The Federal Reserve system is a debt-based financial system because when money comes into existence in the banking system, more debt is created with each dollar as more interest is owed to the banking system which drains wealth from American people, transferring it to the banking system because the amount of debt to be paid back is always larger than the amount of money created when the loan issued.. hundreds of billions of dollars in interest is made off U.S. government debt each year as money that belongs to U.S. taxpayers is transferred to the U.S. government, which in turn is transferred to wealthy international bankers, the IMF, and other foreign governments.the Fed gives interest-free money to the big banks, which in turn lend it back to the U.S.the Federal Reserve bank of New York dominates Wall Street and is used as a tool of global banks that require people to spend their lives paying off debts to that profit the bankers.All of the answers are correct.

Other Options are wrong because 2) This option also wrong 3) Federal financing allows banks to…

Answered: The Federal Reserve system is a…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter17: Stabilizing The National Economy

Section17.3: Monetarism And The Economy

Problem 2R

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The Federal Reserve system is a debt-based financial system because

when money comes into existence in the banking system, more debt is created with each dollar as more interest is owed to the banking system which drains wealth from American people, transferring it to the banking system because the amount of debt to be paid back is always larger than the amount of money created when the loan issued.
. hundreds of billions of dollars in interest is made off U.S. government debt each year as money that belongs to U.S. taxpayers is transferred to the U.S. government, which in turn is transferred to wealthy international bankers, the IMF, and other foreign governments.
the Fed gives interest-free money to the big banks, which in turn lend it back to the U.S.
the Federal Reserve bank of New York dominates Wall Street and is used as a tool of global banks that require people to spend their lives paying off debts to that profit the bankers.
All of the answers are correct.

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