War and Military History

Who pays for War in the US and How is it paid for?

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2007-07-07 17:15:57

The short answer is that the U.S. citizenry paid for the war

[WWI] and all wars since directly and indirectly. Directly through

their blood sweat and tears and taxes collected. Indirectly through

debasement of the currency and inflation via fractional reserve

banking's (Federal Reserve and affiliated banks) purchase of U.S.

Government Treasury Bonds to create money out of thin air. The

debasement of the currency and inflation are caused principally by

Federal Reserve Open Market Committee purchase of Treasury Bonds.

The Fed when it purchases U.S. T. Bonds will ALLWAYS have

sufficient funds in their accounts as this is where "money creation

from nothing" in point of fact becomes an accounting entry on the

banks books. In other words when the Treasury department deposits

the FED's check for the promise of the U.S. Citizens to pay back

the value of the bonds (remember a bond is the U.S. government’s

IOU on behalf of its people) the FED check will ALWAYS clear. The

banks love this because they now lend out 97 percent or more of the

money deposited at interest. Interest by the way that is largely

determined by the banks themselves as it is a function of how often

they engage in these usurious practices. Another reason banks love

the system is the banks cost of goods (i.e. money they lend) is

virtually ZERO which enables them on such goods an effective

infinite return on investment (graphically a vertical line). The

politicians love this because they now have a way of obligating the

people without their consent or knowledge. Since the money in

circulation is no longer redeemable in gold or silver the banks can

engage in these practices with very few understanding the true

costs and who is benefiting most substantially by these practices.

When currency was redeemable in gold the banks would have to have

enough gold to make good on their deposits. Without bill redemption

in gold or silver banks can lend more and more based on the

politicians more deeply obligating the people through the sale of

more and more bonds. The growth recently in the profits of the

financial sector and of the money supply is a reflection of these

policies and processes.


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