You may recall a post I made on December 21, 2009 that detailed an excellent video called the Secret of Oz.
The Secret of Oz is a follow up film by Ben Still to an earlier work titled, "The Money Masters: How Banks Create the World's Money".
In 'The Secret of Oz', Still argues that the United States is headed for a deep depression unless lawmakers address the root of the problem: mounting interest payments on the national debt.
America once abolished their central bank after a massive debate and political battle. The reasons bare stark similarity to many of the economic problems currently being encountered.
From 1836 to 1913 there was no central bank. This is also a period of massive American prosperity.
America could fund it's economic system without incurring any Federal debt.
In 1913 the bankers won the political battle and the concept of a central bank was restored: The US Federal Reserve was born.
Every time a dollar is created, it is a loan to the Federal Government... a debt that must be repaid with interest, money acquired through income tax (it's no coincidence the IRS and the concept of income tax was also created in 1913).
Above is an interesting little cartoon that attempts to explain the battle over the concept of the central bank... and the role of banks in the housing collapse and credit bubble of the last few decades.
All money is created out of debt, but it doesn't have to be that way. Nations don't have to borrow money from banks. Sovereign nations can create their own money - debt free - just as it was done from 1836-1913.
It's a broad, difficult concept to fully appreciate.
But as this new decade dawns, I believe - in review come 2021 - this topic will be seen as one of the BIGGEST issues of this decade.
This cartoon attempts to examine the issue. I encourage you to track down a copy of the Secret of Oz and check out this cartoon if the topic interests you.
From the description of this cartoon video:
- The AMERICAN DREAM is a 30 minute animated film that shows you how you've been scammed by the most basic elements of our government system. All of us Americans strive for the American Dream, and this film shows you why your dream is getting farther and farther away. Do you know how your money is created? Or how banking works? Why did housing prices skyrocket and then plunge? Do you really know what the Federal Reserve System is and how it affects you every single day? THE AMERICAN DREAM takes an entertaining but hard hitting look at how the problems we have today are nothing new, and why leaders throughout our history have warned us and fought against the current type of financial system we have in America today. You will be challenged to investigate some very entrenched and powerful institutions in this nation, and hopefully encouraged to help get our nation back on track.
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