In yet another “no-duh” moment, the politicians who are paid by you to supposedly work for you are finally waking up to yet another central bank scam. I wrote about this in real time as it was happening last year, no one paid attention.
Criminal, Traitor, and former Secretary Treasurer of the United States, Hank Paulson, pushed for and received the right to PAY BANKS FOR THE MONEY THEY HOLD IN RESERVE.
Here’s the resultant chart of “Excess” Reserves:
Can you guess when they started paying money for reserves?
Now, let’s set the record straight… it’s a huge advantage to the banks to be able to use their “fractional reserve system” in the first place. In fact, it’s actually one giant Ponzi scheme, but let’s ignore that. Banks, by charter, are granted the right to lend out more money than they possess – that is how they make their money, and it’s also how most of the money (credit money) is made.
Along comes the financial crisis and Paulson begins lobbying to PAY THE BANKS FOR THE MONEY THEY ARE REQUIRED TO HOLD IN RESERVE. This is a concept that is JUST CRIMINAL! Again, banks make plenty of money (too much w/o usury laws) simply by lending money they don’t have – that’s a right only a chartered bank has, you and I don’t have that ability. Yet, all of a sudden it makes sense to use OUR MONEY to pay them interest on the money they hold so that they can loan US money at usurious rates? HUH???
At any rate, the appropriate palms were lubed and this SCAM made it past the politicians who are now complaining about it.
Kucinich - the Federal Reserve is paying banks NOT to make loans, " One Fraud after Another"
Naturally, the banks didn’t want to HOLD MONEY without interest because they know what they and the Federal Reserve are doing to devalue our money. So, there they were holding massive NEGATIVE RESERVES for the first time in history (the charts and definitions were changed during this timeframe by the Fed). Along comes paying for reserves and what was massive negative reserves turns into an instant historic surplus!
No one but me (that I know of) wrote about it at the time and I even had many commentators respond that it was appropriate to pay banks interest on their reserves! NO IT’S NOT! The banks are REQUIRED to hold reserves as a premise of their ability to be a bank! They do not and should not ever be paid to hold reserves, much less at a higher rate of interest than they can receive elsewhere.
Again, watch Paulson’s personal investments and see who profits. I repeat - Criminal and Traitor.
Jefferson Airplane – Somebody to Love (When Truth is Found to be Lies):
PS - Why is it that the "EXCESS RESERVES" totals more than $750 billion, but the "NON-BARROWED RESERVES" only totals $150 billion? Could it be that there is over $600 billion in BARROWED RESERVES? Of course, that's what all the government bank bailout loans are for. Yet, we are paying them money for the reserves on which they borrowed from us so they can lend it back to us at a higher rate??? Did you follow that? Ludicrous!
Chart of "Non-Borrowed Reserves:"