Monday, January 19, 2009

Abolish the Federal Reserve

"The budget should be balanced; the treasury should be refilled; public debt should be reduced; and the arrogance of public officials should be controlled." -Cicero. 106-43 B.C.

The world stands dumbfounded at how Bernard Madoff could pull a $50 Billion Ponzi scheme while an even bigger ripoff was executed by the investment banks and investment bankers over the US Government and US taxpayers. The US just gave over a trillion dollars to bailout several banks and insurance agencies. Much of this money went straight into the pockets of executives who made off with multi-million-dollar bonuses with the excuse that the money needed to be used "to keep and attract talent."

What is wrong with the US Government and US banking system? The US Government makes money in 5 ways. #1 taxes, #2 fees, #3 tariffs, #4 prints money, #5 issues bonds. The US Treasure has the authority to print money and issue bonds. Sometimes the US needs to run a deficit like during a war. But the problem with using bonds to finance expenditures, is that the interest on those bonds make it impossible for the national debt to be paid off.

What the following article and YouTube video simply suggest is to pay off our debts by printing money, get out of debt immediately. This video says that printing money to pay the debt would not cause inflation if you also at the same time abolished fractional reserve banking. Fractional reserve banking is the practice that allows banks to lend $10 dollars for every $1 they own. By forcing banks to lend only what money they had on hand, there would be an instant demand for the excess US notes. The result is that we would maintain a balance between supply and demand and at the same time we would substitute interest carrying debt with interest-free US currency.

The international investment bankers run by the ultra-elite families such as the Rockefeller's, Oppenheimer's, Schroeder's and Dulles, and the Rothschild's (De Beers, Bank of England, JP Morgan) own over 50% of the national debt while private US-held treasury bonds account for 2.5%. Now if the Fed didn't have more control of the US Government, Barack Obama has made Rahm Emanuel, an big-time investment banker and on the board of directors of "Freddie Mac" under the Clinton Administration, his Chief Of Staff. He has also made the previous Fed Reserve President, Timothy Geithner, the Secretary of the Treasury.

There is no reason the US Treasury Department can't do everything the Federal Reserve Bank does except pay their top executives obscene paychecks and bonuses. See, because if they worked for the government, they'd have to be paid like a government employee. But because the Fed is private, they get paid anything they want. The US needs to abolish the Federal Reserve.

(by Melvin Sickler)
Abraham Lincoln
During the Civil War (from 1861-1865), President Lincoln needed money to finance the War from the North. The Bankers were going to charge him 24% to 36% interest. Lincoln was horrified and went away greatly distressed, for he was a man of principle and would not think of plunging his beloved country into a debt that the country would find impossible to pay back.

Eventually President Lincoln was advised to get Congress to pass a law authorizing the printing of full legal tender Treasury notes to pay for the War effort. Lincoln recognized the great benefits of this issue. At one point hi wrote: "... (we) gave the people of this Republic the greatest blessing they have ever had - their own paper money to pay their own debts..." The Treasury notes were printed with green ink on the back, so the people called them "Greenbacks". Lincoln printed 400 million dollars worth of Greenbacks (the exact amount being $449,338, 902), money that he delegated to be created, a debt-free and interest-free money to finance the War. It served as legal tender for all debts, public and private. He printed it, paid it to the soldiers, to the U.S. Civil Service employees, and bought supplies for war.

Shortly after that happened, "The London Times" printed the following: "if that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe."

The Bankers obviously understood. The only thing, I repeat, the only thing that is a threat to their power is sovereign governments printing interest-free and debt-free paper money. They know it would break the power of the international Bankers. After this was published in "The London Times", the British Government, which was controlled by the London and other European Bankers, moved to support the Confederate South, hoping to defeat Lincoln and the Union, and destroy this government which they said had to be destroyed.
They were stopped by two things.

First, Lincoln knew the British people, and he knew that Britain would not support slavery, so hi issued the Emancipation Proclamation, which declared that slavery in the United States was abolished. At this point, the London Bankers could not openly support the Confederacy because the British people simply would not stand for their country supporting slavery. Second, the Czar of Russia sent a portion of the Russian navy to the United states with orders that its admiral would operate under the command of Abraham Lincoln. These ships of the Russian navy then became a threat to the ships of the British navy which had intended to break the blockade and help the South.

The North won the War, and the Union was preserved. America remained as one nation.
Of course, the Bankers were not going to give in that easy, for they were determined to put an end to Lincoln's interest-free, debt-free Greenbacks. He was assassinated by an agent of the Bankers shortly after the War ended.

Thereafter, Congress revoked the Greenback Law and enacted, in its place, the National Banking Act. The national banks were to be privately owned and the national bank notes they issued were to be interest-bearing. The Act also provided that the Greenbacks should be retired from circulation as soon as they came back to the Treasury in payment of taxes.

In 1972, the United States Treasury Department was asked to compute the amount of interest that would have been paid if that 400 million dollars would have been borrowed at interest instead of being issued by Abraham Lincoln. They did some computations, and a few weeks later, the United States Treasury Department said the United States Government saved 4 billion dollars in interest because Lincoln had created his own money. So you can about imagine how much the Government has paid and how much we owe solely on the basis of interest.

The Federal Reserve Act
There were changes in the money and banking laws for the next fifty years. Finally, in 1913, the Bankers were able to get their Federal Reserve Act passed through Congress which replaced the National Banking Act that had earlier replaced the Greenback Law. If the Government would have continued the policy of Abraham Lincoln, the warnings given in "The London Times" would have come to pass. America would be a debt-free nation, the most prosperous in the world. And the brains and the wealth of the world would have come to America.

But with this Federal Reserve Act being passed, Congress gave up its power to create its own money that it was given in the United States Constitution, and gave this power over to private Bankers who called themselves the Federal Reserve. The Bankers had achieved their ultimate goal, for now the United States operated under a central bank that was privately owned. They now had the power to run the country by controlling the creation of the money, and were free to charge the interest they so desired.

As Mayer Anselm Rothschild once said: "Permit me to issue and control the money of a nation, and I care not who makes its laws..."


crusaderservices said...

NOT to banks that would encourage debt which CAUSED this. Just give OUR money BACK to us. Money we EARNED. (Debt free, not borrowed on credit at 21 percent.) Its right there in front of everyone. But the democrats do not want THAT part,

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Jason said...

...And here we sit, in 2009. A nation in a mountain of debt that not even our great-great grand children will be able to pay. A nation that should be thriving in industry and services. A country that has not seen the record number of foreclosures, bankruptcies, job losses that we've seen today. It's SHAMEFUL that ANY true American citizen could defend the Federal Reserve and say that it should not be destroyed.

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lindsay said...

Please educate yourself before putting things like this out into the world. Your entry demonstrates VERY limited knowledge of the fed and the way that it is operate. For one this Fed officials do not receive large salaries or bonuses, in fact, the Chairman (Bernanke) receives less than the regional bank presidents. The Federal Reserve plays a vital role in keeping the economy safe in functioning. Someone else on here said that it is deplorable that any true American would support the fed, well I believe that it is deplorable for someone to speak when they have no idea what they are talking about.

BRoz said...


Pease educate my ignorance and provide specifics about where what I have said is wrong and what benifits the FED provide that the US Treasury could not perform.

Also, I am interested if you have any conflicts of interest on this issue. Why are you so passionate about defending the FED?

Last time I looked, the FED was not part of the Constitution. Therefore, I don't consider it unAmerican to question its utility.

lindsay said...

You stated or at the very least, implied that the fed “pay[s] their top executives obscene paychecks and bonuses”. This is completely untrue. As I stated because the Fed is quasi-public; one of the aspects that makes it a public entity is that the salaries of the officials are decided by the government. You also repeatedly call the Fed a “private” organization. This is not true the Fed is a quasi-public organization. Also the Fed does not create money. When the expression that the fed is “printing money” is used it simply means the fed is expanding the size of its balance sheet and thus is able to funnel money directly into banks in an effort to increase liquidity in the market. And that right there is something that the Treasury Department could not do. Also, one reason that the Fed is set up in the manner that it is, is so that it is free of political entanglements. The Fed manages to remain this way because of the length of the terms of the board members, the election process of regional bank presidents and lack of financial ties between the Fed and government. If the Fed were to take over the responsibilities of the Fed it would be completely tied to the government and thus the not as effective as the current Fed system. Also, for the record I have no conflict of interest.