Introduction

My first task was going to be writing about the Constitution of the United States but I found that to be a subject that would serve better by being broken up into separate parts for one post as there are many different parts to it. Instead each section must be gone through one by one and read thoroughly and I myself need to do that. Many people would be shocked at how our leaders go against it each and every day and have been for many years. We as citizens of this fine country need have a duty to ensure our leaders are held to a standard and the standard absolutely needs to be the U.S. Constitution so why not start with the very thing you and I live, breathe by. If the title hasn’t given it away let me give you a hint. Think about it, why do we work, why do we go to school. It’s so we can find a job and make money. Yes, folks the biggest problem we deal with is the Federal Reserve. Let me explain why our government has been getting away with something that isn’t even legal according to our constitution.

History of the Fed

1. Federal Reserve Act

First we start with the history. The Federal Reserve as we know it today began on December 23rd 1913 when the Federal Reserve Act was enacted to prevent future financial panics from happening. One only needs to look to the Great Depression, or the Great Recession of the late 2000s or how about the many other crashes including the Dot-Com bubble of 2000, or the stock market crash in the 80s, or the stagflation and oil crisis that took place in the 70s where many manufacturing jobs were lost to know why this act has failed us time and time again. The catalyst for all of this was of course the Panic of 1907 where the New York Stock Exchange fell 50% in mid-October (an example of an October surprise which I’ll get into at a future date.) A number of banks had runs after the Knickerbocker Trust Company went under causing investors to panic. With The Federal Reserve Act in place there now are twelve banks responsible managing our money supply. Make no mistake about it, this is not a government agency, but instead is a private company. They now have a “Board of Governors” who decide the Federal Reserve requirements, discount rate etc. They supervise all our banking and financial institutions enforce compliance to policies and more importantly distribute currency, coins to banks, and operate electronic payment systems.

What exactly is the problem with this?

2. Unconstitutional

Let’s go back to the Constitution and I quote. Article I Section 10 states “No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.” Out paper dollars used to be just ‘certificates’ that were backed by either gold or silver. The one dollar bill had the term “Silver Dollar” on the bottom and a $20 bill would say ‘In Gold Coin. During the Great Depression all gold was seized by FDR and the people who had them were ripped off by being forced to sell at rates well below market value then in 1971 both gold/silver were done away with entirely. This is where we get into the meat of why the Federal Reserve is becoming an every growing problem here in the U.S. Lets get into how money works and you’ll see why this system is greatly flawed.

How Money is Created

1. Introduction

If one were to take a careful look at how money is created, they’d come to realize how badly the American people are being ripped off. The money creation process in and off itself is fraudulent and here’s why.

2. Money Creation

When the government needs money they simply call up the Federal Reserve and ask for it. Let’s say they need $1 billion dollars. After asking for this amount the Fed asks the U.S Treasury for $1 billion dollars worth of bonds. Keep in mind that a bond is a loan contract, just like one citizens use to buy a car or house. After the Fed receives the bonds they hand the government the $1 billion dollars as requested.

3. No backing

So what’s wrong with that? Remember what we said before about the dollar being backed by gold or silver? That was done away with back in 1913 and completely removed by 1971. Now when new money is put into banks it’s no longer backed by any sort of commodity. So when new money is created it takes away value from the existing money already in circulation. This is why we have experienced inflation over the years in this country however there are methods the Fed uses to offset this from getting out of control.

4. Dollars in Circulation

Introducing the Federal Income Tax. This removes money a lot of money from circulation to prevent hyperinflation from occurring. The Federal income tax as we know it today was put into place, you guessed it 1913, the same year the Federal Reserve was created. This money is being stolen from us from right under our noses. The goal of the Federal Income Tax is to take money out of public circulation. But there is another way they can create money or take it out of circulation.

Federal Open Market Committee (FOMC). Through open market operations the Fed can buy or sell securities on a secondary market. By buying securities they bring new money into circulation, by selling securities they take money out of circulation.

5. Applying Interest

The interest rate is reason on its own to abolish the Fed and set new regulations that will protect each and every one of us. The $1 Billion we created earlier comes with interest working hand in hand that the money was created with a promise to pay it back. (The bonds) But now with interest. So now we must add whatever the current interest rate is to the total amount. Think about it. If you take out a loan you pay the principal but if you owe the whole thing plus the principal it means that only the principal has been created and if I use a smaller illustration it’ll be easier to understand.

Example

Let’s say I distribute $1 to ten people by giving them each $.10. Because this money was created out of debt they now all owe back not just a dollar but a dollar plus the interest. So they’d all owe $.11 cents. (not exactly but you get the point.) That means these ten people won’t have enough to pay me back and one if not more of them will lose the money. Its like a game of musical chairs but with money. Someone will be left with nothing. This is why we have poor sectors of society and always will. It was created by design by the powers that be to keep us all in check. The Fed often adjusts the interest rates by raising or lowering it based on how well the economy is doing. It’d been kept very low for a long time, and was at its recent lowest (.25) in 2020 during the pandemic but was gradually raised as we came out of it. In July of 2023 when it was at 5.25-5.5. More recently it was cut again to 4.75-5 in September.

6. What does the Fed’s Interest Rate mean?

If the interest rates are higher it usually indicates a healthy economy, if its lowered it means the Fed is trying to save us money. This allows them to expand or contract the money supply but keep in mind the securities that FOMC can buy or sell to accomplish this. When more money is in circulation we will be paying more for groceries, houses, cars etc. Notice how much misinformation there is out there by the media about why we’re paying more. They use words like “price gouging’ and ‘price fixing’ to distract the public and change the conversation into making more government regulations for companies to follow. Keep in mind how money is created and remember that when they artificially put money in circulation inflation will occur. It makes all of us poorer and less money will be spent. Then we will continue to see businesses, (right now many stores and restaurants are being closed. In some cases new stores are being open because the old ones aren’t making enough money), close their doors due to struggling in this inflated economy. Its worth noting that the Fed’s interest rates have consistently been on an overall downward trend since 1980 and our economy is receiving a shock from it being raised to around 5% a few years ago, believe me we’re in big trouble. It had been kept at a super low rate since the 2008 economic crises created by the housing bubble. They maintained this near zero rate throughout both of Obama’s presidencies to keep the economy stable. During those years they supercharged the economy by printing up lots of money and putting it into circulation in what they called a ‘stimulant package.’ The current interest rates haven’t been this high since 2007, almost eighteen years ago. Believe me when I say we’re heading into a recession possibly unlike anything seen in most of our lifetimes.

7. Fractional Reserve Banking

Now let me throw a wrench in the whole deal with Fractional Reserve Banking. In short, its a requirement that banks must keep on hand in relation to the total deposited. The reserve requirement is 10%. For example, if a bank has a 10% reserve requirement and a customer deposits $1,000, the bank can lend out $900. Someone else deposits money and they do the same thing. This is why we hear people talking about ‘bank runs’ sometimes. A bank run is when too many people withdraw their money at once, typically because they fear the banks will fail. There have long been rumors of bank runs but unless something triggers it I doubt they’ll happen, at least not overnight. It is possible though and this is where other people aware of The Federal Reserve’s scams tell people to invest in gold or silver to protect their assets.

Closing

President JFK tried to take the power the Federal Reserve had through Executive Order 11110. His goal was to give the power of our money to the US Department of the Treasury. He was trying to replace Federal Reserve Notes with Silver Certificates. (Those had been in use during the 1950s when the US was prosperous. Silver bullion peaked out in 1962 and in 1963 there was an expected shortage when Public Law 88-36 was enacted. (June 4th 1963).

-From Wiki- The act, which became Public Law 88-36 (77 Stat. 54), repealed the Silver Purchase Act of 1934 and related laws, repealed a tax on silver transfers, and authorized the Federal Reserve to issue one- and two-dollar bills, in addition to the notes they were already issuing. The Silver Purchase Act had authorized and required the Secretary of the Treasury to buy silver and issue silver certificates. With its repeal, the President needed to delegate to the Treasury Secretary the President’s own authority under the Agricultural Adjustment Act.

It’s been long rumored that the CIA was involved with the plot to assassinate JFK but that’s another topic for another time. The important thing to learn here is that the power yielded by the Federal Reserve meant that if someone stands in their way, they will remove that person. But if all of us demand a change through congress we can remove the money barons and replace it was something backed by commodities. Hopefully this has taught you something about how our economy and money supply are manipulated and inspires us to replace it before its too late.

Sources

Wikipedia, Google, Modern Money Mechanics