Why is the American Dollar sinking?

Answer 1

The Federal Reserve, is in reality a private bank in the Yellow Pages near Federal Express. It is NOT a government agency. It controls all production of money the US Treasury creates however, regardless. It keeps injecting huge and continuous amounts of 'Fiat', i.e. paper money backed by nothing into the system. This dilutes and destroys the real value of total dollars in circulation on a gradual basis over time, an effect known as inflation. As a result the prices goods and service you buy are usually not rising. The increase you see in prices now and then is because the purchasing power of the dollar you are using is constantly shrinking. The Fed enters these dollars into the system partly by forcing the government to borrow most of the money it spends and at significant interest rates from the Fed itself. And it deliberately prevents the US government from using it's legal right to print it's own money and never have to pay any interest on it either.

With this dubious monopoly some feel is a giant rip off, they force our government into deep debt it can never get out of and it makes the Fed perhaps the most powerful institution in the US.

Not to mention an insane interest rate charge that is always ongoing, growing and paid on paper money backed by nothing the Fed had printed originally out of just paper and nothing else. Nice work if you can get it.

Your tax dollars are first sent to government, but are simply redirected entirely to the Fed to service the interest rate cost on this artificial, manufactured and unnecessary "debt".

Tax dollars you pay are not given to the government to spend directly on expenses as you might think. IRS is in substance actually a mere collection agency for the Fed and not really the government. It is just made to seem that way. If you would like to know more study many free INDEPENDENT videos on on YouTube, Live Video, Metacafe and other video sites concering:

The Federal Reserve, Congressman Ron Paul, book author Webster Tarpley, and documentary film maker and radio show host Alex Jones among others. Also, I suggest you also bookmark and closely follow the home page of Inforwars.com daily.