Understanding the Money System
Youth Edition (Ages 12-17)This workbook uses the 6 Rs Learning Method to help you really understand and remember what you learn:
"The rich ruleth over the poor, and the borrower is servant to the lender." - Proverbs 22:7
Most people think the "Federal Reserve" is part of the government. After all, it has "Federal" in its name! But here's the truth: the Federal Reserve is a private bank - not a government agency at all.
Fill in the Blanks:
1. The Federal Reserve was created in .
2. The Fed is owned by banks, not the government.
3. The Fed has never been fully .
True or False:
Think About It: Why do you think the Fed is called "Federal" if it's not part of the government?
Without looking, write: When was the Fed created? Who owns it? Has it been audited?
Explain to a family member that the Federal Reserve is NOT a government agency.
Who did you teach? Date:
"The rich ruleth over the poor, and the borrower is servant to the lender."
Here's something wild: money doesn't really "exist" until someone borrows it! Banks don't lend out money they actually have - they create new money when they make loans. This is called Fractional Reserve Banking.
When you deposit $100 in a bank:
Fill in the Blanks:
1. Banks keep about % of deposits as reserves.
2. About % of all money is created as debt.
3. This system is called Reserve Banking.
True or False:
Explain in your own words how banks "create" money from nothing:
Explain fractional reserve banking to someone using the $100 example.
Who did you teach? Date:
"A false balance is abomination to Yahuah: but a just weight is his delight."
The U.S. National Debt is currently over $38 TRILLION (that's $38,000,000,000,000!). That works out to about $113,000 for every single person in America - including you!
Here's the trick: When the government needs money, the Federal Reserve "prints" it (creates it from nothing) and lends it to the government. The government has to pay back the money plus interest.
The Problem: The money to pay the interest was never created! If all the money that exists came from loans, and we have to pay back more than was created, it's mathematically impossible to ever get out of debt!
| Year | National Debt | Debt Per Person |
|---|---|---|
| 1913 | $2.9 billion | $29 |
| 1980 | $907 billion | $4,000 |
| 2000 | $5.6 trillion | $20,000 |
| 2025 | $38 trillion | $113,000 |
Fill in the Blanks:
1. The current national debt is about $ trillion.
2. In 1913, the debt per person was only $ .
3. The debt can never be paid off because the was never created.
True or False:
Why is the national debt mathematically impossible to pay off?
Explain the "debt trap" to a family member.
Who did you teach? Date:
"Owe no man any thing, but to love one another."
Have you noticed that things cost more than they used to? That's called inflation. But inflation isn't natural - it happens because the Fed keeps printing more money. When more money exists, each dollar is worth less.
| Year | What $1 Could Buy |
|---|---|
| 1913 | 30 chocolate bars |
| 1950 | 4 chocolate bars |
| 2000 | About 1.5 chocolate bars |
| 2025 | Less than 1 chocolate bar |
Since 1913, the dollar has lost about 96-97% of its value!
Fill in the Blanks:
1. Since 1913, the dollar has lost about % of its value.
2. Inflation happens when too much is created.
3. Inflation acts like a hidden on your savings.
True or False:
How much value has the dollar lost since 1913? What causes inflation?
Explain how inflation steals the value of money using the chocolate bar example.
Who did you teach? Date:
"But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have."
The Federal Reserve didn't just happen - it was planned in secret by some of the richest and most powerful bankers in America.
In November 1910, six powerful men met secretly at Jekyll Island, Georgia. They used fake names and traveled in private train cars so nobody would know who they were or what they were planning.
Fill in the Blanks:
1. The secret meeting happened at Island in 1910.
2. The bankers used names to hide who they were.
3. President later said he regretted signing the Act.
True or False:
Describe the Jekyll Island meeting. Who was there? Why was it secret?
Tell someone about the Jekyll Island conspiracy and President Wilson's quote.
Who did you teach? Date:
"And have no fellowship with the unfruitful works of darkness, but rather reprove them."
In 2008, big banks made terrible decisions and nearly crashed the entire economy. What happened? Did they face the consequences? No - the government took YOUR money and gave it to them!
Banks gambled with risky investments and lost BIG. Instead of letting them fail (like any normal business would), the government gave them billions of dollars in "bailouts."
| Bank/Company | Bailout Amount |
|---|---|
| Citigroup | $45 Billion |
| Bank of America | $45 Billion |
| AIG (Insurance) | $68 Billion |
| General Motors | $50 Billion |
No. The same banks are still doing risky things. The executives who caused the crisis still got their million-dollar bonuses. Meanwhile, millions of regular Americans lost their homes.
Fill in the Blanks:
1. The bailouts happened in .
2. This was called "Too to Fail."
3. The bailout money came from .
True or False:
What is "Too Big to Fail"? Why is it unfair?
Explain the 2008 bailout and why it was unfair to regular people.
Who did you teach? Date:
"He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor."
The Bible has a LOT to say about money, debt, and interest. The modern banking system breaks almost every principle!
The Hebrew word is "neshek" (נֶשֶׁךְ), which means "to bite." Charging interest "bites" away at people's resources. For 1,500 years, Christians believed charging ANY interest was sinful!
Fill in the Blanks:
1. The Hebrew word for "usury" means "to ."
2. Proverbs 22:7 says the borrower is to the lender.
3. Deuteronomy 25:15 commands using honest and measures.
True or False:
What does "neshek" mean? What does Proverbs 22:7 say about debt?
Explain what the Bible teaches about debt and interest.
Who did you teach? Date:
"If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury."
The banking system is huge and powerful. But that doesn't mean you're helpless! Here are practical steps you can take.
Fill in the Blanks:
1. The first step to financial freedom is staying out of .
2. Real money like and silver keeps its value over time.
3. Revelation 18:4 tells us to "come out of ."
What Will You Do?
Which action step will you focus on first? Why?
List 4 things you can do to protect yourself from the corrupt money system:
Share what you've learned in this workbook with your family or friends.
Who did you teach? Date:
Their reaction:
"Come out of her, my people, lest you share in her sins, and lest you receive of her plagues."
Based on this workbook, I commit to:
My main commitment:
Review each lesson at these intervals for long-term memory:
| Lesson | Finished | Day 1 | Day 3 | Day 7 | Day 21 | Day 60 |
|---|---|---|---|---|---|---|
| 1. What is the Fed? | ||||||
| 2. Money From Nothing | ||||||
| 3. The Debt Trap | ||||||
| 4. Inflation | ||||||
| 5. Jekyll Island | ||||||
| 6. The 2008 Bailout | ||||||
| 7. Bible & Money | ||||||
| 8. What Can You Do? |
"Precept upon precept, line upon line" - Isaiah 28:10
1. 1913 2. private 3. audited
T/F: False, True
1. 10 2. 90 3. Fractional
T/F: False, True
1. 38 2. 29 3. interest
T/F: False, True
1. 96-97 2. money 3. tax
T/F: False, False
1. Jekyll 2. fake/false 3. Wilson
T/F: False, True
1. 2008 2. Big 3. taxpayers
T/F: False, True
1. bite 2. servant/slave 3. weights
T/F: False, True
1. debt 2. gold 3. Babylon
Personal answers will vary.