Czuch: Here's how it works:

1. The Federal Reserve is the central bank of the U.S.A. Nevertheless it is privately owned, and its shareholders secret.

2. Whenever the U.S. Treasury wants money, the FR prints the money. It doesn't give the government money it HAS! It creates money out of thin air & loans it to the government, with interest.

3. The government gives this money away, a little to poor folk maybe, but most to major corporations, oil companies, etc., and the rest it uses to keep itself afloat. As we know, with all its departments, including the Pentagon & clandestine operations, Homeland Security now, etc., the U.S. is a big operation.

4. As soon as the FR has printed new money, the value of the money you have GOES DOWN! It is more cash covering the same amount of goods in the market-place. So, in effect, when new money is printed, it amounts to taking a little from every citizen and then redistributing it as it sees fit, and as mentioned above. This is the tax that is killing America, the hidden tax.

5. Wealthy people are by far the biggest recipients of these government handouts. They have to pay a little bit of it back, in the form of higher prices (inflation) & being in a larger tax bracket. But they still benefit from the process, because they pay back less than they receive.

6. The common man, poor or middle class, receives far less government aid, yet his dollar is still deflated by the currency increase. He loses MORE in the bargain as a result. He must pay higher prices but his wages do not increase proportionately, etc.

7. Finally, most taxes go to pay the INTEREST on the Federal debt owed to the Federal Reserve. So, in a nutshell this is the process: the FR produces cash at no cost, which cash then, as if by magic, is equal in value to existing cash. All cash is reduced in value now, but to the shareholders of the FR, this fact is inconsequential, because it cost them nothing to begin with! They get paid back with interest for doing nothing!

So, the real winners, in the overall scheme, are the private bankers. And they pull the strings of not only the U.S. government but also the corporations to whom they "give away" money. This is not Econ 101, by the way. You get a little in Money & Banking. You get zero of it in the financial media. But there is the truth, for anyone to investigate.