THE FEDERAL RESERVE

What Is Money And Whose Money Is It?

Divers weights are an abomination to the Lord,

And dishonest scales are not good. (Proverbs 20:23)

When I began this project I had no idea that it would eventually take on a life of its own. What was supposed to have been a simple accumulation of information and facts has instead become an unending study of the world's greatest "whodunit."

It would be impossible to dissertate this complicated subject in one red ribbon wrapped package, primarily because very few have knowledge of or understand the inner workings of the Federal Reserve system. It is not by happenstance that obtaining information from our loyal and dedicated public servants is next to impossible. Ask your senator or congressman, one of the principal beneficiaries of the system, and they haven't a clue. All they know is that our monetary system as presently practiced permits them the ability to engage in a freewheeling spending spree, that they fallaciously believe can be sustained in perpetuity.

What follows will be an interminable examination of how the bankers and politicians, past and present, have usurped our solid constitutional system of "real money" and turned it into our present-day worthless "fiat paper" currency that only has value because of the brute force of government demanding that it be accepted as legal tender. (All lawful money is legal tender but, as we shall discover, not all legal tender is lawful money.)

As we begin our study one fundamental must be understood from the onset, and that is that the Federal Reserve is not federal, nor does it have any reserves. Not one person in a thousand has any inkling that the Federal Reserve is a "private for profit" corporation wholly owned by the member banks. In pulling off this greatest of all pretenses it was necessary that the perception be to the benighted masses that the Federal Reserve was indeed, federal: Hence the name. To further delude the general population appointments to the respective Federal Reserve boards were structured so that these positions are filled by presidential appointment and confirmed by the Senate, further suggesting a government agency.

The best description of the Federal Reserve is to be found in the title of an excellent book written by G. Edward Griffin - "THE CREATURE FROM JEKYLL ISLAND." As we shall see, indeed, it is a Creature.

If someone blatantly uses the work of another and calls it his own, when caught, that person is guilty of plagiarism, not to mention intellectual theft. However, someone that uses the work of many is credited as being an esteemed researcher. Several sources have been indispensable in this effort and the above referenced volume by Mr. Griffin, with its extensive footnotes, has been a storehouse of information that our pompous politicians on the Potomac and the baron bankers would prefer not be made available to the unsuspecting "fiat money" carrying public.

The most unquestionable and authoritative source of what our monetary system was intended to be is from the distant voices of the delegates themselves at the Constitutional Convention, as recorded by James Madison in his "Notes of Debates in the Federal Convention of 1787." Mr. Madison's work should be a mandated text in every classroom in the country. Unfortunately, the present-day education community prefers history revisionism to truth, and those voices of truth have long since been nullified by a plethora of leftist dribble and twaddle.

Consequently, thanks to the duping of the public by politicians, bankers and educators, the concerns expressed by John Adams in a letter to Thomas Jefferson haunt us today. He wrote: "All the perplexities, confusion and distresses in America arise not from defects in the Constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit and circulation."

By continuing to dumb-down America and keeping us serfs ignorant and in debt up to our eyeballs, the greatest of all hoaxes (The Federal Reserve) persists.

Thomas Jefferson was on target when he said that, "If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

WHAT IS MONEY?

Title 12, Section 152, of the United States Code tells us that : Lawful money shall be construed to mean gold and silver coin of the United States.

What then, is that stuff we carry around in our pockets today? From the definition above we know that it is not lawful money.

In 1787 on a hot summer day in August in Philadelphia, the debate inside the Constitutional Convention was just as hot. It was the friends of paper (fiat) money vs the proponents of sound money with honest weights and measures. Having just gone through the Revolutionary War, and with the bitter taste of financing that war with paper Continental dollars still lingering, the latter thought that this was "a favorable moment to shut and bar the door against paper money."

The debate centered around three little words - "and emit bills." The authority to borrow money and emit bills on the credit of the United States was lifted verbatim from the forerunner to the Constitution, the Articles of Confederation. One delegate reminded his colleagues that "the mischiefs of the various experiments which had been made, were now fresh in the public mind and had excited the disgust of all the respectable part of America." Another cautioned that "if the consent of the Legislature could authorize emissions of it, the friends of paper money would make every exertion to get into the Legislature in order to license it."

Several amendments were offered, going so far as to insert after the words "coin money" the words "nor emit bills of credit, nor make any thing but gold and silver coin a tender in payments of debts." In the end it was decided that it was only necessary to specifically prohibit the respective States from the above acts. It was reasoned that by striking the three offending words, "and emit bills," the only powers being then delegated to Congress would be "to borrow money on the credit of the United States," and "to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures."

With respect to the coining of money then, the design in the construction of the Constitution was intended to provide for uniformity in the alloy used (gold and silver), and the value thereof, by empowering the Congress (general government over the States) to "fix the standard of weights and measures." As we are told in The Federalist #44, "Had every State a right to regulate the value of its coin, there might be as many different currencies as States."

The boys in the Philadelphia meeting hall thought they had put a system of "real money" in place and made the prohibition against emitting bills of credit absolute. James Madison was so elated with the prospect of locking in real money and locking out fiat paper that in the The Federalist #44 he excitedly tells us that "the extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity."

What James and the boys in the meeting hall didn't know was that the boys at the bank would, with the aid of Constitution bending politicians and judges, eventually gain control over our monetary system and, concurrently, absolute control over the financial and economic well being of every man, woman and child in the country.

While Madison may have believed that sufficient safeguards had been put into place, he knew that it would be an ongoing battle. After having ascended to the Presidency he cautioned the nation by advising that history records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.

Madison was right. In 1913 the politicians adopted the Creature that the bankers had spawned on Jekyll Island. From that point forward it has been the demonstrated principle of the frog in the pot of boiling water. Toss a frog in boiling water and he instantly leaps out. However, place that same frog in a pot of water and slowly increase the temperature and he's cooked before he is aware that he's been snookered.

Until 1913 we had a Constitutional monetary system of gold and silver with honest weights and measures. However, like the snookered frog, we have over the years arrived at the point that our monetary and financial goose has been thoroughly cooked. Never, in the trial of a thousand years, could such a liberty draining proposition have been foisted on the American people in one fail swoop. Again, like the frog, our liberties are stripped from us one degree at a time.

A real U.S. dollar is defined as 1/20 ounce of gold, or about one ounce of silver. In 1913 a dollar was worth one dollar (1/20 oz. gold). Today that 1/20 ounce of gold will cost you (at $1,600/oz) $80.00. Run the numbers and you can see that 1/20 ounce of gold ($80.00) has the same purchasing power it had almost 100 years ago, while todays paper dollar has retained but a pitiful 3 cents of its original buying power.

The usual defense by the culpable crowd inside the beltway is to blame it on inflation. That's true. What they don't tell you is that they are the cause of inflation. Part of what makes this exercise so frustrating is the distressing fact that people fail to grasp the fundamental truth that inflation is not caused by higher prices, but rather higher prices are caused by inflation or the debauching of our monetary system. As long as folks can exchange their paper dollars for whatever goods and services they want, then what's the problem?

Looking at the above example of purchasing power the problem should be clear. At one time our money was a store of value. If you had stuffed that 1913 dollar (backed by the gold standard) under your mattress, today it would have the same buying power it had 100 years ago. Unfortunately, however, in the real world today its only worth a paltry 3 cents. The reason being we no longer operate under the solid monetary system established by the Constitution, but rather the "new and improved" system created by spend crazed politicians and baron bankers.

We shall see that the insatiable spending by the politicians and the creation of (fiat) money by nothing more than a bookkeeping entry by the bankers, has indebted every man, woman and child in the country in an amount that is rapidly approaching $16 trillion dollars. With our population now at 300 million, that equates to $50 thousand dollars for each of us, or about $200 thousand dollars per average household. Keep in mind that is just the debt. Add to that number the current budgets of local, state and federal governments and you are looking at another $15 thousand dollars per head, or $60 thousand dollars per household.

Now, consider that the lower 50% of income earners pay little or no taxes, which means that the proportional share of the debt and current budgets per head for those that do pay, shoots skyward exponentially.

It would appear hopeless. However, there is an escape clause contained in the Federal Reserve Act itself. But then, it would require honesty, integrity and fortitude on the part of the 535 "selfless" dedicated public servants that supposedly represent us, not themselves and the bankers. It would require slaying the CREATURE.

STAY TUNED

LOTS MORE TO COME



Cyber Mayor