The Federal Reserve System: Nearly a Century of Injustice

The Federal Reserve System:

Nearly a Century of Injustice

The power of belief is one of the most awesome determinants of human behavior there is, because if you control what people believe, you control them. This is exactly what our most powerful social institutions do. From religious to educational organizations, international and multi-media corporations, governmental and militaristic institutions, people are controlled by what these “experts” say. Each of these institutions started with the highest altruistic motivation to serve the common good. But it’s common knowledge that power corrupts and absolute power corrupts absolutely. Hence, the injustice occurs when the motivation of any social institution shifts from the honest and altruistic intention of serving the common good to the corrupt intention of serving the power and authority of the institution. In our modern society, the Federal Reserve System is the most corrupt example of injustice there is, but there are some potential solutions.

To understand the corruption, we need some historical background on how the Federal Reserve System came into being. Officially, the FED came into being on December 23, 1913 when President Woodrow Wilson, pressured by political and financial backers, signed the Federal Reserve Act into law (Petition). About six years after signing this law, Wilson is quoted as saying:

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the voice of the majority, but a government by the opinion and duress of a small group of dominant men. (Joseph)

The corrupt political and financial backers who pressured Wilson into signing the Federal Reserve Act are the small group of dominant men. The Federal Reserve System is a central bank which creates money from nothing. Then, having created this money out of thin air, The FED “sells” this paper money to the U.S. Government at face value plus interest. This practice has created a vast national system of credit (which Woodrow Wilson alluded to) as well as the burden of phenomenal national debt. The very name “Federal Reserve System” is designed to deceive. It isn’t “federal” and not part of the government at all. The FED is a privately owned franchise and therefore expected to make a profit for its owners (Griffin 23). There is no “reserve” because Federal Reserve Notes aren’t backed by anything of value (U.S. Treasury). The word “system” is designed to hide the fact that the FED is nothing more than a central bank (Joseph). Clearly, President Wilson regretted this act. And because of this act, our corrupted government has been lying to us ever since. To understand why, we need to understand money and why Federal Reserve Notes aren’t real money as defined by the Constitution.

First, we must consider who actually has the legal authority to create money and what the legal definition of money truly is. The Constitution of the United States of America is the defining source of authority for our government. Article I Section 8 defines the power of Congress-the legislative branch of our government. Among other things it states that [only] Congress “shall have the power…to coin money and regulate the value there of…and to provide for the punishment of counterfeiting the securities and current coin of the United States…” It goes on to say in Article I Section 10 that “no state shall…coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts.” The Founding Fathers were quite specific in this because they had firsthand experience in the way currency can be misused. In the early days of Colonial America, the Founding Fathers created a Central Bank which failed miserably. They learned by this firsthand experience that money must be backed by something of value. They also learned that the creation of a central bank which issues currency not backed by anything of value will inevitably become corrupt because it hold too much power and will cause rampant inflation, unmanageable debt, high taxes, widespread unemployment, and severe economic depression. “Governments and politicians do not rule central banks; central banks rule governments and politicians” (Townsend). People who do not learn from history are doomed to repeat it. By the specific wording in the Constitution about coining money, the Founding Fathers attempted to take steps to insure that a corrupt central bank which creates money from nothing could never happen again. Unfortunately, for modern citizens living in the United States of American today, it has happened again. We must learn from history.

Looking at a one dollar bill (which represents the lowest denomination of a Federal Reserve Note) one sees clearly the statement that “this note is legal tender for all debts public and private.” According to the U.S. Treasury website’s frequently asked questions “the Coinage Act of 1965, specifically section 31 U.S.G. 5103, entitled “Legal Tender,” which states: “United States coins and currency (including Federal Reserve Notes and circulating notes of Federal Reserve Banks) are legal tender for all debts, public charges, taxes, and dues.” Here is the crux of the lie which has been forced upon the American People, and by extension of global trade and commerce, the people of this entire world. Legal tender is another name for “fiat money.” According to the book “The Creature from Jekyll Island” by G. Edward Griffin;

The American Heritage Dictionary defines fiat money as paper money decreed legal tender, not backed by gold or silver. The two characteristics of fiat money are 1) it does not represent anything of intrinsic value and 2) it is decreed legal tender. Legal tender simply means there is a law requiring everyone to accept the currency in commerce. The two always go together because, since the money really is worthless, it would soon be rejected by the public in favor of a more reliable medium of exchange, such as gold or silver coin. Thus, when governments issue fiat money, they always declare it to be legal tender under pain of fine or imprisonment. The only way a government can exchange its worthless paper money for tangible goods and services is to give its citizens no choice. (Griffin 155)

As defined by the Constitution, legal tender fiat money is counterfeit by its very nature. This is exactly the kind of situation the Founding Fathers wished to avoid by giving Congress (and only Congress) the power and authority to coin money backed by gold and silver. And yet, the U.S. Treasury admits that “Federal Reserve Notes are not redeemable in gold, silver, or any other commodity, and receive no backing by anything” (U.S. Treasury). The U.S. Treasury goes on to state that “the notes have no value themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve Notes are “backed” by all the goods and services in the economy” (U.S. Treasury). This manner of fallacious circular logic is the crux of the gross injustice perpetrated upon the American People whose hard work and ingenuity creates all the goods and services in the economy.

Monopolies are supposed to be illegal. Because the FED is privately owned (and not part of the Government) it is subject to the laws which prohibit monopolies and the perpetrators should be punished in accordance with the law. Few people realize this, however, because we’ve all been programmed from an early age to believe the blatant falsehood that FRN’s are real money. Sadly, people currently have no choice but to submit to the monopoly of the FED by using worthless legal tender called Federal Reserve Notes instead of the real currency as defined in the Constitution. Hence, corrupt institutions use deception to promote injustice in order to consolidate the power and authority over the people they claim to serve. There have been many historical events of injustice which have been contrived to reinforce this belief.

One major historical event known as the Great Depression of the 1930’s was contrived for the purpose of consolidating the corrupt power and authority of the central bank monopoly called the FED. A huge problem which greatly affected the lives of millions of people was intentionally created in accordance with a specific plan. The name of this plan is called “bailout.” Congress was convinced by the private owners of the FED (who aren’t part of the government) to have the federal government guarantee payment of all the defaulted loans resulting from the stock market crash of 1929 that created the Great Depression. Congress was also told that if they did not agree to have the government (and by extension the taxpayer) guarantee payment of defaulted loans, great damage to the economy and hardship for the people would be the result. Therefore people are unjustly made to pay for the same thing twice. First, people pay interest on loans of money created from nothing resulting in profit for the bankers which we call the national debt, and then the taxpayer is made responsible to bear the cost of bailing out the banker’s losses through a hidden tax called inflation. While legal tender is money created from nothing, from the perspective of the FED, the debt is real. And the more FRN’s are created, the more worthless they become. Inflation is a direct result of borrowing money created from nothing. The private owners of the FED created the Great Depression for this purpose (Griffin, Townsend, Joseph). Again, we see the injustice in which the corrupt Federal Reserve System uses deception to exploit those it claims to serve because bankers don’t create wealth, they leech it from others. This gross injustice will continue as long as we allow it.

A more current example that this plan is still in effect is where Congress recently voted to bailout various investment banking firms in the amount of $700 billion. Again, people who don’t learn from history are doomed to repeat it. The Federal Reserve System was supposedly created to stabilize our economy (Griffin 20). However, given these two examples, there can be no doubt the FED has failed in its stated objective. Just like before, Congress has been convinced that unless they vote to bailout these various investment banking institutions using even more money created from nothing borrowed from the FED great damage to the economy and hardship for the people will be the result. Once again, this gives increased profit to the private owners in the form of interest on still greater national debt backed by the taxpayer,

In truth, it is the legal tender fiat money which is causing great damage to the national and global economy and untold hardship for people not just in the United States but all over the world. “A world banking system was being set up here…a super state controlled by international bankers…acting together to enslave the world for their own pleasure. The FED has usurped the Government” (Joseph: Louis McFadden). Not only has legal tender fiat money made indentured servants of us all, but we willingly pay the cost of our own economic slavery through interest and inflation. This is injustice on a global scale. We need a fair, just, and equitable solution.

Lastly, there are some potential solutions for this injustice. One potential solution to this gross injustice is to abolish the Federal Reserve Act of 1913. There is currently a petition which calls for this action. To U.S. Congress:

This petition calls for the abolishment, by Congress, of the Federal Reserve Act of 1913 to return all the rights and profits from the creation of money to the rightful heirs the citizens and the U.S. Government. It is outrageous that private banks and the FED can create money and collect interest on it. If we must pay interest on monies created and loaned, let it be the United States of America that receives it, not some private interest. We have lost our freedom to the private banks that create money out of thin air and enslave the common man to a life of debt. If we are to be indebted, let it be to our country and not the bankers. (Towsend)

Perhaps an analogy might help to clarify this rather complex situation: sheep grow wool which a shepherd periodically shears. Then, having sheared the sheep of their wool, the shepherd sells this wool for a profit. No we aren’t sheep. We are human beings. But we do, in fact, allow the shepherds of the world to shear us of our wool in every way imaginable deriving great profit. We even pay them twice to do it!

We “own” our “wool.” We have the right to derive most of the profit from its sale. And there is no need to pay the shepherds of the world for the privilege of shearing our wool. In the same way, we “own” the hard work and ingenuity which creates all the goods and services in our economy (not the corporation we work for). Also, we “own” our government. It does not “own” us. Neither does the FED “own” us or our government. The time has come to abolish the Federal Reserve System. This is the first step in correcting the gross injustice which has been forced upon us. The second step is something called the National Economic Stabilization and Recovery Act (NESARA):

NESARA—A Proposed Bill

We must replace current monetary and fiscal policy with systems that benefit all, not just a favored few.

That people urgently need a plan, a simple strategy to attack a multitude of troubles, perhaps the one offered at this web site. We introduce to you The National Economic Stabilization and Recovery Act (NESARA).

The sponsors of this web site offer a new perspective about money and specific proposals for replacing the nation’s outdated monetary and tax policies, all designed to benefit you.

This plan calls for general prosperity without sacrifice, not some complex redistribution scheme contrived as patronage for Washington power brokers and special interests. Best of all, the solution is written in plain language, not legalese (NESARA Institute).

By abolishing the FED and enacting NESARA, we take two big steps in correcting nearly a century of corruption, deception, and gross injustice which has been forced upon the American People and return the Constitution to the legal source of power and authority in our Government.

Works Cited

Cornell University Law School. United States Constitution. Article I Section 8. Section 10. Sept

08, 2008. < http://www.law.cornell.edu/constitution/constitution.articlei.html >

Griffin, G. Edward. “The Creature from Jekyll Island.” American Opinion Publishing.

Appleton, WI. 608 pages. 1994.

Joseph, Peter. GMP-LLC. Zeitgeist-The Movie. 2008.

< http://www.zeitgeistmovie.com/main.htm >

NESARA Institute. The National Economic Stabilization and Recovery Act. NESARA-A

Proposed Bill. Oct 10, 2008. < http://nesara.org/bill/index.htm >

Townsend, Russell. Petition to Abolish the Federal Reserve Act of 1913. Sept 08, 2008.

< http://www.petitiononline.com/fedres/petition.html >

U.S. Treasury. Frequently Asked Questions. Legal Tender Status of Currency. Sept 03, 2008.

< http://www.ustreas.gov/education/faq/currency/legal-tender.shtml >