9:04 am in Uncategorized by Liz Berry
Cross Post from IfLizWereQueen
The Rich should pay higher interest rates than the poor.
The US monetary system is set up to perpetuate the rich getting richer and the poor getting poorer. This will never end until we remove most members of Congress who continue to support this system because it works for them. That is fact. Overall, this means stop voting for Democrats or Republicans. Realize that they are merely two heads of the same counterfeit coin.
Most of us know by now that the way money is created is by extending credit. The government and banks are the ones endowed with the power to create money. The rich don’t need credit. They can afford to pay for whatever they want. It’s the poor who need credit/money. However, you can only get credit if you have assets to post as collateral. But you only have assets if you are rich. Therefore, the rich get cheap money (loans at low interest rates) while the poor, when they can obtain a loan, often pay in interest many times the value of the loan. In other words, those who can least afford it pay the most. It would make much more business sense, not only for the poor, but for all of us, if the wealthy paid higher interest rates for their loans and the poor paid lower rates.
More on the Monetary System in the USA
Many Americans knew what was coming down the pike with the creation of the Federal Reserve and they didn’t like it. The cartoon below was created a year or so before the signing of the Federal Reserve Act. The Plan originally called for the establishment of a National Reserve Association with 15 regional district branches and 46 geographically dispersed directors primarily from the banking profession. The Reserve Association would make emergency loans to member banks, print money, and act as the fiscal agent for the U.S. government. State and nationally chartered banks would have the option of subscribing to specified stock in their local association branch. The plan was proposed by a Republican by the name of Aldrich. Since the Aldrich Plan essentially gave full control of this system to private bankers, there was strong opposition to it from rural and western states because of fears that it would become a tool of certain rich and powerful financiers in New York City, referred to as the “Money Trust”.
Typical with their hand-in-glove side show, the Democrats stepped in and worked out a compromise to the Republican proposal (private sector take all) and proposed a compromise. The Glass-Owen bill was created by two Democrat Senators. However, unlike the Aldrich plan, which gave controlling interest to private bankers with only a small public presence, the new plan gave an important role to a public entity, the Federal Reserve Board, while establishing a substantial measure of autonomy for the (regional) Reserve Banks which, at that time, were allowed to set their own discount rates. Also, instead of the proposed currency being an obligation of the private banks, the new Federal Reserve note was to be an obligation of the U.S.
If you haven’t noticed, that’s how the Democrat and Republican leaderships for the rich have been working for over a hundred years. First the Republican propose an outrageous scheme that is so one-sided for the rich that public outrage arises from the people. Then the Democrat leadership steps in and proposes a “compromise”. And we feel better because “it could be so much worse.” In the end, the majority of the people get the shaft–only instead of the full shaft, we only get 2/3′s of it. A recent example of this is the Obama Administration’s compromise for health care. A few Americans, as long as they can afford to pay the premiums, get a few breaks on coverage. However, the bill did nothing to bring down the over all cost for insurance premiums that Americans must pay AND it mandated that all Americans currently without insurance purchase it in 2016 from the very crooks who are currently ripping them off–50 million new customers for the crooks who are already ripping us off. This is a solution? You bet it is–for Wall Street and for the members of Congress–most of who own stock in these health insurance companies.