Ellen Brown – In the 2012 edition of Occupy Money released last week, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our GDP. That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, not just because of “Wall Street greed” but because of the inexorable mathematics of our private banking system. link
This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don’t take out loans, they aren’t paying interest:
* Exponential growth in financial sector profits has occurred at the expense of the non-financial sectors, where incomes have at best grown linearly, otherwise known as inflation.
* By 2010, 1% of the population owned 42% of financial wealth, while 80% of the population owned only 5% percent of financial wealth, exponentially increasing the gap between rich and poor.
* The implications of all this are stunning. If we had a financial system that returned the interest collected from the public directly to the public, 35% could be lopped off the price of everything we buy.
Why The U.S. Federal Reserve is a Ponzi Scheme for Global Rothschild Banks :
* In 2011, the U.S. federal government paid $454 billion in interest on the federal debt—nearly one-third the total $1,100 billion paid in personal income taxes that year. If the government had been borrowing directly from the Federal Reserve — which has the power to create credit on its books and now rebates its profits directly to the government — personal income taxes could have been cut by a third.
* Globally, 40% of banks are publicly owned, and they are concentrated in countries that also escaped the 2008 banking crisis. These are the BRIC countries — Brazil, Russia, India, and China — which are home to 40% of the global population. The BRICs grew economically by 92% in the last decade, while Western economies were floundering.
* It is not just federal governments that could eliminate their interest charges in this way. State and local governments could do it too. Cities and counties could also set up their own banks; but in the U.S., this model has yet to be developed.
* It’s not just the bailouts, though they are the most obvious example. The federal government, with its revolving-door that always opens on Wall Street, has failed to prosecute any but the most brazen and stupid crimes, giving implicit criminal immunity to the banks, while regularly passing wheelbarrows of friendly legislation (not to mention national tax-receipts) their way.
* In an October 30th article titled “Can Public Banks End Wall Street Hegemony?”, Willie Osterweil discussed a solution presented at the hearings in a fiery speech by Mike Krauss, a director of the Public Banking Institute. link
How to Recapture the Interest? Own the Bank. Create Our Own Local and Public Bank.
Join Global Non-compliance - Think global buy local
We can interpret a sentence to mean several different things…
– “current levels of interest rates have already made borrowing extremely attractive to all borrowers. It's easy to get a credit card! If you own property we can lend you money at 1%.” (Wall Street Journal)
– “Extremely low rates will be with us for even longer including negative interest as witnessed in Europe, so we can take more of your money.” (Globe and Mail)
- "Thank you for your business. Welcome to Debt Slavery! Oh yes, and keep paying your taxes!" (Rothschild Banks)
Fuck the FED.