Chapter-7: Poverty & Central Bank

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Central Bank (CB) is the new king of our world now. Never in the history of the world had we such a powerful king. It controls the entire world using its money power. Every object in this world and every human being have been assigned a money value. By controlling this money power it can control every detail of our all activities.

As we have moved from different types of kings to the present CB type, the situation of the ordinary people have significantly deteriorated. Poverty is increasing in the world. Poor is getting poorer and the rich is getting richer. The democracy has completely vanished from both the people and their elected representatives. Nowhere in the world can the elected representatives use secret ballots to exercise their freedom and democracy. Money power controls everything now.

In this chapter we provide the details from publicly available data and research publications to show that, like physics and math, economics is also wrong.  The reality is that, it is the economic system that forced physics and math to remain wrong. From this we will realize how desperately we need to implement an alternative economic system, the Moneyless Economy. But alas! CB is very powerful; we must wait for a supernatural power, like a yogi or an avatar, to rescue people from such conditions. This will definitely happen, because the death process is a law of nature. Everything must die at some time.

Nobel Laureate in economics Milton Friedman therefore very justifiably said [Levy]: One unsolved economic problem of the day is how to get rid of the Federal Reserve. 


7A: Economic View


other research results published in peer reviewed professional journals. More specifically, this philosophy is on the features of the economy that pollutes the environment and human values, spreads poverty, and creates wars around the globe. This chapter therefore is not on macroeconomic theory that you study in schools. It is all about the truth of the economic theory that violates the laws of nature.

CB Power. Just like a soul can control every cell of the human body, as we have seen in yogic power chapter, similarly CB can control every individual of the whole world. Just like a soul can control how many white blood cells will be dead, similarly CB can control whether you will be dead or alive, you will be a billionaire or homeless. Without soul theory you cannot know a human being at all; in the same way without any knowledge about the CB you cannot know anything about the economy. The CB is the soul of our living society at the present time of history. Just like a CEO is responsible for all actions of a corporation, similarly the CB is responsible for all actions of all nations.

How it happened. We should constantly remember that everything is guided by the global destiny. The destiny rules; that is, destiny is at the topmost position in the hierarchy, and is depicted on the back cover of this book. Thus the CB was created as a result of long history over 1000 years, spanning multiple chains of cause and effect. And we were all involved during this period both directly and indirectly. Since we are also reincarnated souls, you and I both existed before and participated in this evolution of the banking system.

Nobel Laureate in economics (1973) Wassily Leontief asked,

“How long will researchers working in adjoining field abstain from expressing serious concern about the splendid isolation in which economics now finds itself?”[Halls].

The subject matter of this chapter is motivated by this gap. It uses the philosophy that a local view cannot be meaningful without a global space time context. That is, all subjects must be considered to get the universal truth in any subject, including economic theories. We must remember as pointed out in chapter-1 on truth that the truth is unique and universal over global space and global time and it comes only from nature. You and I do not have any capabilities to define truth.

How it does.Have you ever asked yourself where the money comes from? You get your money from your boss, he gets it from his company, the company gets from the local bank, and finally the local bank gets it from the central bank. But where does the central bank get it from? From nowhere, it just prints it from the thin air, and as much as it wants.

Imagine then what you could have done, if you could print your own money. You would print before going to the grocery store, print more when you want to buy a car. Print again when you want to travel. Thus there would be no poverty for you, no unemployment. You would enjoy a peaceful and happy life. The whole world will be happy. Heaven will come on earth.

If you can do all that, and many more things by printing money, then why do you really need money. After all printing money is free. Then why not just get everything you want for free. That will solve all the problems. You work free and get everything free also. Of course, you must work; everybody must work, contribute for the society, produce the goods we need for free, and then get everything free also.

But you are not allowed to print, only the CB can print, not even your government can. CB is a private bank, and no government of any country [TheFed-PF, p.2] has any control over its money supply. Thus the reason that you cannot print money is that you can be controlled by the CB. In the same way the government is also controlled by the CB. In fact, everybody is controlled by the CB using its free and abundant supply of money.

Complete control. It is not just controlled; the CB can even make you unemployed and homeless. Not only that, your government also will not be able to do anything for you, because it is helpless, it also gets money from the CB. Thus money makes you a slave of CB. You have to listen to your boss, no matter what he does to you, otherwise you will be terminated. Even if you listen to your boss, you can still lose



House Democrat from Florida, Alan Grayson, questioned Elizabeth Coleman, Inspector General (IG) of the Federal Reserve. In response IG said [Grim] that they have direct oversight on the board programs and operations. But they do not have jurisdiction to directly go out and audit reserve bank activities specifically.

Thus reserve bank activities are privately controlled. It is here we see that the origin of money power is in the hands of a private entity.

2.1 Lack of Foundations

You cannot compare any two objects of nature; they are all like apples and oranges. You cannot even compare two apples; they have different shapes, colors, sizes, and even tastes. You must have noticed that even the same apple has different tastes at different parts of it. Such is the characteristics of all objects of nature. There is a reason behind it, they are all souls, they reincarnate. Their past life matters.

It is impossible to describe an apple using real numbers or money. It is not possible to assign money value to any object of nature, even manmade objects. Two manmade objects cannot occupy same space at same time; therefore their environments are different. Even two integrated circuits manufactured on the same wafer can be different. Thus GDP cannot be really measured. It provides a value based on false notions.

The reference [BEA] says – “Some activities, such as the care of one’s own children, unpaid volunteer work for charities, or illegal or black-market activities, are not included because they are difficult to accurately measure and value.” If this is so, then how a CEO’s salary for his own company can be determined? How the work of an employee can be measured when he is getting paid? How do you differentiate the salary of a mechanical engineer and a graphics design engineer? How do you compare the creativity of a fork lifter and that of a research director? You cannot.

We should realize that material and labor, that is GDP, are physical and therefore are parts of nature. Thus the core of economy is a physical system. Since this GDP is physical it must obey the laws of nature or the laws of physics. The money is not physical, it is an abstract object. We have seen that this money is not necessary to create, grow, and maintain this physical economy in the chapter on Moneyless Economy (MLE). Thus we can see how this unreal or non-physical money interferes with this physical economy and violates the laws of nature. We also briefly cover the consequences of this violation.

Thus assigning money values and treating them differentially is an extension of very well hated cast system of modern Indian society. It demoralizes and creates great sins for all people involved, whether a Brahmin or not. It is discrimination at the most granular level. How can you create anything true using something false, like money? You cannot.

2.2 Wrong Fundamentals

In this subsection we see how false money helps to violate the laws of nature and creates poverty and misery for people. It is of course obvious because by using something false you cannot create anything true.

Pot & Bag

Assume that the total material wealth of a nation is equivalent to a pot of gold. That is, this gold represents all the automobiles, airplanes, missiles, roads, bridges etc., or in other words this is the GDP, the gross domestic product.

Similarly assume that the total money available is a bag of dollar bills. This is the equivalent of the largest monetary aggregate (M3) or the total money in the economy. This bag of money has an one-to-one relationship with this pot of gold. This bag of money can buy that pot of gold. It is this bag of money that was used to create that pot of gold.

By the law of conservation (LOC) this pot of gold cannot grow. This law says:

Mass and energy cannot be created or destroyed; it can only be transformed from one form to another form, or it can be transferred from one place to another place.

This bag of money cannot grow either, because this bag is equivalent to that pot of gold and is attached to it by the LOC.


We all know that the Fed can print another bag of money, out of thin air. It is a private bank and only it can print money without any restrictions, transparency, and accountability to anyone. Money is free for the Fed and it can give it to anyone it chooses, as we point out later.

This extra bag doubles the price of the pot of gold causing inflation. This extra bag violated the LOC, because only one bag was tied to the pot of gold, by one to one relation. The bag was not supposed to grow. But the falsity of money and the power of CB caused it to grow.

If this money is allocated only to the top fifth of the population then their share of the pot of gold will increase, changing the wealth distribution. According to the LOC, since the gold cannot increase, the share of the bottom fifth will then naturally decrease causing poverty. This violation of LOC caused the rich richer and poor poorer. Thus secretly printing money, and giving it to top fifth, creates poverty, and CB is responsible for that poverty generation. Rich has stolen the gold from the poor with the help of CB.

This transfer of wealth happens not only because the money share decreases for the bottom fifth, the price of gold also increases, and thus reducing their purchasing power. Thus the true measure of poverty is how rich someone is. The gap between rich and poor indicates the real inflation. Poverty and inflation should be measured by this income difference or income ratio of rich and poor.

Thus the main purpose of the Central Bank, is to transfer wealth, as clearly stated by the US President Abraham Lincoln (1861-1865) –

“Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic is destroyed (Grint, 2005).”

Milton Friedman, the Nobel laureate in economics, said that the US recession of 1930s was created by the central bank (Skarica, 2011). We show that the recession is the most powerful mechanism for the bulk transfer of wealth. Our recent experience of economic crash in 2008, and the analysis of our public data show that the above conclusions by Lincoln and by Milton are very legitimate and real even in our present times. We show the public data and their graphs later in this chapter.

No Win-Win

According to the LOC there cannot exist a win-win situation. When someone wins, someone else must lose. In every apparently win-win situation, a detailed analysis will always show that there is a third party who will be the loser. Thus the LOC says that the transfer of wealth must happen when someone becomes richer or someone else becomes poorer. Under this system the environment of earth will always be the loser.

Simultaneity law, as discussed in the first chapter, plays a very important role in the economic system also. Almost all objects of earth have owners and have been labeled by a price tag. Not only all physical objects, and all human souls are directly connected by this simultaneity law, all economic objects are also connected. This is more so, because by a false mechanism of money, every object and human being got tied to each other, by an one-to-one relationship with money assignments. Therefore no single person or no two persons can make any transaction in a win-win situation. The involvement of the entire economic system always connects all transactions with all other people. The LOC will then force many others to lose.

Ordinary people work and produce wealth, but it is stolen in the house of rich people. Bottom fifth suffers the most. Profiting, giving higher salary, printing money and giving it to rich people and without contributing to GDP, creating recessions, interest charging are all the methods that central bank has designed to transfer wealth, makes some one richer and someone else poorer. In fact the entire financial system is a means to transfer wealth. That is because the financial system can redistribute the quantity of money.  And therefore, by one-to-one relation, redistribute the pot of gold also.

Nature is Free

The most important characteristic of nature is that it is given to all of us as free. Therefore anything we produce from nature has to be free also. The air is free, yet nature is not controlling its supply, it treats us equally, and allows us to use it according to our needs. We are also not hoarding it and know intrinsically how to properly use it.

When rain showers, similarly, it does equally over all of us, it is free and yet we develop according to our own characteristics as is well known, some plants give red flowers some give yellow. Thus we intrinsically know how to use the nature, satisfy our needs according to our requirements, and manifest ourselves in the way we want. These characteristics are embedded in our mind, body, and soul. We have learnt this because we evolved life after life, experiencing nature over billions of years and guided by the reincarnation law. Thus all of us intrinsically know how to grow without exploiting each other and the environment. All we need is the removal of the guns, i.e. the money power, which is preventing us from our spontaneous growth.

We also know that we cannot take anything away from nature. Since it is free, there is no need to take anything away from it. There is no place to take it also. We are all here on this earth. One day we have to die, and when we go, we will not be able to take anything with us. So nature is free and will remain free forever and for all people. Then why try to hoard things for us? A comfortable life and with any lifestyle you want, can be provided by moneyless economy (MLE), as we have discussed in another chapter. The free nature is already designed to give us anything we want. None of us can do anything better than the natural economy, which is MLE.

Since by simultaneity law we are always connected, if we become rich, obviously by stealing form others, we will still remain connected to each other, because we are all souls. The suffering of the poor will cause suffering of the rich. This suffering will be manifested in many different forms to both groups.

People are Free

The only other thing we may want is to control the life of other people. But can we really control the life of other people? No, we cannot. We can take the home away from a person, but the person will learn to survive as homeless. But this homelessness will affect all of us also, because of the simultaneity law of nature we are all connected, not only physically, but buy the yogic power of all souls. We can take the food away, but there are beggars all over the world and they are surviving also. Again, their poverty and misery will affect all of us in many different ways that we cannot even imagine.

When we make someone fool, we actually become fool. Eventually one day we will realize this universal truth in the core of our hearts. The foolish person is really a gem; he gave you the happiness, if you think it so, by sacrificing himself. The person, who sacrifices most, learns to love you most also, and his love will eventually heart you too. The free nature can do miracles. We have seen the nature of yogic power that we all have, hidden in our souls.

Thus we should recognize that people are free in this world. There cannot be any price tag for any person or any object. Everyone will be more than happy to work free for anything or any process as long as every system follows the laws of nature. That is, there is no accumulation of wealth and any dictatorship or brutality over people.

However, we see that the Central Bank (CB) based economy is forcing people to remove this fundamental law of nature from peoples’ mind. CB is giving more money to some people and no money to many. People are trying to accumulate wealth in their homes, with the active support of CB, creating large scale poverty. We will see, in this chapter, how IMF actually caries out such a systematic carnage in countries requiring bailout money. CB is trying to control all people of the world by carving their freedom to make them miserable. This creates discrimination, mental and physical violence, requiring need for police force, thus further alienating people from their intrinsic affinity to nature developed over billions of years. A system that violates and forces people to violate the laws of nature will not be sustainable.

Money is Free

Just like nature is free so is money. Money is free because it is not an object of nature, therefore it is false, and is abundantly available. We know that CB can print as much money as it wants without any constraints, accountability, and transparency.

Since money is free we do not have to return it also. What is the point in returning something that is free? Thus there cannot be any debt also. Government cannot have any debt to CB. CB also should not claim its money back, because it did not cost anything to print money. Moreover, most of the money is on the computer these days, therefore it does not even require printing cost. There is no price difference between $1M and $1T on computers.

Thus everything associated with money is false. The debt is false, economy is false, and the money itself is false. This is obvious because money is not an object of nature and therefore is abundant. Thus CB is just bullying all of us. It does not have any real power. However it has purchased everybody and everything using money, including all the guns.

Profiting is Cheating

Let us examine how profiting transfers wealth. Consider a company that manufactures writing pens at a total cost of $5 per pen. Now assume that the company sells it at $15 per pen making a profit of $10 per pen. Thus the cost of the pen for the CEO of the company is $5 but for you and me it is $15. Therefore every pen is taking away an extra $10 from all of us. This process of profiting helps to take money away from people and to accumulate to the hands of a very small group of people creating inflation and transfer of wealth. The interest charging process is essentially the same activity also. Anytime money is accumulated, by LOC the wealth is transferred, and therefore poverty is increased.

Profiting is a method of cheating or stealing. However the foundation of capitalism is profiting. Thus we are living in a society, where basic concept or foundation is to cheat everybody. Everybody is cheating everybody; it is not just financial cheating. It is cheating at all levels, husband is cheating wife, father is cheating son, mother is cheating daughter. Professor is cheating students, government is cheating people. How can such a society do any good for anybody? This is in every country now. All these are very immoral activities and are the consequence of false money controlled by central bank. Just like a CEO is responsible for all activities of a corporation, similarly the CB is responsible for all activities of the entire humanity.

Thus accumulating wealth using profiting, interest charging, higher salary, and printing money without producing GDP etc., are processes of stealing from others. This creates poverty. The persons who are acting this way are engaged in immoral activities; and they know that. This causes them to spend sleepless nights in fears of morality. Every soul knows what morality is, as we will learn in the soul theory chapter, it is an intrinsic quality of humans, and no one needs to be explained about it. But unfortunately we cannot get rid of central bank, it controls the military power. This is the global destiny in this era. We just have to watch helplessly.


7B: Economic Characteristics

3. Independence of CB

“The Federal Reserve System is considered to be an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive branch of government.” [TheFed-PF, p.2]

Bloomberg News

The Federal Reserve and other big banks fought a law suit filed by Bloomberg News, unsuccessfully, to keep the amount of bailout money transactions secret. The details of the released document from the Fed show that banks got $7.77 Trillion dollars by March 2009. The US GDP during 2008 was $14.2 Trillion [Ivry]. Initial estimate of this secret transaction was $12.8T [Pittman], it will never be known what the exact amount was.

You can thus imagine how much secret or black money is floating in US Economy and for that matter in all countries of the world. This will indicate all the economic data that people are using are all wrong. In other chapters we have shown how math and science are wrong, now we can see why economy is also wrong. We have built a house of cards using false money.

The real inflation is significantly higher than what we see in the news and published reports. All the theories and algorithms that have been researched to estimate inflations are all wrong. This $7.77T is only one report, which Bloomberg News forced the Fed to release; there is no guarantee that such things are not happening every year, year after year. This can happen because the Fed is a private bank, and there is no oversight by the government on the real money power of the Fed.

This Bloomberg News discloser report establishes many truths: (a) The Fed does not want to be transparent and accountable. (b) Government also cannot audit these transactions. (c) The real financial economy is very fragile, false, and requires constant bailout to maintain it. It is very similar to the notion that if you tell a lie then to maintain that lie you have to keep inventing bigger and bigger lies. (d) You cannot run a real economy of physical products and services using false money which is not an object of nature. (e) Privately controlled money supply cannot know how to run public economy. Public will always suffer as we can see all over the world.

Sherrill Shaffer, a banking professor at the University of Wyoming in Laramie, and a former chief economist at the New York Fed,  said “Even though the Treasury was in the headlines, the Fed was really behind the scenes engineering it” [Ivry]. Thus we see that the long hand of money power is controlling everything according to its wishes and people are powerless.

Money Power

What is money power? The person who can print money has the money power. The CB has this power. It can print any amount, and give it to anybody it wants to, without any restrictions, as we have seen in the Bloomberg News report. Governments do not have any control over this money power of CB. Thus money power is in private hands. The interest rate, the CB charges is also unconstrained. As we have mentioned in previous chapters that money is free and its supply is unlimited, because money is not an object of nature and does not follow the laws of nature.

The entire money power is therefore an unethical system, which propagates and imposes corrupt activities throughout the world down to every individual being. This has changed the human values. Anyone in opposition can now become a victim of Galileo Phenomenon; and we see that it is happening all over the world in every decade.

The heart of capitalism is this money power, it is in private hands, and therefore there is no free market. Since there is no accountability and transparency of this money power, there is no reliability on any economic data. All economic data, supplied by the Fed or by different branches of government are all false. If you do not know how much money is floating in the market, then how can you create economic data?

Unless the intellectual community begins to realize and express that the money is not needed to run the economy, the money power cannot be removed and MLE cannot be implemented. Money is controlling all activities of the world for more than two thousand years. Clearly the CB is the source of this money power now. As mentioned before, CB is privately owned and cannot be controlled by government [Greenspan]. On the other hand using the money power, the CB controls all activities of the society including education and religion. It controls all private and government organizations, CIA, FBI, including military, and police force of every country. Most importantly majority of the population also thinks that money is necessary. Thus CB is the real king of our time, as was predicted by [Quigley, p. 324].

Actually whether the CB is private or not is not important. The important idea is who controls the money: its supply volume, its interest rate, ability to print money, and giving money to anybody it wants to, its unaccountability and non-transparency. That is the money power and it is in private hand, and the government does not have any control over this money power in any country.

Stated objectives

The stated objectives [TheFed-PF, p.15] of the CB are the following. (a) Keep maximum employment (b) maintain stable prices (c) moderate long term interest rate and (e) contribute to higher standards of living.

The reality is that these objectives are not happening in our economy. We are still trying to recover from a major failure of economy, the recession of 2008. How can such recessions happen over and over again? The data, the graphs, and research reports show that the above reality is either intentional or CB does not have any knowledge, capability, and experience to run an economy. If it is intentional, and we show that is indeed the case, then it will prove the independence of CB; and that the CB is the King.

At one time the objective was to provide full employment, now it states maximum employment, without giving any number. The unemployment rate in Greece hits 27.9%, youth unemployment is at 58.8% in 2013 [Reuters]. Interest rate is beyond comprehensions. Big bank credit card companies are charging over 20% interest rate. Some money lenders are charging more than 50% interest to the poorest economic community. The economy should support the poor and vulnerable people most; instead we see that CB is exploiting them the most.

Standard of living of the bottom fifth of population is steadily decreasing over the years. On the other hand the top fifth’s income is steadily rising. We show that these are facts with publicly available data and their graphs in this chapter.

Thus we can see that the central bank does not want to run the economy along its stated objective. In fact a private body cannot run public systems; their view points are totally different. The philosophy of a private person in the present economic system is how I can take more; on the other hand public expects from its administrators the attitude of how I can give more and serve better. A King should not be exploiting its own people.

The underlying truth is that money is false; you cannot create anything true using something false, like money. Present society that this economy has created is nothing but a house of cards. To keep it erect every now and then we have to rescue it at the cost of massive catastrophe for the people. This analysis shows that there is no difference between the foundations of economics and that of math and science. They are all run by the same false money.

Textbooks on CB

If you read any undergraduate textbook on macroeconomics, you will not find the following facts about the central bank: (a) It is a private bank (b) Only this bank can print money (c) Governments do not have any control over the money supply and its interest rates (d) CB has unlimited supply of money and it can give it to anybody it wants without any restrictions, and (e) Money is free for CB.

Thus CB successfully influenced all the economics professors of all universities not to disclose in their textbooks: the freedom of the CB and its inner powers in controlling the economy. This is similar to physics textbooks also. You will never find a physics textbook discussing about the assumptions behind each theory and their consequences. In reality we are all part of money power and helplessly helping to propagate the all round lies.

In the absence of transparency, as seen by the Fed’s refusal to provide information to Bloomberg, no free market economy can exist. Roger (Garrison, 2009) writes

“Of all the losses suffered during the current recession (of 2008), one of the most notable (and well deserved) is the loss in reputation suffered by today’s macroeconomics textbooks.”

This is indeed true as we have also pointed out that the Fed controls the interest rate (FFR) completely independently, destroying the concept of free market theory at the core. If the Fed violates it then why do you think other banks and the CEOs will not do the same? In reality they are the agents of the Fed.

CB Chairman is Powerless

The position of the Chairman of the Federal Reserve is just a decorative post. It is the interface between the private owners and the government. The cost of such an office and its subordinate staff is not at all any problem, because the money is free for the Fed.

Ben Bernanke was the first person to detect and publish a characteristic of interest rate and unemployment data of the Fed [Das, 2011-2]. This was detected when he was professor at Princeton. Later when he became the chairman of the Fed, he could not control this characteristic of the interest rate to prevent the 2008 economic great depression, which happened when he was in office. Thus it shows that the chairman does not have any power to control the Fed. This is quite a natural problem in capitalism: no employee, whether a CEO or a manager or a mail man, has any power over their bosses of the company.

Carol Quigley points out [Quigley, p. 327], that these high ranking officers are puppets, they know that, and they can be removed from their positions at any time without any problem. No investigation will be performed for such actions. Greece Prime Minister George Papandreou had to resign within two weeks [Donadio] because he declared that he would put the bailout plan of the central bank for public referendum. Note that Prime Minister was a publicly elected official of a country. Thus money power can do anything it wants to, using its free and abundant supply of money. If a prime minister does not have power to stay in his office then how can a chairman have?


7C: Funds Rate

4. Federal Funds Rate (FFR)

All the banks are required, by law, to maintain a reserve deposit amount at the central bank (CB). The Fed (CB) does not pay any interest for this reserve amount. For many business reasons this reserve amount changes every day. At the end of each day, the banks having low reserves borrow money from the banks with higher reserves. The banks charge interest for this exchange. This interest rate is known as the federal funds rate (FFR). This FFR is set by the Fed independently, without any market conditions and any external constraints.

This is the lowest interest rate that anyone can get. All others pay interest that is more than this rate. Thus the amount of money supply and the core interest rate (FFR) are fixed by the Fed without any oversight and accountability. For more details please see the paper [Das, 2011-2].

Using the FFR the Fed can control everything in the economy. This is because of the simultaneity law of nature, even though FFR is not an object of nature.

“A change in the federal funds rate, or even a change in expectations about the future level of the federal funds rate, can set off a chain of events that will affect other short-term interest rates, longer-term interest rates, the foreign exchange value of the dollar, and stock prices. In turn, changes in these variables will affect households’ and businesses’ spending decisions, thereby affecting growth in aggregate demand and the economy” [TheFed-PF, p.2].

The above quote shows how pervading the money power is. A small change in one thing changes the activities of the entire economic world. By their own admission the FFR affects every individual in our world. Yet this money is artificial and false.

The paper [Modeste] explains in more practical way how FFR controls the entire economy by giving the straight forward Keynesian logic –

“An increase in the federal funds rate is expected to lead an increase in short-term interest rates as the cost of funds to lenders increases. With businesses and consumers responding to the higher interest rate by reducing their expenditures, economic activity is expected to fall, thereby, leading to an increase in the unemployment rate”.

The above logic is very simple and that is what is actually done by the Fed. The Fed keeps increasing the FFR until the borrowing of money by businesses reduces significantly causing very high unemployment and eventually crashing the economy. We show from real data of FFR and unemployment that this is indeed the Fed is doing.

Ideally, if you keep the interest rate at zero, and supply money as much as required by anyone, then the economy will run in full throttle. But if you change FFR to higher value then you are trying to control the economy at lower level. That is why FFR is the root cause variable, or independently controlled variable. FFR does not depend on market. We will show it with data and graphs. However, everything is controlled by the simultaneity law, and nothing is isolated.

4.1   FFR & Unemployment

In this section we show with the data and their graphs that the central bank is systematically controlling the unemployment rate by manipulating the FFR. The unemployment data is taken from Bureau of labor statistics of the US department of labor (DOL, 2010). The details of this data are given in the document (DOL, 2009). The Federal Funds Rate (FFR) data is taken from the Fed database (Fed, 2010).

The two graphs are plotted in Figure-7.1. The green graph represents the interest rate data and the red graph represents the unemployment data. Both graphs are numerically processed little bit, without changing the structure of the graphs. Notice that y-axis has a maximum value of one. Thus we have normalized both datasets by dividing each dataset by the maximum of their absolute values.

As the Fed increases interest rate, the effect is not felt immediately in the economy; we found an inertial delay of about three years, in the unemployment data. Thus we have aligned the two graphs to highlight how closely they are related. A left shift of three years for the unemployment data is ideal for these graphs, which gives a correlation coefficient of 0.92701 between the two graphs [Das, 2011-2].



The width of the bands defines the length of the recession period. This recession data was collected from (NBER, 2010). The Figure-7.2 is another way to show the relationship of the funds rate and the recessions. Here we superimpose the variations in the FFR over the recession bands. The graphs show that every recession is created at the peak of the FFR values. The Fed keeps on increasing the funds rate until the recession begins.

In (Dimitrov, 2006) the authors presented a graph similar to Figure-7.2 and confirmed that the funds rate shows onset of two recessions during 1979-82. In (Belonga, n.d) the authors comment that the conventional wisdom is that funds rate goes up before recession and goes down after, with data between 1985 and 2009. Bernanke (1992) was the first to show graphs like Figure-7.2.

4.3    Gross Domestic Product (GDP)

GDP is defined as the market value of the final goods and services produced by labor and property located in the United States [BEA, p.2-7]. GDP can be measured – as the sum of goods and services sold to final users – like persons, businesses, governments, and foreigners.

BEA provides the following statement [BEA, p. 1-2] – “In particular, the quarterly estimates of inflation-adjusted GDP provide the most comprehensive picture of current economic conditions in the United States”. Clearly this statement cannot be correct, because the inflation cannot be known, since the total money in circulation is secret as we have seen in the Bloomberg report. Therefore GDP data cannot be correct.

Everybody is working on false data, using false algorithms. CB knows this situation, but CB does not care for people or government. Why then care for such small issues, when the entire economy and its foundations are false. When the entire economy is manipulated, by money supply and FFR, then why bother trying to accurately measure GDP, generating data with high details, producing complex algorithms etc. This is like garbage in garbage out phenomenon. However, the activity gives jobs to many people.


Unfortunately money power (CB) will not allow such a moneyless system.

4.4    FFR & GDP

Figure-7.3 shows the GDP graph and the data was taken from (NEA, 2010). In Figure-7.3 we have plotted the normalized data of FFR and GDP variations. The GDP data was shifted left by two years to make the peaks match. We have also scaled the data using the following relation 0.8*(1-gdp) to graphically highlight the correlation. A delay or lag of 2 years in the GDP data produced a correlation of 0.8306.

Since we know that the funds rate is the driver, we can see from Figure-7.3 how it causes the GDP variations. Every time the funds rate goes high, the GDP goes low; this in turn causes the recession to begin as we can see from Figure-7.2.

4.5    Wealth Transfer

Crating recessions is a major activity of central bank to purge people for transferring wealth and accumulating it in the hands of a small group of people. By law of conservation, which says there is no win-win situation, another group therefore will become larger and poorer. We show from the income data, which is a measure of wealth of people, how after every recession, bottom fifth becomes poorer and poorer and top fifth becomes richer and richer. We have taken the income data from US Census Bureau (USCB, 2010).

The Figure-7.4 shows the income of the bottom fifth of the population. The graph clearly shows that their income is consistently going downwards since 1976. The graph occasionally went up for short period of time, like in 1967, ’73, ’94 etc. But it has an overall downward trend and every recession has a visible downward impact on the income. The next graph, Figure-7.5, shows the income of the top fifth of the population. It is clear that despite the recessions their income is growing persistently over all the years. Thus there is a truth in the statement that the rich is getting richer and the poor is getting poorer.


gold by the LOC, money accumulation means gold accumulation i.e. transfer of wealth. Thus inflation means poverty. The amount of inflation is directly proportional to wealth gap between the rich and the poor.

Because of unemployment, during a recession, a poor woman can become homeless very soon. And another rich person will become the new owner of her home thus transferring the wealth. The wealth cannot be destroyed according to the LOC, it can only be transferred. Large number of banks and businesses were forced to fail by the policies of the central banks, during the two great recessions of 1930s and 2008. Millions of people were made unemployed and homeless. And exactly the same amount (Bates, 2003) of wealth was transferred to the rest of the population by LOC. Thus recession is the best way to bulk transfer of wealth over a short period. Profiting and interest charging transfer wealth slowly, persistently, and over longer time frame.

The recession is another way to keep the salary of bottom fifth at low rate. More you beat them with unemployment more vulnerable they will become and will be forced to work with lower salary. Government is helpless, because government is controlled by the CB also. Government is not allowed by CB to create jobs. Thus wealth can be created with lower cost and therefore increasing profit. Note that the people at the bottom fifth really produces the wealth. In this sense the bottom fifth should be paid the highest salary in the hierarchy of the economic food chain.

The recessions are not natural laws of capitalism. Larry Bates, a banker and economists says (Bates, 2003) these recessions are precisely controlled, monitored, and can be predicted. We have explained that theory in various ways in this chapter [Das, 2011-2]. The company (ECRI, 2004) has mastered the prediction method of business cycles. Many world governments consult ECRI to create their indices for predications of their own recessions. ECRI can predict with an accuracy of two weeks.

Printing money is a very secret way to transfer wealth. US President (1801-1809) Thomas Jefferson wrote (Ritholtz, 2009, p. 15):

“.. if the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

We can see from our graphs that this is happening exactly, recession after recession, in the United States, even after so many years of the above prediction. Note that the above statement is very similar to what Keynes said on inflation, as pointed out in this chapter.

We should understand that, inflation by printing money, as it is, cannot be bad. It becomes bad only when the excess money is allocated to a smaller group instead of the entire population thus forcing the transfer of wealth to happen. When the money goes to the entire population, inflation happens but the purchasing power does not reduce, because it does not violate the LOC.

5. Hiding Inflation

It is said that the Fed has the dual policy to control both inflation and unemployment in an optimal way that is good for the economy. In reality that is not the case, as we have shown with the data. Its only objective is to transfer wealth to a very small number of people. To achieve this objective it makes people unemployed, creates inflation, and makes businesses, including banks, to fail.

Inflation is a process of increasing money supply (Hubbard, 2002, p. 744), violating the LOC. This process helps to transfer wealth, by increasing the share of the pot of gold. Keynes (Keynes, 1920, p. 235-236), a father of economic theories, says –

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. … The process engages all the hidden forces of economic law on the side of destruction and it does it in a manner which not one man in a million is able to diagnose”.

We should recognize that profiting and interests charging are also inflation in disguise. Thus the key technology of the economy of the CB is the creation of inflation. Inflation will transfer the wealth and create the poverty by LOC. Observe that Keynes’s statement is very similar to what President Jefferson said nearly 200 years back.

The statement says – only one in a million – can know the real truth behind the role of CB. This is why we have been saying 99% of the population does not know the truth. Government is an agent of CB. Government is helpless; its members are controlled by the lobbyist. In some countries such activities are called corruptions. Lobbyist is a complex term created to hide the truth.

How much money the Fed is printing is never known and will never be known. It is the only body that can print money and allocate to anyone it wishes. Thus we have a very high hidden inflation. If you do not know the amount of money present in the economy then you cannot compute the real inflation. All the inflation data presented by the government are therefore fictitious. All our theories on economics, like Phillips curve, supply-demand, etc., are wrong too.

6. Democracy Under CB

We have discussed this subject in the Moneyless Economy (MLE) chapter. Most of the thoughts expressed there is equally applicable for this section also.

Freedom for Governments

Democracy is only a word with no meaning and is heavily misused in the world today. People do not have any power. Just casting secret ballot is not power. Politicians we elect for capitols do not have secret ballots, and therefore people who elect them loses their secrecy. This is how at a very crucial point in the system the CB has paralyzed the people. CB wants this public ballot at capitols so that its money power can control the politicians and influence their decisions. This is known as the carrot and stick policy.

Note that in USA the government is very transparent. All activities of all representatives are carefully recorded in many electronic forms using audio, video, websites, emails etc. Thus if anyone wants to know what their representatives are doing, the data is always there for analysis. But still people will not and cannot change this public and open ballot system in the capitol.

Most people in USA do not even know that their representatives cannot use secret ballot. Even if they know, they do not see its consequences. Information hiding is a key feature used by money power of CB. Under capitalism government is also privately owned and controlled by CB.

At one point Greece Prime Minister Papandreou wanted to put the bailout plan for nationwide public referendum [Schaefer]. He was not successful in that effort and within few days he was removed from his office. This is a clear indication that real democracy is not acceptable for the CB.

Freedom for Economic System

The present economic system, as we have shown by theory and by data in this chapter, methodically takes wealth away from 99% of the population and gives it to 1% of the population. Such a system cannot be called a democratic economic system, because the economy is exploiting its own people. We have shown using graphs that over the years poor is becoming poorer and rich is becoming richer. This represents a systematic method for transfer of wealth.



7. IMF Policies

Like central bank, on paper the international monetary fund (IMF) says [Chap1] its objectives are: (Pi) promotion and maintenance of high level of employment, and (Pii) real income, (Piii) avoidance of destructive national and international prosperity, and (Piv) reduction of burden of economic disruption.

However, from the publicly available data and research publications on the results of the actions of IMF, we find their real objectives are: (R1) transfer of wealth to top 5% of the economic class, (R2) spreading large scale poverty to the bottom fifth of population, (R3) acquire global control of economy, and (R4) control of all governments, military, the intelligence, and the police force of every nation.

The professor [Sutton] says, “In brief, the public good has been, and is today, used as a device and an excuse for selfaggrandizement by an elitist circle that pleads for world peace and human decency.”  What is written and what is done are two different things.

In this section we show, from the public data and research reports that we have on IMF and CB, that these real objectives (R1-R4) are indeed real. Since IMF is funded by the CB, the IMF must execute the policies of CB. Also since it is the same money that is controlling all activities of the world, we can see the above same real objectives of CB in any activity.

Implementing Austerity

One of the structural changes that IMF imposes on the fund receiving country is to implement an austerity program. This program focuses on government budget cuts, termination of government employees and services, cuts to defense spending, reduction in pensions, and lowering minimum wages [Kelley]. This is of course geared to the same goal that CB also imposes. We have seen that recently, in the imposition of austerity on Greece by the CB.

The main objective of CB is again, to setup the environment for transfer of wealth with lower priced labor force. Cutting government programs and services are required by IMF. Note that services are part of GDP. On the one hand IMF goal is to recover from GDP loss but it eliminates many services. These government cuts increase unemployment. This forces eventual reduction in salary for future employment. It then makes wealth production cheaper and transfer of wealth more beneficial, one of the prime goals of CB.

As mentioned before, we can see what IMF writes and what it does are two different things. It is designed to help the countries to make economic progress but we see that it puts people in misery, and transfers wealth to elite class. So the IMF actions definitely confirm the real objectives (R1-R4) that we have highlighted. We show examples in later sections.

During bad economic times, crises should be shared equally by rich and poor people. If salary needs to be reduced then it should be reduced for the CEOs first and then for lower salary community. Under this kind of deal no one will object to austerity. At this time austerity is seen as the hostility of rich over poor and an attempt to grab the properties of poor. The violence in Greece is a testimony of the suffering due to austerity programs [Stratfor].

The main objective of IMF should be to pour money in any country that needs it. The country will automatically solve its problems. If private corporations cannot produce jobs let the government do it. Also, since money is free, it should be tied to GDP. That is, 1% growth of GDP must be accompanied by 1% increase in money supply. This way inflation will remain low.

Destruction of Infrastructure

Another feature that IMF enforces immediately, as precondition of loan to a country, is to reduce domestic spending by increasing interest rate. This action cripples the local small and large businesses. Very quickly the manufacturing infrastructure gets destroyed. This enables the foreign donors to extract the raw materials like oil and other resources at lower prices from the nations. Eventually countries are destroyed. This was done in Russia and South Korea after the IMF funding, as shown later with numeric data from publications [Kotz] [Kim].

Clearly this is inconsistent with the stated objectives of both CB and IMF. However it is consistent with the real objectives. These are designed to transfer wealth to local elites. Within a short period many Russians became billionaires by robbing the country, naturally, by the law of conservation.

Destruction of Government 

In this subsection we point out from public data and public research that CB and IMF do the following things: They confiscate government and people’s assets by enforcing privatization. They destroy democracy and maintain ignorance in the society on economic affairs. It is very important that CB remains in control by ensuring that no government of any nation becomes powerful. This is systematically implemented by eliminating employment offered by government; all jobs must be offered by private sector. Private sector employment is then controlled by CB by controlling the money supply and interest rates. This way, people remain poor and weak. They can be used against government to overthrow it and thus perpetuate the poverty.

Privatization destroys government services in health care, education and libraries, maintenance of roads and bridges, care for elderly, unemployed, and single parents. CB eliminates all these services showing its very brutal face to society. Privatization of jails increased crimes, and the number of people in jails [Glaze]. In USA prison population has soared from 1.8 million in 1980 to above 7 million in 2010, indicating deterioration of economic conditions of bottom fifth as shown also by graphs. Note that in USA prisons are privately owned, so US has the maximum number of prison inmates in the world. Privatization brought misery to millions in bottom fifth of the economy, who were only protected by government and its services.

The IMF working paper [Bernal-Verdugo] basically proposes one sided dictatorship by businesses, that is, it wants to eliminate all constraints. On one hand the CB and IMF are centralizing economic forces; and on the other hand the same paper shows that they are decentralizing political forces of government, a contradiction.

7E: Implementing Poverty

8. Implementing Poverty

In this section we take some countries that elected to borrow money from IMF at times of their financial recessions. And then we show from publicly available data and research results how the countries, their governments, values and morals of the population were systematically destroyed by the IMF. Remember that the financial recessions are not laws of nature; they are manmade, designed, and created explicitly by the CB, as we have discussed before in this chapter.

South Korea

The economic crisis of South Korea that began in mid 1997 is very similar to the 2008 crisis in USA. The situation as described in [Kim] is exactly how CB manipulates the economy to create recessions. Irony is that no one sees the hand of CB but blames other financial institutions and government. But from literature discussed before, we know that CB commands all institutions, including governments, by controlling the supply of money.

The IMF funding was requested in December in 1997. The result was very consistent with performance of all other IMF funded countries: Industrial output going down, consumer price increasing, GDP contracting, and unemployment rising [Kim]. The same report also presents the standard deteriorating social conditions: Korean workers were in a desperate situation; triggering an explosion in the number of people in homeless and the desperate conditions; suicides have risen sharply.

We can see that IMF cannot always work. But it definitely performs its real objectives (R1-R4); destroys the democracy, government, salaries of the lower median. It serves the purpose of the CB, transferring wealth to top fifth. Thus the IMF triggered a social problem. This is very common in all developed nations in the west, for CB followed the same policy.

The paper [Yoon] paints a picture similar to what we saw in 2008 bailout in USA: The IMF bailout socialized private debts and coerced Korean taxpayers to pay the international lenders billions of US dollars for the mistakes of chaebols, banks, and international lenders themselves, inflicting pains on innocent people. The IMF bailout is not medicine, not even an ineffective placebo, but socialist poison. The Cato report [Vasquez] on Korea essentially says the same thing about IMF helping banks instead of people.

In USA the bailout money for housing crisis was not given to homeowners, but to the banks. If the government had given the money to the people USA could have created a better recovery. The banks did not take care of home owners. Money injected at the bottom end of the food chain would have percolated through to the top solving the financial crises.


Given complete freedom, what CB will do to a country has been uniquely demonstrated in Russia after the communism collapsed in 1991 [Kotz]. IMF took a bold step in financing Russia, and controlling the economy using the principles of so called free market capitalism with structural changes in government. “In a few years what had been a diversified industrial economy has been transformed into a raw materials exporting appendage of western capitalism.”

As of the end of 1997, according to official statistics Russia’s gross domestic product had fallen by half since 1991 and its investment in new plant and equipment by three-fourths. Russia became dependent on west. Consumer goods came from west and imported 40% of its food. Buying power of people fell to half; the wages were not paid in time [Kotz].

Poverty caused large scale damage of society by 1998 report. Since 1991 more than two million premature deaths have resulted from increases in alcoholism, suicide and murder, infectious diseases, and stress-related ailments. One study estimated that 2 million children had no family caring for them, of whom only 650,000 were in orphanages. The rest lived in abandoned houses or in the sewer system of large cities [Kotz].

Russia was a heaven for the CB. That is, what CB wanted and got it too. Russia became a supplier of oil to west and importer of consumer goods. No welfare for people, IMF created a good strong oligarch community supporting Yeltsin government at the cost of a collapsing economy.

From all the above examples [Das, 2013-2] we can conclude, IMF implements the same policy that CB has. And it is quite natural, because IMF is funded by the CB. For that matter everybody is implementing the policies of the CB, because everybody is funded by the same money, which originates from the CB and therefore carries the DNA of the CB.

As we can see that the major policy of the CB is: transfer of wealth. Make very few people rich and everybody else poor. This is a dictatorship in practice, whereas in speech and in disguise we hear free market, freedom, economic growth, and democracy. All these example cases establish the validity of real objectives (R1-R4) mentioned before.


There is another aspect of CB that keeps countries poor. Clearly a poor country is poor because there is no money. The CB is refusing to give money to the government to increase the GDP value. Since money is free and yet CB is not giving, means that CB is maintaining the poverty.

Given money, any country can become rich; we have seen that happening to China and India. Same thing happened to USA also. By reducing the supply of money a prosperous country can be brought down to poverty and suffering. Consider the case of Greece in recent years. Greece’s population is about 11 million and population of Athens is more than 4 million.

[FSIFX] says – in the early 2000 Greece was one of the leading countries in the Euro zone. Financial crisis was created, Greece was forced to face debt crisis, and by 2010 it required a bailout plan and IMF imposed a massive structural change in the government expenditure. [Stratfor] says after three years of difficult reforms, Greece is entering its fifth year of recession, with approximately 25% unemployment. People have begun to migrate. In 2010 only 42 people left for Australia, the number soared to 12,000 applications in 2011. About 38,000 people left cities and moved to country side. Social crimes, political extremism have increased. [Ruparel] says in 2011 Greece economy contracted at an annualized rate of 7%. The above data proves how quickly, IMF and hence the CB, can bring down any rich country to its knees.

The reverse is possible also. The poverty of poor nations is all too familiar; we always watch that in worldwide television screens. Since economy is controlled by CB and not by government, there is no one to blame but the CB. The world population must try to find this deep secret, and only then things will or can change. You pour money to any country, the country will become rich. Since money is free, the CB should not have any reasons to eliminate poverty. The progress that is happening to China and India can happen to Africa also and within 10 years.

9. Conclusions

In previous chapters we have seen that all of mathematics and physics are wrong. In this chapter we have examined economics and found that it is also false. Something is fundamentally wrong everywhere.

As we have mentioned before that the truth can come only from nature. Mathematics and physics use real numbers and economics use money which is also real numbers. Real numbers are not objects of nature and therefore are false. Something false cannot be used to make something true.

Money power exploits people using free money, secret transactions, and unauthorized interest rates. People lost their democracy. Bottom fifth is suffering miserably. Every now and then CB creates recessions and purges property from them and gives to rich people.

The ideas presented are not new. They are quite well established, although to only about 1% of the population, and outside the mainstream. This entire book is on the idea that the truth is very secret, very difficult to find, and when you find them, it reveals the falsity of the entire civilization and its foundations. This is the way the destiny has planned for all of us in this era.