When the Federal Reserve decides to up inflation from 2% to 3%, increasing the money supply by say $10bn USD, they don’t actually turn on the printing presses or mint new coins. This kind of money exists only in electronic form — they don’t need to go mine for gold, nor print paper money. This inflation is created “from nothing” (believe it or not).
Using an actual printing press to counterfeit money is laughably primitive compared to how the Federal Reserve creates money:
Hello Mr. Rothschild
Your balance is 0 (zero) USD
$ root > change 0 to 10,000,000,000
Your balance is now 10,000,000,000 (ten billion) USD
Thank you for using the Federal Reserve.
It’s not theft because it’s not stolen — it’s invented money, invented from nowhere. The Fed has the power to simply add a number to a database record that resembles some entity’s bank account (most likely other banks, but anything goes).
Hacking the Central Bank
With my colleague at eCash.io we’ve been scratching our heads — why don’t we ever hear of a heist or hack, someone adding a few zero’s to their bank accounts? Either it is kept well from the media, or it simply doesn’t happen. But that’s the hard part to understand. Whereas Bitcoin is cryptographically secured, and no single individual can “add some zero’s” to magically change 1 BTC into 1000 BTC, central banks’ electronic money systems are not cryptographically secured at all. They are literally just numbers in a database.
In principle, if you think Edward Snowden was a security risk to the NSA, imagine the sysadmins working for the central clearing houses of the Fed, or the European Central Bank etc., who have root access to alter numbers for anyone’s bank accounts. Why do we hear nothing of these people? Who are they? Where do they live? Of course, if we knew where they lived, they’d be in great danger, like Satoshi Nakamoto.
Fiat Money Is Just Numbers
It must be hard for people to imagine that all fiat (= unbacked) money is “just numbers” created from nothing. Imagine labouring an hour of your life for just minimum wage or less: if money is that hard to get by, it must be inherently valuable and very difficult to create it, right? Dead wrong:
- Most people can’t imagine that money can be invented out of thin air by simply altering some numbers in a cental bank’s database.
- If you get a 300K mortgage, the bank creates the money “from nothing” by changing a 0 into 300,000.
- Most people don’t understand that “inflation” means “to create money out of nothing” (again, changing some numbers in a database).
- When we read about bailouts, e.g. General Motors receiving billions, this is, again, just changing numbers in a database.
In each of these scenarios nobody actually has to cough up any real money, savings accounts are not involved, new gold is not dug up from the ground, no other rare minerals are shipped in and no new loans are made: the money came from nothing. The phrase “Obama turns on the money printing machine” is a misrepresentation, because you don’t need to print money to create money.
“Inflation” is the game whereby friends of the Feds receive free money in electronic form. Money that came from nowhere while the masses slave for their minimum wage. By the way, this is exactly how you control a populus: through inflation deprive the masses of a means to improve their lives, stealing their savings little by little and forcing them into blue or white collar slavery for their entire lives.
The life you’ve lived is a lie. There is two kinds of people: those who believe hard work leads to financial succes, and those who know it doesn’t but make you believe it does. The believers stay poor.
Creating money from nothing is power in its purest form. If the people would understand this, there would be a global revolution.
Central Banks have an incentive to cloud the truth with smokescreens using obscure language as “quantitative easing” or “tapering” or “fractional reserve banking”. Not to mention ‘no audits’ for over 100 years (apparently 2014 will see one for the first time).
But who then are the sysadmins who built these systems, assuming they are relatively upgraded to suit the 20th and 21st centures? I just can’t figure out why we never hear of some Anonymous group succesfully hacking (central) bank account records, dealing out billions to random people. Am I missing something here? Either way, this system is doomed. Greed has gotten a hold of it.