a downloadable format in a document entitled, “Modern Money Mechanics.” Modern Money Mechanics (MMM) describes how money is created and who creates it. By “money,” I’m talking about Federal Reserve Notes, which are the dollars in your wallet, your bank accounts, the M-2 Money Supply, etc. The upshot of the document, which you would likely never know except for reading my column, is that practically the entire U.S. money supply is borrowed into circulation, at interest, from the private banks of the Federal Reserve System. Since our money is all borrowed from private interests, it should not take a rocket scientist to understand why America, including its government, is over $90 trillion in debt.

And the kicker is that the US Government provides the base collateral for every dollar this private system issues, effectively becoming a perpetual guarantor that all outstanding dollars loaned into the world will be paid back. The government taxes your wealth, transferring it to the US Treasury, to fund the debt service. The Federal Reserve System, including the U.S. Treasury, is simply a wealth-transfer mechanism.

How the Money Creation System Works

So, here’s how all that works, a process MMM describes on page 7. Before any new dollars can be issued by the system, the U.S. Government must go into debt by issuing a debt instrument, let’s say a Treasury bill, say, a T-Bill with a face value of $10,000. To enlarge the money supply, that T-Bill will be purchased as collateral by the New York Regional Federal Reserve Bank. To balance the transaction, the New York Fed will issue 10,000 brand new dollars into circulation, deposited electronically into the account of the T-Bill’s seller at, let’s say, Goldman Sachs, a mega-Fed member bank in New York City. Next, under Fed rules, collateralized by that single deposit, Goldman can create brand new dollars at-will, which the bank will either loan out or invest, up to nine times the original deposit’s value. That means that one $10,000 T-Bill held by the NY Fed as collateral will allow Goldman Sachs, in this example, to issue as many as 90,000 brand-new loanable or investible dollars. Simply put, U.S. Government debt collateralizes the entire system. The Fed will not issue dollars without the US Government first going into debt.

Thus, as more dollars are required for growth, the U.S. Government must issue more debt and the Fed must buy it. If, perhaps, by balancing the budget U.S. debt does not increase, the debt service continuously paid to the issuing banks, and thereby regularly withdrawn from circulation, would cause the money supply to decrease. Therefore, unless the U.S. Government continues to issue additional debt, to remain solvent the banks would be forced to call in dollars previously loaned or invested, decreasing the money supply, causing the economy to slow, and stock markets to tank. Eventually a depression would occur, which is what happened during the 1930’s.

Now if any of this is comes as news, that is only because those who control the system desperately hide the truth from you. It’s the “Big Secret.” And because they control America’s money supply, the amount circulating and who receives it, until President Trump arrived the “system” was in various ways dictating policy to our crazed politicians. Because that system creates its own privately-owned and issued money, financial brokers and their corporate cousins possess the inherent means to purchase all the influence they need to keep government working for them, rather than for the American people. That is why D.C. politicians act certifiably insane. What they do and say will never make sense as long as you believe they are working for you. What they do and say will make absolute sense once you realize they are working to protect a political system that put them into power and has matured around an illicit source of corporate financial influence.

Prior to his election in 2016, President Trump’s sworn purpose was to wrest control of American government away from corrupt, global financial interests. Now, in 2023, Trump is the only real political danger the system has ever faced. And because he is such a threat, Trump makes the system’s protectors insane. And note, the system's protectors are not concerned should Florida Governor Ron DeSantis become the Republican nominee for 2024. In fact, they are touting and pushing DeSantis, hopeful that he will declare and defeat Trump in the coming 2024 Republican primaries. That should tell you a lot.

The protectors in the MSM know that Trump played the system and understands it well. Time after time, Trump has signaled his intentions that the corrupt and corrupting Federal Reserve System will be restructured to one that benefits the people rather than the financial elite. By simply flipping a switch already at the president's disposal, which would effectively place the U.S. Government as the issuer of the currency, thus placing the people’s government as the beneficiary of the system rather than private banks, the extraordinary profits the system generates for Wall Street could be re-channeled to pay off the national debt and retire any necessity for a federal income tax, but of course at the expense of future extraordinary Wall Street profits. That’s the rub. That’s what they are trying to protect. Trump knows all that. Now you do. The big secret.

So if you truly want to understand national and world politics, read this again, apply what you read and share it with your friends.