Giving money and power to legislature
Is like giving whiskey and car keys to a teenager. P. J. O’Rourke
The FRS and the US Treasury along with the entire rest of the government is lying about our financial status.
The bond market.
The value of bonds always moves reverse of interest rates.
When prime interest rates go up bond values go down.
If you are holding a $1000 bond that will on maturity pay 3% interest and the FED ups the interest rate to 4% the value of you bond falls because no one will buy it.
A new bond will pay higher interest so your bond will have to be discounted to sell, to $ $900.
The FED presently owns $4.7 trillion of their own bonds at from 1% to 2 % these were issued when prime interest rates were 0.05%
So if they raise interest rates from the present 0.05% to say 2.3% the entire system will become insolvent.
The National Debt.
The National Debt as of today is $18.4 trillion.
About 8% of the federal budget goes to servicing the national debt.
Total debt services 2015 are projected to be $1.472 trillion at 0.05%
Presently the government collects $2.3 trillion in taxes and fees annually.
If the prime interest rate doubles to 1.5% debt service will be over $2.5 trillion.
That means that all the money collected by government will go to debt service and not one cent can be used to operate the government.
Goniff’s in the loan business.
Are they aware of something you are not?
Loaning money has become a major usury industry. Take Springleaf Financial Service. They are borrowing money at under 5%
They send out a bulletin offering to loan you money at 29.12% interest.
Their profit margin is 24.12%
If you borrow $4,250.00 from them they will grant you terms as follows;
$163.06 per month for 42 months.
What a deal you borrow $4,250.00 and pay $6,848.52.
This entire scenario is a total lie. The FRS with every quantetive easing simply enters numbers on the asset column of the 12 FRS banks. From March 2012 to October 2015 that was 4.7 trillion dollars. How can they charge interest on funds that they created out of thin air? The entire system is a lie, called Central Reserve Banking and it’s a hoax. The Banksters charge the government interest for funds that they created which have no backing, and are worth exactly the cost of the paper they issue.