In essence, the United States central banking system is a Ponzi scheme. This may seem like a bold claim to many, but it doesn’t take the eye of an economist to recognize the destructive nature of this system. As of 2014, the wealthiest 1% of the population has 40% of the nation’s wealth, while the bottom 80% only has 7%. Unfortunately, the issues that plague the American economy root far deeper than wealth inequality. Many believe the US dollar is created by the government. This is not true. The US dollar is created either as a product of the fractional reserve banking system, or by the Federal Reserve (FED). The FED is the central bank of the United States. Not only does the FED control interest rates, it also has the vital economic power of regulating the US dollar through its creation; whether it be by printing or digital entry. Contrary to its name however, the FED is not a government agency. The Federal Reserve is a corporation, owned by the largest American banks. These banks include, but are not limited to; J.P. Morgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley. The FED is run by bankers, for bankers. Whether it be through quantitative easing, bank bailouts, or simply the design of the system, the Federal Reserve is not only responsible for the economic hardships endured by modern America, but also responsible for the destruction of a free American democracy of which it was founded upon.