"What few Americans realize is that under the private central banking system, all currency enters circulation as a loan at interest from the central bank. The money you are paid for work, the money you pay for food; all of it first entered the economy as a loan at interest form the Federal Reserve. Loans to the Us Government, loans to other banks, loans to businesses and loans to consumers. As that money circulates, passing from hand to hand to hand to hand, it accrues interest on that loan, which must eventually be repaid through higher prices and increased taxation.
The trap of private central banking lies in the fact that the moment that first paper note enters circulation, more money is owed to the private central bank than actually exists. The only way that interest can be paid is if new money is created through more lending, with part of that newly created money used to pay the interest on the old money. The system can only perpetuate itself as long as ever-larger generations of new borrowers can be found to allow the creation of that new money. It is because of this basic principle that private central banks are little more than pyramid, or Ponzi schemes, albeit cloaked with an image of respectability."
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