A banking cartel is haunting our society with its ability to create, destroy, and control money — the Federal Reserve. It must be abolished and replaced with a more rational and fair system.

Money is the lifeblood of modern civilization. It enables us to establish contracts, assess the worth of goods and services, and trade efficiently. But what exactly is money, and who creates the U.S. dollar?

Our monetary system is a mechanism for transferring wealth to urban elites who produce nothing.

The first step in understanding money is dispelling the notion that a valuable asset like gold backs it — because it doesn’t.

The dollar is valuable for two reasons. First, it is backed by the “full faith and credit of the U.S. government,” meaning its worth derives from its ability to tax people to pay its debts. Second, the federal government only accepts tax payments in U.S. dollars, creating an inherent demand for the currency.

Despite these factors, the federal government creates very little of our money. The U.S. Treasury prints paper bills and mints coins, but physical cash accounts for only about 10% of our total money supply.

The hidden mechanism of money creation

Most of our money comes from debt — and that’s a problem.

Modern money is almost entirely created through lending. Every non-cash dollar must eventually be repaid to a private bank with interest. In other words, most U.S. money is simply a collection of IOUs owed to private financial institutions.

Commercial banks operate under a system called “fractional reserve banking.” They are private businesses that only hold a small amount of cash reserves and issue loans often exceeding 900% of their small cash reserves. When a bank issues a loan and deposits it into a borrower’s account, new “money” is created out of thin air.

An unelected financial cabal

Over 100 years ago, a group of powerful financiers met on Jekyll Island, off the coast of Georgia, to draft a plan that would give them — rather than Congress — control over America’s monetary system. The result was the Federal Reserve Act of 1913, which created the Federal Reserve — a private banking cartel disguised as a government agency.

The Federal Reserve is not part of the U.S. government. It is a privately held bank consortium, accountable only to its shareholders. The Federal Reserve’s transactions have never been fully audited, and its decisions require no approval from any government official. Congress has outsourced its constitutional control of the American money supply to some of the wealthiest people in the world, arguably the greatest financial crime in the history of this country.

When the federal government spends more than it collects in taxes, it borrows the difference. It issues Treasury bills to borrow money from investors or the Social Security trust fund. In some cases, it issues Treasury bills directly to the Federal Reserve. The Fed then creates money by adding numbers to an account without tangible backing. This process leaves the government — and ultimately taxpayers — responsible for repaying the Federal Reserve with interest.

Leveraging their monopoly on money creation, private banks earn vast sums from interest on loans that far exceed what they hold in reserves. U.S. banks currently have $3.3 trillion in reserves yet carry $12.5 trillion in outstanding loans. Borrowers pay real interest on imaginary money, funneling nearly half a trillion dollars annually into bankers’ pockets.

This is why skyscrapers bear the names of banks. Bankers get rich on money that doesn’t belong to them. Our monetary system transfers wealth to urban elites who produce nothing. The interest they collect is a one-way street paved with gold.

The Fed and inflation

Since the Federal Reserve’s creation, the federal government has continuously eroded the U.S. dollar through reckless borrowing. We have now accumulated $38 trillion in debt, and inflation has soared to over 3,000% since 1913, eroding the purchasing power of ordinary Americans.

The tidal wave of newly created “magic money” inflates the total money supply, devaluing existing dollars and making everyday goods more expensive. The Federal Reserve’s shareholders profit because they collect interest on government-issued debt, while bureaucrats, lobbyists, and corporations tied to federal spending rake in the cash. The rest of us, however, pay for their legerdemain through higher taxes and the devaluation of our wealth.

In the last two years alone, the wealth of the bottom 50% of Americans grew by just $1.5 trillion, while the wealth of the top 1% gained $11.8 trillion. Empowered by its control over money, the wealthiest elite has consolidated ownership of media conglomerates, major industries, and political influence. Elites have rigged the system, ensuring that the magical goose laying their golden eggs is never threatened by ordinary people.

Boom-bust — a banker’s best friend

Massive government borrowing coincides with colossal money creation, triggering economic booms. Speculative bubbles form in stocks and real estate, but these booms always lead to busts.

When debt-laden consumers default on loans, the money supply shrinks, and the economy grinds to a halt. Bankers and politicians, armed with insider knowledge, navigate these cycles with ease — profiting from the economy’s expansion and collapse. Meanwhile, the average American suffers job losses, foreclosures, and financial ruin.

We do not elect the elites who control this system. We are simply the drones who ultimately pay for it through higher taxes, inflation, and economic instability. The top 0.1% in America now controls as much wealth as the bottom 90%.

As Thomas Jefferson wrote in 1816, “The banking institutions are more dangerous to our liberties than standing armies.” He foresaw the threat posed by private banks controlling the nation’s currency, predicting they would “deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

It is time to end this system of financial serfdom. The power to issue money should be returned to the people where it rightfully belongs.