Trade Deficit and Federal Reserve, Stealing US Wealth

Why does no one, not the media, not Congress, and not even US Presidents prior to Trump, speak about monetary policy?  The answer is simple.  The US Government does not control monetary policy.  Instead the US Government “subs that out” to a private corporate entity, one cleverly designed to appear as a governmental organization, but is not.  That corporate entity is called the “Federal Reserve System.”  In passing the Federal Reserve Act in 1913, Congress privatized control over the issuance of American currency.  No longer a function of government, the ownership and control of the American money supply was handed to an appointed board sitting atop a private institution known as the “Federal Reserve Central Bank.” 

Underneath the Central Bank is a set of twelve Regional Fed Banks.  Those regional banks are owned privately by shareholding “member banks” residing in each respective region.  The largest region by dollar volume is the Federal Reserve Bank of New York.  That is the region that includes Wall Street.  And it is from Wall Street Federal Reserve banks, with names such Goldman Sachs, JP Morgan, and others that most US currency is created, using only a keyboard and a mouse, and issued into circulation. 

But here is the important part: Because this is a private system, all dollars issued into circulation come as loans, bearing interest rates.  That means the entire US money supply, including all dollars around the world, were once borrowed into circulation by the American people, at specified interest rates and payback periods.  That means that the member banks of the Federal Reserve system receive interest payments on all dollars circulating worldwide, and the American people and their government pay it.  Is it any wonder how those banks became “too-big-to-fail?”  Is there any wonder why the American people and their government are over $70 trillion in debt with no way within the system to pay it off?  Friends, the Federal Reserve System is a debt-creation machine.  That’s all it does, create debt and issue it into the hands of debtors—us, the American people.

Dollars Leaving US Must be Borrowed Back Into Circulation

Now let’s apply what we just learned to better understand the US trade deficit and why President Trump wants to stop it.  We just learned that dollars do not grow on trees.  Dollars are not just “out there.”  Dollars must be borrowed into existence and paid back at some time in the future, along with interest.  That means there are always new dollars being loaned into circulation and old dollars being retired, sort of an ebb and flow, in and out of the money supply.  But because the Federal Reserve System does not issue the dollars necessary to pay the interest on those loans, to keep the system afloat more and more dollars must always be borrowed, in perpetuity, such that enough can be used to pay back the banks that issued them, both principle and interest.  That raises a question.  Hypothetically, what would happen if, say, $800 billion US dollars left America each year bound for other countries?  Assuming $14 trillion in domestic circulation, that’s almost 6% of the dollars necessary to support the US economy, at its present level, leaving each year.  To keep the US economy going then, those dollars would have to be borrowed back into circulation, would they not?  Bingo.  You got it.  And that’s the point.  That’s why Wall Street loves the US trade deficit, the bigger the better.  To keep the US economy going, each dollar leaving America for other countries must be borrowed back into circulation by the American people.  And from where might they borrow those dollars?  Of course, the member banks of the Federal Reserve System.  The overwhelming majority of new dollar borrowing is from Wall Street banks.  Are you getting this?

And to entice the American people to keep sending borrowed dollars out of the country, the global marketplace dangles inexpensive goods, some even produced by slaves, relentlessly in front of their eyes.  That’s called “import marketing.” And the American people never understand that they are participating in a brilliantly-conceived, technocratic, wealth-transfer system.  Over time, the US trade deficit leaves Americans and their government inundated with debt and enables foreign interests to reach into our country, using the dollars we send to them, and buy up our valuable stuff.  They buy our real estate, movie studios, auto manufacturers, resorts, and importantly, influence in the halls of Congress.  And who is really behind it all?  The banks of the Federal Reserve System. The end result is an America completely encumbered by debt and sold to the highest foreign bidder.

What I just described is the essence of globalism.  Globalism is a worldwide, wealth transfer protocol, a system that removes wealth from the American people, in exchange for goods produced as cheaply as possible in countries that allow unfair labor practices, all the while creating demand for more and more dollars on loan from private banks which, until President Trump took office, controlled the US Government.

Now this is not hard to understand.  But what amazes me is the number of really smart people, calling themselves, “free-marketers,” who are so brainwashed that they cannot grasp what a 4th grader, with a fresh mind, can easily absorb.  The US trade deficit is stealing American wealth.  I just explained how.  President Trump keeps telling you that. Yet, extremely intelligent, however brainwashed Americans insist that he’s nuts.  While Trump works to stop American wealth from bleeding overseas, duped Americans keep untying the tourniquet.