The Secret Creation of the Fed
45sReveals a hidden historical conspiracy about the Federal Reserve's origins that sparks curiosity and debate.
▶ Play ClipAI Summary
This video explains how the US Federal Reserve system and fractional reserve banking allow banks to lend out most of the money deposited by customers, effectively controlling the money supply. It traces the origins of the Fed to a secret 1910 meeting of bankers and notes that the reserve requirement has been lowered to 0%.
Chapters
[00:02]
Credit as Evolution of Power
The video claims that credit was the evolution of power and that it still dominates not just the US but the entire world.
[00:14]
Secret Origin of the Federal Reserve
In November 1910, a secret group of US bankers aimed to create the Federal Reserve Act to control the supply of America's money.
[00:27]
Fractional Reserve Banking Explained
If you deposit $100, the bank can lend out up to $90, keeping $10 as vault cash. Your account still shows $100, but the bank has created an additional $90 to lend.
[00:41]
Money Multiplication Effect
When someone borrows that $90 and spends it, the recipient deposits it in their bank, which can then lend out 90% of that amount, multiplying the money supply.
[01:11]
Zero Reserve Requirement
The Fed has lowered the reserve requirement to 0%, meaning banks can lend out the maximum amount of everything deposited under the Fed's guidance.
💡 Key Takeaways
💡
Credit as Global Power
Establishes the video's core thesis that credit is a dominant force in the world.
00:02
📊
Secret Fed Origins
Reveals a historical fact about the Fed's creation that is often overlooked.
00:14
🔧
Fractional Reserve Mechanics
Provides a clear, simple example of how banks create money.
00:27
📊
Zero Reserve Requirement
Highlights a significant policy change that has major implications for money creation.
01:11Full Transcript
[00:02] power, then credit was the evolution of it. And it still hugely owns not just the US, but the entire world. In November 1910, a secret group of US bankers, their goal was to create the Federal Reserve Act in order to control
[00:14] the supply of America's money. The Fed is owned by the smaller commercial US banks. And all of them were given the superpower to do what's called fractional reserve banking. Let's say you deposit $100 with your bank. Now,
[00:27] that bank can loan up to $90 of your money to someone else. The other $10 is reserved for you in case you need it. That's called vault cash. Now, your bank account will still show you having $100. But on the bank side, though, that $100
[00:41] deposit just created another $90 for the bank to lend out. Now, let's say someone borrows that $90 of technically your money. And then they pay someone for something that they bought. Then that person goes to deposit their $90 with
[00:55] their bank and that bank also gets to do the exact same thing and lend out 90% of it. Now believe it or not, that's how and now the Fed has lowered the reserve requirement to 0%. Meaning they can lend out the maximum amount of everything you
[01:11] deposit under the Fed's guidance. If a handful of banks get to decide who creates dollars and how many of them, then that's one way to own a
