The American Dream: 21st Century Serfdom

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by Keoni Galt on July 24, 2010

Go to school.

Get good grades.

Go to college.

Get a career.

Buy a nice car.

Buy a big house.

Go on many luxury vacations.

It can all be yours for the taking…just sign your name on the dotted line at every step of the way, and you too can have your very own version of the American Dream.

This is supposedly the keys to happiness and success and achieving “a better standard of living than our parents.”

It’s a grand lie, designed to get the average person to pursue this dream so as to enslave themselves into the system…a benign, subversive system of hidden serfdom.

Welcome to debt slavery.

And who are our Feudal Overlords?

The bankers.

And how do they exactly trap us into forced servitude for their profit?

The twin tools of Fractional Reserve Banking and Fiat Currency.

Wanna start a business?

Take out a business start up loan!

How do you pay for the overhead of running your business? Here’s a business credit account!

Wanna buy a house?

Here’s a 30 year mortgage…and don’t forget your mortgage insurance plan, so in case you are injured or laid off, you won’t have to make your payments for up to one whole year! (Gee, you bankers are just SO generous!).

Wanna get an education?

Here’s a student loan that will take you 20 years to pay off after you’ve graduated and still can’t find a job during the current recession.

Understand that our modern economy is based not on MONEY…but on DEBT. An obligation to promise to paying the bankers – WHO DID NOTHING MORE THAN TYPE A NUMBER INTO A COMPUTER IN THEIR BANK LEDGER SHEET PROGRAM AND – VOILA! – you too can sign up for 21st century serfdom to achieve the “American Dream!”

But don’t look at the Bankers in your local neighborhood bank as your Feudal overlord…he’s just a mid-level overseer of the Lord’s vast estates.

See, his bank, in turn, has to borrow a fraction of their funds from the central banking system so that they can turn around and obligate YOU in your pursuit of the “American Dream.”

Does this sound outlandish or confusing to you?

Let’s analyze this in as simplified terms possible:

Fiat currency = money backed by nothing more than the value it has printed on it. Because it is not backed by a substantial commodity, it is in essence an agreed upon fiction…in which parties exchanging fiat currency for goods or services agree to the value of that currency. Now, because fiat currency is only worth what the issuing institution says it is, there is absolutely NO check on that institution arbitrarily printing up more of it whenever they feel like it. In essence, fiat currency allows unlimited “printing” power.

However, most people think that the Federal Reserve prints the nations money supply and distributes the currency to the banks to circulate throughout the economy. What the Fed prints and distributes is but a fraction of the so-called “money” supply. (More like the “credit enslavement ratio.”)

Fractional reserve lending means a bank need only hold approximately 10% of money in an account at any time. So if you deposit $100 into an account, the bank need only hold $10 in reserve and lend out $90. This doesn’t sound so bad, right? Except that’s not how they do it. The bank takes your $100 and puts it on their assets side of their ledger. They now have 10% of a $1000 reserve requirement. So now they can turn around and get your fellow debt slave to sign up for a used car loan of $1000. In this way, $900 of fiat currency is “created” by the click of a banker’s mouse and your signature on the loan forms dotted line.

Ahhh, but it doesn’t end their either. See, the bank calculates it’s “reserve” by including all promissory notes, all credit accounts as “assets” which allows them to “create” even more fiat currency at the click of a mouse.

That $1000 loan ( which originally came from that first $100 deposit) has paperwork in which the loan taker is obligated to repay at interest over a set period of time. For the sake of simplicity, let’s just say that at the end of the terms of agreement, after adding up the interest and the principal, the debtor will have ended up paying back $1500.

Before the $1000 debtor even issues a single payment, the bank now has $1500 promissory note…which they than account for as a $1500 asset…which is 10% of a $15,000 reserve level.

Along comes Joe Blow the entrepreneur, who wants to start an internet porn business. He needs 15 grand to start up, so he goes and gets a loan from the same bank.

After signing his name on the dotted line, he now has a loan that when all is said and done, will gain the bank $20,000…which of course, is now a bank “asset” that is now a 10% reserve level for $200,000.

Here comes the next guy, and he wants to buy a house for $200,000…so he signs up for a 30 year mortgage….

Are you starting to get the picture about how fiat currency and fractional reserve lending actually work? From an initial $100 of actual cash from a bank depositor, a bank was able to leverage a 6-month $1500 debt obligation from one worker; a 5-year, 20,000 start-up debt obligation from a wannabe Larry Flynt; and a 30 year, $200,000 obligation from would-be homeowner. What started out as 100 of cold, hard cash from a single depositor, turned into 235,000 of owed debt servitude over the course of years by three other people.

This is precisely why the credit card companies (i.e. the huge, National Banks) are so eager to sign everyone up for credit cards, and they really don’t care if you max them out and are unable to pay them back. Your $20,000 credit card bill, while it exists on their ledgers as current and not in default (it takes you not making any payments for months on end before it becomes “default”), that $20,000 figure is a potential $200,000 reserve loan to some other would be serf.

All of these people, pursuing some aspect of the American Dream, obligated to the bankers who did nothing more than click a mouse and get the unknowing Serfs to sign their name on the dotted line. Oh, and note what happens when a home-“owner” serf defaults on his home loan, and the bank forecloses. They’ve now turned their fictionally created “fiat currency” into a tangible, real asset – the seized home.

In this way, our Feudal overlords send fiat currency downwards, while the real wealth moves upwards to them – the class of people who have the power to “create” money.

Now some caveats here – this is a very very simplified explanation for how fractional reserve lending and fiat currency have ensnared the vast majority of the country into unwitting, financial serfdom. Of course there are many variations, and all sorts of complicating factors…but the general overview is a fairly accurate summation of the system’s basic function.

This is precisely why inflation has occurred, devaluing the US Dollar exponentially ever since the Federal Reserve system was instituted in 1913. 1929% inflation since 1913. As money continually gets “created” by the corrupt banking practice, it puts more and more “money” into circulation, devaluing the purchasing power over time.

99% of us in America are in some way, shape or form, a serf for the bankers, because they have the power to “create” money out of thin air…by creating a debt obligation for which you must labor to pay off over the course of your working life.

And all these bankers did was click on the mouse and get you to sign on the dotted line.

With fiat currency working in tandem with fractional reserve lending, and we now have the means of ensuring that almost ALL business endeavors, all personal consumption choices, and almost all manners of subsistence are essentially done via debt to the bankers.

Remember the old saying…”He who has the gold, makes the rules?”

The new one is “He who prints the fractional-reserve, fiat currency enslaves the fools!”

Now get back to work! You owe it to our Feudal Overlords!

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