Summing Up The Federal Reserve

The Federal Reserve was created on December 23, 1913. In was created in response to the many financial panics that took place in the early nineteenth century. It is what is known as a "central bank". A central bank is an institution that produces the currency of an entire nation. Two specific powers are inherent in the central banking process: interest rates and money supply aka inflation. A central bank does not simply supply the economy with money, it loans it out with interest. It is imperative to understand that there is only one possible outcome from this practice in the long run, DEBT. Every single dollar from the central bank is loaned at interest. This means that when a dollar is loaned out the cost is really that dollar plus "x" amount of immediate interest. Since the Federal Reserve has a monopoly on the production of currency for the entire nation and they loan each dollar out with immediate debt attached to it, where does the money to pay for the debt come from? Well, it can only come from the central bank again. This means that the central bank has to perpetually increase its money supply to temporarily cover this outstanding debt it created which, in turn, since that new money is loaned out at interest as well, creates even MORE DEBT. The end result of this system, without fail, is slavery, for it is possible for the government and thus the people to ever come out of this self-generating debt.