Where Does the Money Come From?

A couple days ago on the RushLimbaugh show he was interviewing Vice-President Cheney. Twice he asked Mr. Cheney where the monty to do these bailouts was coming from, citing numerous requests from listeners concerned about it.

both times Mr. Cheney talked about all other aspects of the bailouts, but not once did he address the question so deftly presented by Rush Limbaugh.

so, where does the money come from?

The term, "conpspiracy theorist" is a tag that public figures shy away from like the plague. But, in things political and monetary, it is no hokey-pokey idea to be shrugged off so easily. We Americans have an interesting monetary system. It is debt based, not gold standard based. If money is needed, the Treasury orders it from the Federal Reserve Bank.

If you've been thinking that is just another pocket of cash that the government holds, then think again. Ever wonder why, and to whom, the interest figure in the national budget is owed? Oh, sure, a lot of it is owed out on Treasury bills and bonds held by citizens, foreigners and foreign governemnts. Eventually, it all comes down to owing the Federal Reserve.

To pay off the national debt, our money supply--available cash in the economy--would have to be reduced--take what is collected from citizens in taxes and return it to the Federal Reseerve. Or, borrow more money to pay off the older debt. M-1 and M-2 are the labels given to the money supply.

So, the money to bail out those companies must come from the Federal Reserve. About 1820 or so, Nathan Rothchild stated that "give him control of a nation's money supply and he would not care what the country's laws are."

The Federal Reserve System is not U.S. Federal. It is a system of private banks owned by elite banking families of the world. It was begun in a conspiratorial gettogether of those banking folks back in 1913 at an island off the coast of the Carolinas and called the Federal Reserve System to mislead the American people into accepting it by law as the monetary system of the USA.

I understand that if Congress prints currency, it then sells the printed bills to the Federal Reserve at 10 cents on the dollar. Then the US buys them back at face value to put into our treasury. However, coinage is pressed and sold to the Feds at face value. Strange workings, eh?

Probably, we would not have had the economic expansion of the 20th century under any other, tighter system, but one can see how it has gotten us into great financial difficulty in relation to the world community of nations. And, sad to say, he who holds the gold, rules.

Mr. Cheney did not answer Limbaugh's questions because the answer would create more questions than answers are allowable at this point.

Gene Lawley