How the Fed’s Interest Rate Scam Robs Us Blind


by Mike King

THESE ESOTERIC (high-fallutin’) academic discussions regarding whether or not The Federal Reserve The Hebrew National Bank should raise interest rates or lower interest rates are as confusing as they are amusing. It’s confusing because – unless one has been taught how this criminal enterprise works – the whole “easing” vs “tightening” debate is enough to make the head spin. (ILLUSTRATION: Jewish Chairman of the Federal Reserve, Janet Yellen.)

But for those who have figured out the scam, it’s amusing to hear Fed-watchers and know-nothing analysts regurgitate the nonsense that your enlightened reporter was once taught to believe during Economics class at Rutgers University. Suffice it to say, the subject of Economics is just as corrupted with lies and fallacies as the fields of History and “Political Science”.

Many of the anti-Fed types, though far ahead of the average American when it comes to understanding the destruction which America’s privately owned Rothschild Central Bank has and continues to inflict upon the economy, are still unable to articulate the “how” of the Fed’s loan sharking, counterfeiting and market rigging operations. It is not enough for anti-Fed activists to have an instinctive revulsion to the Fed. To merely say to your average Boobus Americanus in the street, at your dinner table, or by the office water cooler: “the Fed prints money out of thin air” – confuses more than it enlightens.

Ron Paul’s “End the Fed” is definitely recommended reading — but we also need to have “crash course” versions that we can condense into an “elevator speech” for mere mortals to quickly grasp.

The reason that many anti-Fed’ers, are not able to do a better job at explaining how the scam works is because even most of the “intellectuals” who are on our side, including Ron Paul, often do a poor job of simplifying and explaining things. Not to worry, dear reader. Your clear thinking and clear writing reporter here has it all figured out and distilled into a nice easy-to-chew, easy-to-digest, delicious and nutritious ‘knowledge-sandwich’ for you. Enjoy.

The significance of the Fed’s setting of bank-to-bank interest rates; broken down step-by-step:
  • Every dollar injected into the monetary system has to be loaned, at interest, by the Federal Reserve and its members banks (your local bank).
  • Because all money is injected via loans of one type or another (Fed’s purchase of U.S. Bonds, corporate debt, consumer debt etc.) – there will always be more debt, (much more!) than there is money in circulation.
  • As old loans are repaid, money leaves the system (deflation). This decreases the money supply; which would fall to zero if new loans were not injected. A shrinking money supply means more bankruptcies and higher unemployment.
Been food-shopping lately? Now you know why everything is shrinking (“shrinkflation”).

The money that one borrower needs to repay an old loan MUST BE created somewhere else in the economy by another debtor who just took out a new loan! And so on, and so on, and so on…

  • One of the mechanisms which the Fed (Central Bank) uses to increase the amount of new debt money flowing into a debt-ridden system is to keep the rate of usury (a practice which should actually be banned!) as low as possible. Low rates = more borrowing = more debt-money “created out of thin air” (for the most part). Too much debt-money supply = inflation.
  • Therefore, the “business cycle” is not a natural occurrence, at all! “Easy money” = “Boom”; which leads to inflation because more currency is chasing goods and services (counterfeiting effect). “Tight money” = “Bust” because folks can’t get their hands on enough money to repay old loans. The “recession” / “depression” must ultimately be remedied by another round of “easy money”. And on and on and on the cycle of counterfeit money insanity plays out decade after decade after decade — which is why a loaf of bread has gone from 5 cents to $2 over the past 100 years.
  • In certain scenarios, when debt really gets out of hand, the new money is not enough to “stimulate” a sick economy (like today!) — in which case, there is high unemployment AND high inflation (pay no attention whatsoever to the Labor Department’s LIES about 5% unemployment and 1% CPI / inflation!)

In short, think of the debt-money supply as a bucket containing water, but full of holes. The water pouring into the bucket from your garden hose represents the new loans. The water escaping the bucket through all the holes represents the old loans being paid back into the part real / part make-believe bank-money system. The “challenge” for the Jewish “geniuses” at the Federal Reserve is to keep enough water in the bucket to prevent it from emptying out (Great Depression, Asset Crashes) — while not pouring so much in that the bucket overflows (high inflation, hyperinflation, asset bubbles, “overheating” economy etc.). Indeed, since the Fed’s inception (and even before)every, and we do mean every, “boom” and asset bubble was preceded by an artificial bank-induced, debt-based monetary expansion (too much water going into the bucket). Conversely, every, and we do mean every “Panic”, stock market crash, real estate crash and recession was preceded by the inevitable monetary “correction” / contraction (bucket emptying out as water flow is reduced and people scramble to get their hands on “liquidity”).


You know the old adage, “buy low and sell high”? Well, whether people know it or not, it’s really just another way of saying, “buy as the water level in the bucket is getting low; and sell after the maximum amount of new water has been poured in.” It is sound advice for playing a fundamentally dishonest game — a game in which the biggest winners are those who know in advance when the next liquidity cycle is going to be rigged. Those insiders make money on both the “ups” and the “downs”.

Though some Central Bankers appear to have played the bucket game more skillfully and responsibly than others; the fact remains, it is still a crooked, destructive, and INSANE game.

Under the stewardship of Yenta Yellen and Mr. & Mr. Obongo – whose damage is done via fiscal policy (taxation, excess regulation, excess litigation etc) – the privately owned Fed cartel’s only hope of avoiding delaying a very painful “correction” is to keep the water flowing in (through bond purchases, bailouts, purchases of bad debts, low interest rates, etc), which actually causes the pressurized water in the bucket to flow out of the debt-holes faster and faster with each new loan.

The hardest-hit victims of this zero discount rate policy (the rate which the Fed charges to member banks who must crawl to it, and which in turn serves as the basis for what banks pay to depositors) are the elderly savers. Example: If Grandpa has $300,000 sitting in CD’s at 1%, with REAL inflation at 5%; then he is losing about 4% annually($12,000 per year) in purchasing power. This is NO DIFFERENT that a mugger robbing Grandpa of $1000 each month, at gun point, and pumping it to the general economy and/or stock market by dropping the cash out of a helicopter.

But Grandpa will never figure this game out because the talking egg-heads of TV land and Academia have caused his mind to shut down with their academic jargon about “quantitative easing” and “stimulus” and “economic cycles” and “Open Market Operations”, blah blah blah — blah blah blah.

You are being robbed, Grandpa! And it’s far less complicated than you think. Just think: ‘waterbucket’, Grandpa — with holes in it.

The ONLY difference between the two robbery events depicted above is that the one on the right is legal, and made respectable by Sulzberger’s Slimes, The Wall Street Urinal, and the kept egg-heads of Academia.

Solution: An honest way to build better and bigger buckets of REAL money!


Step 1: Kill the Central Bank — like Andrew Jackson did!

Step 2: Abolish the evil practice of consumer lending at interest – aka ‘usury’. This will plug up the holes in the bucket and lead to a debt-free economy in which affordable cars and homes can once again be paid for in cash — as my middle class parents did 50 years ago! Commercial loans are OK because those are really just investments in future growth (more goods and services, hence, non inflationary)

Step 3: As the amount of goods & services (GDP) expands, proportionally expand the money supply (via the Treasury) with spending on useful public works projects or direct tax rebates. This makes the solid bucket bigger and provides more water (true wealth) for everybody, with zero inflation and zero debt for everybody.

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22 September, 2015 12:19 am

This is smart and the rabbirofessor, though comfy, is stupid — as ultimately, they always are. But, when this is done — the mass robbery game turns into assassination science. Any leader who ventures honesty in finance is subject to the jewish revolutionary spirit. This bank plan is totally good; but it must come with a structural integration that addresses life and stability threats from the machinations of the Tribe. Got Diamonds, need Spades.

Walt Hampton
Walt Hampton
22 September, 2015 3:19 am

Here is where the
rubber hits the road. Would YOU loan money to any
outfit that has the image of this arch-criminal
on it?

Alexander Noble
Alexander Noble
22 September, 2015 5:35 pm

Boobus Americanus is right. I seldom try to explain the horrors of the Federal Reserve anymore because it always follows the same basic cycle in my experience: 1) They can’t wrap their heads around the idea. 2) The finally get it, but doubt themselves because it’s too absurd to be true. 3)They finally accept that they’ve got the general idea, but reject it anyway because “the government would never allow that” 4) They reluctantly accept the fact that not only would the government allow it, it did it on purpose, but then insist there must be some other factor to mitigate all of it because debt-based money (money back by less than nothing) is a contradiction in terms. 5) They resolve the cognitive dissonance by slamming their minds shut, breaking… Read more »

Thomas Plaster
Thomas Plaster
17 July, 2017 8:29 pm

Good idea. Place only enough pieces of money into circulation to effect whatever amount of economic activity is occurring. Too many pieces of money and it cheapens the value by having too many pieces of money chasing the available economic activities (result: prices trend upward). Not enough pieces of money and there will more barter system activity; some product will not be made due to lack of confidence there will be someone with sufficient money to buy all of it. Problem #1: How and by whom will the determination of when to increase/decrease the money supply? It would seem that this would be a highly artistic-type skill, not readily taught to the masses in a classroom. Since the gov’t will run the money supply, how will it ensure a steady… Read more »