posted on May, 22 2012 @ 08:02 PM
The Federal Reserve is a private banking cartel. It is not part of the U.S. government. It is owned by its member banks such as J.P. Morgan Chase and
Bank of America. I don't want to get too technical, but the Federal Reserve has many different ways to transfer printed money to the member banks.
Since 2008, the Federal Reserve has dispersed over $27 Trillion to major banks around the world to bail them out of the credit crisis. Much of that
money was given to the banks as interest-free loans or buying from them worthless derivative contracts but paying dollar for dollar.
The more dollars the Federal Reserve prints and places into circulation, the less the value of each dollar becomes. That is what is known as
There are not many ways the average person can combat inflation. The only way someone can protect themselves from inflation is to buy something of
limited supply that increases in value as fiat currencies depreciate. Historically, that has been precious metals.
So, as inflation is taking place, if the banks such as J.P. Morgan Chase don't control, manipulate, and depress the price of precious metals, the
public will purchase and place their savings in commodities like gold and sliver instead of in a bank savings account. That is the first thing that
will happen. As inflation continues to rise, soon the public will reject using paper dollars as a form of exchange and will demand precious metals
instead of paper money and then their printing press--which they use to pay politicians and buy them out of just about every other situation-- becomes
That's why the banks fight so hard to control the price of precious metals.