Dr Ron Paul,the Congressman for Texas is achieving some remarkable results.Just a month ago less than 10% of Congress supported a bill to audit the US Federal Reserve Banking system.The Fed is a private group of banks which own the US currency.They loan all the money to the US Govt at interest.What most people don't realise is that the fractional reserve system of banking which we also practise,creates serious inflationary pressures thus perverting the productivty of the real economy.

The US Govt issues bonds[a bond is really a promise to repay the loan] to the Fed,who in turn loan money to the US Govt.The Fed being a distributor of money then loans to all the other minor banks. What Congress cannot find out,is where this money that the tax payer is indentured to repay,has gone.Much of it has not been used to support small/medium businesses.The suspicion is that the Fed is using tax payer money to buy up cheap assets.ie other banks.

The ignorance amongst some of these pollies is amazing.Many in Congress think that the Fed is a Govt owned body.At the very least, Congress should support a bill to see where the money has gone.

The lack of reponse to this all crucial issue of reforming the banking system demonstrates the gross ignorance of not only our general population,but the so called intellectual elites who seem totally ignorant of how this dysfunctional system works.

I'm an intellectual midget,a try hard,yet I can see the injustice and the perversions that have distorted our economies for the last 100 yrs.Money should be owned by the people,since it is they who produce the wealth.Banks are the least productive institutions on the planet,yet in the biggest recession since 1930,they are still making obscene profits.

Ron Paul is right,it is all about liberty and the operation of the free market under a system of balanced power.The power however is far from balanced,thus is now currently in a stage of collapse.

How can a free market operate with banking system diluting people's wealth with money based on debt and expectation? It failed in the 1930's and it has failed now!

If you’re a midget I would be hard to spot under a microscope.

I know you all are limited with your posts so I get that answering questions probably annoys you all…

But what is the fractional reserve system of banking? Is what you described that is happening in the US happening here?

Does the US government give the money to the banks in the first place to hold but then they loan it back to the government and charge interest?

Oh gawd, I just realised I don’t even know where money comes from.

Jewely.See Paul Grignon's" Money as debt" Well worth watching.It explains money really well.
http://www.youtube.com/watch?v=vVkFb26u9g8

Arjay: "See Paul Grignon's" Money as debt" Well worth watching.It explains money really well."

I watched all five. I really did have it in my mind that money equalled gold stored somewhere. I thought it did represent something "real".

But arn't the governments themselves worried about the bankers?

Would a first move to be make earning interest illegal?

Are we too entrenched now for there to be a way of dealing with it that doesn't include everyone on earth understanding the debt creating money thing?

Jewely.The system has been entrenched for over 300 yrs.It is like ridding ourselves of the Catholic Church.It is a traditional institution.That said,we need to tread carefully when considering alternatives.If there are restrictions put on the amount of money produced,then who is to decide who gets it and how much?If there is no price for money,then some central body issues it not under a free market situation.That means you can have a fantastic idea that cannot get financed because of some bureaucrat.The Central Banks should not be making such enormous profits since they are not the producers of real wealth.

I'm not entirely happy with Govt alone creating and distributing money but we can evolve a more balanced equitable system.

On balance,I think that there should be a price for money, ie interest,but we should all share in the profits created by money,since money represents human potential and productivity.

The debt slavery created by the World Central Banks must end.There is a better way and perhaps you can add to this debate with your ideas.