Friday, September 7, 2012

In case you didn't know...


In case you didn't know...

Day after day, we go to work, work hard, trying to get ahead or make a dent in our debts.

How's that working for ya?

It saddens me when I see so many people going through this routine who are completely oblivious to what's REALLY happening to their hard-earned cash once they release it into their banker's care. When I learned what was going on, I realized we HAD to STOP SAVING MONEY!

DID YOU KNOW: Your bank doesn't actually hold on to your money. They keep a very small percentage of it (called the reserve), and loan out the rest.

EXAMPLE: Say you deposit $100 today (or $100 MILLION). The bank will hold a $5 (5 Million) reserve, then make, let's say, a $95 loan (95 Million) to someone else. The guy who received the loan ends up depositing the funds right back into that same bank.

PROBLEM: The bank now has deposits worth $195 ($195,000,000), but only has your original $100 ($100 Million) in cash. They've effectively 'created' $95 that doesn't exist (or, $95 Million out of thin air). Now, imagine them doing this day in and day out for decades with trillions... BILLIONS of dollars.

This is called “fraud” in any other line of business. In the world of finance, they call it 'fractional reserve banking'. Don't worry. It's completely legal, thanks to the Federal Reserve Act of 1913. Before this, banks were obliged to actually hold on to their customers' deposits. Crazy, I know. Your money was held there for safe keeping and would earn interest for you – it would grow. The longer you left I alone, the more it would grow.

Imagine that.

So, because of fractional reserve banking, the commercial banks have enormous influence in distorting the money supply. It's not just the Fed. So, doing away with central banks, or even going back to the gold standard, won't really solve the problem. Besides, in my humble opinion, because such incredible treasures are at stake, I don't believe it's ever this government vs. that government in warfare. No, I contend it's this Central Bank vs that Central Bank, mainly because these Gangster Bankster are able to buy and sell and kill off whomever, whatever, wherever they wish.

It's all about the money, the love of which is the root of all kinds if evil.

To really attack the physical root (NOT the spiritual: GREED), you'd have to eliminate all vestigial institutions like the FDIC that underpin the fractional reserve banking fraud... plus the very concept of fractional reserve banking itself.

As you can imagine, because nobody is talking about this idea, there is no REAL hope of a sound currency on the horizon. Just talk. That's why it's SO important that we gradually accumulate precious metals and turn those pieces of paper into something they can't conjure out of thin air (Called QE1, QE2 and they have already started the presses for QE3, i.e., “Quantitative Easing,” the printing and infusion of as much money into the system as they wish, despite the fact the Dollar loses more and more value with every QE printing. And the whole world realizes this.)

NOTE: While the value of the Dollar decreases, the value of Gold and Silver goes up, even when it decreases.

RULE O' THUMB: If it's printed on paper, it's worth the paper it's printed on. Period.

Get Gold. Learn about Karatbars! The alternative? It's the definition of insanity, doing the same thing repeatedly while expecting different results.

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