The Cornerstone to the whole game...

--Ever wonder why we have inflation? Why do things get more expensive? For instance, why is gas twice as much per gallon as it was 20 yrs ago? This is usually passed off as a basic supply/demand cause-and-effect. As the world consumes the global supply of oil (including an annual increase in consumption), it would make sense that the price would go up proportionately. However, let me illustrate how this is not the case...
--When the U.S. was still minting REAL MONEY in the form of silver dollars (not the Eisenhower ones, which are 75%copper/25% nickel), a gallon of gasoline could be purchased for 25 cents. You could actually get 4 gallons of gas for $1! If you had held on to those old DOLLARS and not traded them in for green paper "dollars", the silver weight in each one is worth around $16 (90% silver - just under an ounce). They are certainly worth more than that as a collectable, but we can ignore that extra value here and just use the metal content. At $15-$16 each, you can still purchase the same 4 gallons of gas. Gas is no more expensive now than it was! It just takes more pieces of green paper to get it...
--Now this is not specific to gas or silver, for the same scenario can be painted many ways. You can use a gallon of milk, an average 2-bedroom house, a new car, etc. You can also use gold as your fulcrum rather than silver and arrive at the same basic conclusions. So the questoin remains...why do things cost more "money"? The answer is inflation. Why is there inflation? The short answer is U.S. Government debt. Whenever the politicians spend more money than they have, the average american citizen pays for it. If they didn't feel the need to hide the reality, they'd simply call it what it is... A TAX!!! However, if the average citizen knew they were being taxed that much (especially just because they won't balance the damn budget), they would do what all citizens throughout history have done. They would revolt. So they re-name it inflation and convince everyone it's an extremely complicated mathmatical equation or formula that we couldn't possibly understand. The hope is that we will all sit back and be thankful that there's someone smarter than us like Greenspan or Bernanke at the Federal Reserve making sense of it all. We leave it up to them to take care of avoiding economic recessions with perfectly-timed influxes of "relief". However, they are ABSOLUTELY NOT looking out for the best interest of American citizens. They are looking for the best interest from the American citizens...
--In the past, when a country wanted to go to war but lacked the proper funds, they would impose a war tax. If this was deemed to high, or there was enough internal resistance to the war, the citizens would revolt. Later, leaders came up with the concept of war bonds. This was not a direct mandatory tax. It was a loan. The government agreed to buy back these bonds at a specified later date with a specified rate of interest. This worked well in the case of the World Wars, but ultimately they are less effective for smaller operations. Generally, the smaller the conflict, the less support there is for it. By default, this means less people willing to loan the government money to carry it out.
--So war bonds have basically given way to U.S. Treasury bonds. The U.S. Treasury prints up IOUs which are purchased by citizens and governments worldwide. They are also purchased heavily by the Federal Reserve. This is where the fun stuff happens. The Federal Reserve is not Federal (it is owned by international bankers). It's also not a reserve, or at least not for the U.S. Government. It does physically hold the U.S. gold, but this is basically collateral. If we fail to pay, the gold is theirs. So when the government has an unbalanced budget, they give the 'Fed' IOUs in the form of Treasury bonds and in return, the Fed turns on their printing presses and gives the politicians the money to pay their bills.
--Now armed with piles of IOUs that they got in trade for printing other paper, the Fed loans these IOUs to the individual banks, again collecting interest return. This is the "Fed rate" refered to by the schmedia. The banks then loan out money based on these same Treasury bonds at a higher rate than what the Federal Reserve charges them. So far it all seems fairly basic business structure. The politicians create the product (IOUs). The Federal Reserve then acts as a distributor and wholesales them to the individual banks who retail them to citizens, businesses, etc. (Here comes the golden ticket)
--The banks operate on what is called fractional reserve banking. This is a magic system that only requires the bank to have 10% of what it is actually loaning out. In otherwords, to loan out 100K to someone to buy a house, a bank need only hold 10K. The Federal reserve covers the rest and collects their rate from the bank on the other 90%. Now, until you pay off the entire loan, who holds the title to the house?...the bank! Where do you suppose the bank puts this title?....it's asset or liability column? ASSET. How much can the bank loan out now? 1,000,000!!! Nice trick, huh? They can do the same thing with credit cards. You sign a contract that legally translates into a promissary note for THE FULL AMOUNT OF THE LIMIT, regardless of how much or little you charge. What column would that promissary note go in? ASSET. So strictly on your signature, the bank 'gains' $5,000 or $10,000. It can then use that as collateral to borrow ten times that from the Federal Reserve which it uses to pay your bills and loan the rest out at an inflated interest rate. The cycle repeats itself again and again. This infusion of 'money' is printed up and added to the existing pool of 'money,' thereby DEFLATING the actual value or purchasing power of each and every one in existence in your pocket, in your savings acount and around the world. This is the true supply/demand issue. We are flooding the world with green pieces of paper. Since we can't print silver, oil, cars, etc...the ratio of real goods to green paper MUST adjust accordingly. THIS IS INFLATION.
--There are other factors that ADD to inflation (government regulated minimum wage increases for example), but the core problem is the unbalanced budget and fractional reserve banking.
--As the value of the dollar continues to fall, countries around the world are having to get rid of them just to avoid losing large percentages of their reserves. China currently owns so much U.S. debt that if they were to sell 10% of their U.S. dollar holdings at one time, we would take a hit only people who lived through the Depression can comprehend. Unfortunately, this one has the potential of being FAR WORSE than the Great Depression.
--Avoiding the above-mentioned crisis will be used to transition into the North American Union and adopt the Amero as the new currency throughout Canada, America and Mexico.