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Bobs Money : The Federal Reserve Example

This is a short demonstration to show the insanity of the United States monetary policy.

Bob is a tremendously wealthy individual with outstanding credit.  He is so rich and stable that people want Bob to keep their wealth safe.  Bob is able to create pieces of paper and trade them with other people for their gold and silver and precious gems.  The only value of Bob’s paper is that it is Bob’s guarantee that he will honor payments for goods and services he provides in exchange for those pieces of paper.

There is no guarantee that the piece of paper will be worth the same amount of goods and services tomorrow as it is today, but people are still willing to buy Bob’s paper because it is the safest in the world to keep their wealth.

Another rich man named Jim comes to Bob and proposes that he manages Bob’s pieces of paper.  Jim cannot make more paper unless Bob approves it, but he wants to manage it because he wants to charge people interest for borrowing some of Bob’s pieces of paper.

Bob has never made an interest payment in his life.  Bob is one of the richest men on the planet.  There really is no other way to do business than with Bob’s paper.  So one day when Bob approves another batch of paper be printed, Bob tells Jim that he wants some of his own paper to do some business and manage his estate.  Jim says “Fine, but you will have to pay the same interest rate as everyone else.”

Nearly a hundred years later, Bob is long dead and Jim is long dead.  Jim’s descendents are still managing Bob’s pieces of paper and Bob’s descendants are still managing Bob’s estate.  By now, Bob’s family has used over 10 trillion pieces of paper to do business. Jim’s family has enjoyed the interest payments from Bob’s family for those 100 years and in addition to the 10 trillion in debt that Bob’s family is paying interest on, other families are paying interest on an additional 40 trillion in debt interest.

As it turns out, over half of Bob’s family’s income is going to pay the interest payments to Jim’s family for the interest on Bob’s pieces of paper.

Bob and Bob’s family in this story is the United States.  Jim and Jim’s family are the bankers of the Federal Reserve.  The idea that our wealth and great credit established the value of the U.S. dollar, and that we are paying interest on our own dollars, valued because of our hard work is insane.  With one law we could change the accepted currency of the United States from the old Federal Reserve Dollar to a new U.S. dollar should strike fear into the Federal Reserve.  Instead they just sit back with the knowledge that Americans are too stupid to understand their game.

If you were Bob, you would refuse to pay interest payments to Jim for something that you created and who’s only value is your wealth.  Why won’t you do that to the Federal Reserve?  Instead you gladly give almost half of our tax dollars in direct profit to the bankers of the Federal Reserve that manage our money for us.  You’re pretty stupid.

Help, I am ItiA

  1. Zanna
    May 18, 2010 at 11:32 am

    I love it. I can’t wait for your next article, in which you tell us all exactly how to refuse to pay interest to the FR! Curious, where did you come up with the name “Bob” for the wealthiest guy in the world? -teehee

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