When we are speaking about central banks, we are all thinking about a nice traditional building with old style architecture, housing a huge machine inside that’s printing money, and deep below the surface of land, holding huge stores of gold. What is really behind those walls, only few people know.
Many of us we know that central banks have a main role, controlling the economy. They issue more and more money, giving liquidity to the banking institutions in order to lend the money to normal people like us, to build our houses, buy new cars, or to go on holiday. And then, after working like donkeys all our lives, we can pay them back, the money they printed, plus interest, with money that we didn’t print.
Many times, we hear people saying that the banks steal their money, or they lost it in the stock market during a financial crisis. My dear readers, nobody took your money. Nobody stole your money. Did you ever look closely at one of the banknotes you hold every day in your hands? Take a close look and read what is written on it: “ECB”, “FED”, “BOJ”, “BoE”, “SNB” … Those are the names of some of our central banks. As long as your name is not printed on the money, it does not belong to you. It belongs to them. They give the notes to you to rotate in the market, to buy something to eat, so that you will not die, and you will continue to live and work for them. So, as long as their name is written, on their money, they will give it to you, and they will take it back anytime they want, and how they want.
The other role of central banks is to control inflation. According to them, inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar or euro you own buys a smaller percentage of a good or service. The value of money does not stay constant when there is inflation.
According to me, inflation is defined as the gun used by central banks and governments to keep you on the same social level and in the same standard of living from the day you were born until you die unless you belong to the 1% of the earths’ population, or you are a pioneer, or by accident you discover something that will turn you into a multi-billionaire.
Did you ever wonder why central banks are afraid of deflation? If a country’s economy is entering into the territory of deflation, the central bank immediately devalues their currency in order to create inflation. And if they do not succeed in increasing inflation, then the governments introduce extra taxes on products in order to accelerate inflation. And the reason is simple: they do not want people to finish the month with extra money left over in their pocket.
Which One of the Central Banks is the Strongest One?
Many of you may think that the FED of the USA is the strongest central bank or Bank of England or European Central Bank. This is not the case. The world’s strongest bank is in the world’s smallest country and many don’t know about it. It is the SNB (Swiss National Bank) situated in Bern, Switzerland. Known as the most discreet bank, holding money and gold undeclared because of amnesty.
The National Bank Law was enforced on 16 January 1906. The National Bank began business activities on 20 June 1907, and is thought to then be founded sometime during either 1906 or 1907. SNB itself states that it was founded in 1907. Since then, the Swiss franc known as “CHF” has been in circulation. The abbreviation “CHF” is derived from the Latin name of the country, “Confoederatio Helvetica”.
How did a small country like Switzerland managed to survive so many years and remain the most powerful of all? Let’s go back to World War 2. All of the world was at war, except one country, Switzerland. Without an army, without belonging to any military alliance, and by keeping their neutrality, they succeeded. This is not enough, of course. Hitler, while he was creating his empire, was stealing gold from all European countries; and we are speaking about many tons of gold. In order to finance his long-lasting war, he needed to buy food, clothing, and raw materials. Since no country would sell him products in exchange for gold, he had only one solution: to sell the gold to the SNB and receive Swiss francs in order to pay for all the needs and finance his war. So, all those tons of gold are in the SNB. It was unofficially reported that around 500 tons of gold made it to the SNB. At that time, Switzerland was producing goods like textile and food and exported them to Germany. Those goods were paid for with Swiss francs. So, by the end of the war, all countries of Europe were financially destroyed except Switzerland because they had all the gold in the SNB, and people were paying for all their products and services with Swiss francs.
The SNB was in the mass media’s spotlight many times for smuggling Nazi gold, and many times it was forced by the USA to break its secrecy and unveil to the world the truth. Every attempt failed because there is no evidence that the gold came from Germany or that it was the gold stolen by the Nazis. All cases have been archived. The most shocking of all is the gold stolen from the dead bodies of Jews. We may not be speaking about tons, but the gold was still collected from their jewelry and their golden teeth, melted down, and sent to the SNB as gold bars. Recently, when some Jews sued SNB for 10.5 million Euros, the SNBs’ officials answered them with a smile and said they were disturbing them for peanuts. The case was closed again because there were no death certificates for the Jews burned or murdered and buried in mass graves.
In 1913, the Federal Reserve Bank was established and it began issuing Federal Reserve Notes the following year. Once free of the restrictions imposed by the limitations of available, physical gold for coinage, the quantity of Dollars in circulation increased dramatically. The increase was mostly in the form of paper money, not specie. The result was an economic “boom”, also known as “The Roaring Twenties” (1923-1929). But like all artificially-induced stimulus, it came to a crash in the fall of 1929. The burden of over-extended credit was the culprit. Prior to the formation of the Federal Reserve, money in circulation consisted of copper, silver, and gold coins, United States Notes, Silver Certificates, and Gold Certificates. All of these were non-interest-bearing, were issued directly by the US Treasury, and did not have any debt associated with their issuance. Notes issued by the Federal Reserve, however, were generally lent out, with interest due. So, for every Federal Reserve dollar in circulation, somebody needed that dollar to pay off a debt. During the Roaring Twenties, a lot of people took on debt, resulting in a great credit expansion. When only physical gold and silver was used as money, institutions were very cautious about lending it out because if the debtor defaulted, the creditor would be out some serious (sound) money.
President Franklin Delano Roosevelt’s 1933 executive order outlawing the private ownership of gold in the United States was arguably unconstitutional. But why did he do it? Many historians and economists point to efforts to get the economy moving again as the reason, the theory being that people were hoarding gold, and the velocity of money in circulation needed to be sped up. But the real reason for the gold confiscation was a bailout of the privately-controlled Federal Reserve Bank. And the evidence has been printed right in front of our faces.
The first step towards creating the ECB was the decision, taken in 1988, to build an Economic and Monetary Union: free capital movements within Europe, a common monetary authority, and a single monetary policy across the euro area countries. The ECB took over responsibility for monetary policy in the euro area in January 1999, two years before the euro was introduced into circulation.
The ECB is made up of three decision-making bodies: the General Council, the Executive Board, and the Governing Council. The General Council, which operates largely as an advisory body for the ECB, includes all of the EU’s national central bank governors, as well as the president and vice president of the ECB. The Executive Board of the ECB, the hub of day-to-day operations and decision-making, consists of the ECB president, vice president, and four other members, all of which are appointed by the European Council. The Governing Council is comprised of the entire Executive Board and all of the national central bank governors of countries that use the euro, and meets bi-monthly to adopt decisions on monetary policy for the euro area.
Is ECB a genuine independent body? I say no! I also call them the “Neo-Nazi”; “neo” being the Greek word “new”. With offices in Frankfurt Germany, and mainly financed by the German economy, ECB is created with one publicly unknown scope: to control all European countries financially and to lend to them with traditional printed money as an exchange for interest paid in real money or natural resources.
In conclusion, our central banks aren’t doing anything other than controlling the economy. Do not expect to become super rich in this life because richness belong to central banks.