John Williams: “The Fed is DESTROYING the Economy”

We’ve said it before and we’ll say it again- there are numerous serious problems with the Federal Reserve. For one thing, it is not a US government institution. The Fed is owned by heads of international financial groups who have no vested interest in the well-being of the United States or her people.

The Fed is totally unbeholden to the American people. It is thoroughly opaque in the way it operates and does not disclose its holdings to anyone in government or the public. We are told that the Fed holds all of the government’s gold, but no one has access to records, receipts, or any evidence at all that they even have any gold.

Worse yet, the standard education offered to students on the Fed is completely wrong. We are taught that the Fed prints money and releases that money into the economy when it believes economic stimulation is needed. We are told this is the Fed’s primary function. But the Fed does not print money. Banks do.

Here’s how it works. You go you your local friendly financial institution and say, “Hey, fruitcakes. I need some money to start a business. How ‘bout it?” Then the bank reviews your risk profile and decides whether and how much to loan you and at what rate.

According to the standard explanation, the bank uses the money of its patrons to back the loan. That’s why they’re so keen to hold your money for you, doncha know? But guess what kids, they don’t have your money. Your money and that of everyone else has been lent out several times over. Your bank is dealing in negatives, and when they extend that loan to you they are essentially printing imaginary money- money that’s worth about as much as your high score in Pac Man.

The banks are regulated by international finance groups, and they decide how willing banks will be to extend loans to people like you. And that is how they tanked the economy in 2008- by extending too many loans.

They knew it would break the system, and they did it anyway. And they will do it again.

So, while your bank is sitting on a pile of digital units that don’t represent anything other than our belief in their cooked books, the Fed appears to be sitting on piles and piles of imaginary gold. Don’t believe us? Just ask Germany, who desperately wants to know where all their gold is- gold they entrusted to the Fed. It’s gone.

So what does the Fed do other than act as a scapegoat for the banking system and hide imaginary gold? Well, according to John Williams of,

“The Fed is trying to raise rates. The idea is if you get higher rates, the banks will be able to make more profits on their lending. It will also encourage bank lending. Unfortunately, on the consumer end, it raises the consumers’ cost of borrowing as interest rates go up. It makes mortgages more expensive. It makes borrowing more expensive. Mortgages go up, people don’t buy as many houses. What you are seeing right now is effectively a recession in the housing market, in the construction area. Existing home sales have been down for six or seven months in a row, and it’s down year over year.”

You’ll notice he said that the Fed is “trying” to raise rates. If they had as much power as we’re told- you’d think they would just decree that rates on loans would be higher. But no, in reality, it is the foreign owners of the international banking system who are in charge.

Williams says the Fed’s goal is to normalize the system, but in so doing will deplete the ability of people to start businesses and for existing businesses to grow. Our opinion is that the Fed is not trying to “normalize” anything. They are trying to take a bite out of the prosperity Americans are enjoying as a result of Trump’s booming economy.

Williams continues, “The Fed is very open to quantitative easing, and from the Fed’s standpoint, I think we are going to end up in a perpetual state of QE unless they let the banking system reorganize and get a new functioning system. It’s still not functioning.”

His diagnosis is that we are on our way to another bout of hyperinflation, which is the primary mechanism through which governments steal the savings of hard-working people. Our advice is to invest in gold. It’s the only thing that’s never been worth nothing.

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