America has been duped! 
The United States has a fractional reserve banking system, in short our banks can lend out 9x more money than they actually have in assets. So lets say your the bank and you loan out money, collect interest, and presumably make money. That's only half of it, imagine now as a bank you can get rid of the debt you hold in the form of mortgages and exchange it for cash now, not only do you not have to wait around for home owners to pay back the loan (the secondary market takes care of that) you get 9x more money than you actually have risked; making money from the borrowers intent to pay.
Let me explain, you have $1000 dollars in your vault. Government regs say you can loan out up to 9x more money than you have in your vault for a total $10,000. So you loan out the entire 10,000. Once a loan is signed by the consumer it has become legal tender and can be traded for US currency. Meaning simply that once mortgage loans are signed, bundled and sold on the secondary, you have essentially exchanged debt for cash.
Through government deregulation of our Banking system we have allowed into existence a monetary system where money, both paper and digital, is created by banks not the Federal Government as most people think. By a consumer simply promising to pay a arbitrary number you have created the equivalent in cash. Our Wall Street banking buddies co-joined with Freddie and Fannie have been building wealth in bundles by offering home loans to just about anybody and you wonder why? Now imagine pumping an additional $700billion into these same financial institutions.
It's the Fed's Absolutely Fabulous money making machine. Where any cave man could operate the helm of this monstrous fleecing device applied to the backs of American consumer cud chewers. Unfortunately the complications that arise from this system is mind boggling. Please watch this video in it's entirety, perhaps it will illuminate what appears to be udder lunacy.
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