Awakened Life

In our last post (Lets Talk about Money) we talked a little about how our Monetary system works and how Money is funneled into the economy. We also talked about how this led to the housing meltdown. Here is a great summary on how Money is created from the folks over at Money Masters:

…[Making Money] is a four-step process. But first a word on bonds. Bonds are simply promises to pay — or government IOUs. People buy bonds to get a secure rate of interest. At the end of the term of the bond, the government repays the principal, plus interest (if not paid periodically), and the bond is destroyed. There are trillions of dollars worth of these bonds at present. Now here is the Fed moneymaking process:

Step 1. The Fed Open Market Committee approves the purchase of U.S. Bonds on the open market.

Step 2. The bonds are purchased by the New York Fed Bank from whomever is offering them for sale on the open market.

Step 3. The Fed pays for the bonds with electronic credits to the seller’s bank, which in turn credits the seller’s bank account. These credits are based on nothing tangible. The Fed just creates them.

Step 4. The banks use these deposits as reserves. Most banks may loan out ten times (10x) the amount of their reserves to new borrowers, all at interest.

In this way, a Fed purchase of, say a million dollars worth of bonds, gets turned into over 10 million dollars in bank deposits. The Fed, in effect, creates 10% of this totally new money and the banks create the other 90%.

This also explains why the Fed consistently holds about 10% of the total US Treasury bonds. It had to buy those (with accounts or Fed notes the Fed simply created) from the public in order to provide the base for the rest of the money the private banks then get to create, most of which eventually winds up being used to purchase Treasury bonds, thus supplying Congress with the borrowed money to pay for its expenditures.

Due to a number of important exceptions to the 10% reserve ratio, some loans require less than 10% reserves, and many no (0%) reserves, making it possible for banks to create many times more than ten times the money they have in “reserve”. Due to these exceptions from the 10% reserve requirement, the Fed creates only a little under 2% of the total US money supply, while private banks create the other 98%.

To reduce the amount of money in the economy, the process is just reversed — the Fed sells bonds to the public, and money flows out of the purchaser’s local bank. Loans must be reduced by ten times the amount of the sale. So a Fed sale of a million dollars in bonds, results in 10 million dollars less money in the economy…

I know the above is really hard to believe and accept because what we have been taught. Money is one of the biggest faith scams ever, in that we put so much belief in its value, and converting this value into power to obtain more. We do this believing this is what being rich or prosperous is all about, in fact we have created religions around the obtaining of wealth, how many Tv and Faith evangelist have you heard stating that God wants you to be rich and prosperous, just make sure you tithe and sow your money into my ministry to guarantee God’s blessing. Oh yeah, don’t forget to confess and attract your wealth as laid out in the Secret and many other Spiritual like principles.

Don’t get me wrong, I firmly believe in solid spiritual principles that opens up channels of wealth for all of us as co-creators with God, The Universe, etc. All without the charade and charlatans of Magic Thinking. Money may not be the root of evil, but some of us are  so consumed with obtaining it in our quest to become wealthy we ignore that we have become slaves to something that a few people have complete control over, all hidden behind a veil of an quasi-Government organization called the Federal Reserve Bank.

In fact, even becoming a multi millionaire is no guarantee of wealth when others can devalue your money simply by changing monetary policy, check this out.

Wow! Thats right, the Fed standing policy is to devalue and destroy the dollar in order to keep prices low, and then the Fed in order to create capital manufactures money out of thin air!

Lets stop praying and hoping for wealth. In order for you to be wealthy in our society means that someone else has to be poor or you have to consume/buy so much stuff to measure your wealth that it becomes not worth it, the measure of Wealth is the measure of scarcity and your ability to obtain what is scarce. What we need is a new model of wealth that includes everybody and not give a few the ability to control and create money out of thin air and call it prosperity. This is unsustainable and each financial crisis will be worse than the previous one, all of the wealth that people have accumulated will be worth less and less. Wake up! Placing faith in something that no longer works is foolish, we have created this mess and we can fix it so all can benefit, we are all divine and we can create a society were all can flourish and be prosperous. Look around you, we see companies and institutions that we placed so much faith in have failed or are on life support. Some will say, we should just turn it over to God, “Pray to the Lord and  do not place your  faith in Man” or “Humble yourself,  pray and God will heal our land” Yeah Ok, well how’s that working out for you so far?

We have been placed here and we are responsible, God has answered, just look in the Mirror! 

I leave this thought with you from  Jacque Fresco:

All of the world’s economic systems – socialism, communism, fascism, and even the vaunted free enterprise capitalist system – perpetuate social stratification, elitism, nationalism and racism, primarily based on economic disparity. As long as a social system uses money or barter, people and nations will seek to maintain positions of differential advantage. If they cannot do so by means of commerce they will resort to military intervention.

Peace and Love