In 1913, the US Government gave up its enumerated power granted in the Constitution "To coin Money, regulate the Value thereof" (article 1 sec 8). 1913 was the year that the Federal Reserve Act was passed the day before Christmas Eve. Since that time, money policy has been controlled by a small group of private individuals. These private individuals who control monetary policy in the US and other G20-member states are who Washington Bureaucrats refer to as the "Special Interests". Historians refer to the FED as the "Monster from Jekyll Island" which refers to the Ultra-Elitist Club where the plans for the FED were drawn up.
The US Congress was promised that by giving up their Constitutionally enumerated privilege, to create money and regulate monetary policy that the FED would prevent inflation. However, since the creation of the FED, the US dollar has lost over 95% of its purchasing power. The FED also promised to create more stability in the markets as opposed to the intrinsically unstable business cycle to that point in time. In reality, since the creation of the FED, the markets have experienced the highest bull markets (roaring 20's, dot.com 90's) followed by the deepest depressions (great depression 30's, S&L busting 80's, bubble bursting 00's).
In fact, Milton Friedman, Nobel Laureate Economist, always insisted that the FED caused the Great Depression by contracting the money supply. FDR had always blamed Herbert Hoover for causing the Depression thanks to the Hawley-Smoot Tariff Act of 1930. Ben Bernake, who was working for the FED at the time, was speaking at Milton Friedman's 90th birthday and confessed that Milt had been correct all along and the FED caused the Great Depression by contracting the money supply. "We did it," Bernake said, "and we're sorry, but thanks you we will never do it again".
Friedman would just live long enough to witness Bernanke and the FED break their promise as the FED stopped releasing M3 data in 2006 (a very important measure of the money supply), and then turned a blind eye to Goldman Sachs who was fraudulently selling banks worthless mortgage-backed securities, and then in 2007, instituted the Basil 2 Accords which tightened fractional reserve requirements for banks. The Basil 2 Accords, issued from the Bank of International Settlement in Basil Switzerland, had the same effect on the US that the Basil 1 Accords had on Japan resulting in Japan's "Lost Decade."
The tightening of fractional reserve requirements resulted in a contraction of the money supply, which resulted in reduced lending, which resulted in the bursting of the housing bubble, which caused the Collateralized Debt Obligation/Mortgage-Backed Securities/Toxic Assets to become worthless, which caused the banks to lose all their fractional reserves and no longer be able to lend money, which resulted in banks to fail, which led to the trillion dollar bailout of only the big banks who were "too big to fail."
A few patriots out there are calling to "End The FED." However, you could get rid of the FED today, and nothing would change. Nothing would change in our economy because it's not really the FED that is so damaging by itself. What is damaging are the financial and monetary systems and instruments that the FED has instituted over the last decade. Those instruments such as Fractional Reserve Lending, Fiat Currency, the HUD/FHA Amortized Mortgage, and Derivative Markets, will remain in place and still control our economy.
So, now the issue remains, what have the Ultra-Elites planned to replace the FED with? Many people have forgotten that the Ultra-Elites where playing the same games in the 1930's as today. Today the media warns us about the Mayan Calendar ending winter solstice Dec 21st 2012 and great calamities that may occur. In the 1930's the media was claiming that the Egyptian Pyramids were warning of a Great Financial Depression. The Great Depression did happen, but as Bernake confessed to Milton Friedman, it wasn't because the Ancient Egyptians said so. The entire thing was engineered. My wife's Uncle is one of the top authorities on Mayan Art History and is the author of the most highly regarded translation of the "Popol Vuh". He says all this 2012/Mayan Calendar talk is nonsense. Just like 1930, something may happen in the next 2 years, but I assure you its not because the Maya knew anything about it, it is because whatever happens was designed and engineered to happen.
So far, the Ultra-Elites have been trying to pass the Carbon Credit Tax. This Robin Hood taxn would be world tax that would go to the UN. The next attempt to get into our wallet was the Financial Reform Act which included at VAT or Ad Valorum Tax which again is a world tax, that would impose a tax on every transaction that occurs supposedly for the purposes of putting trillions of dollars aside for the next bank failure that these people who are proposing have admitted to causing and will cause in the future.
This is the MO or modus operandi of the Global Elite. In their attempt to create a "One World Government", "New World Order", and rebuild the Tower of Babel, they employ agent provocateurs to come in and create disorder, discord, and chaos so that they can come in and act like the saviors in instituting the solution and solving the problem. It just so happens that the Elite are so smart that they knew someone was going to try to sneak onto an airplane with explosive underwear, that is why they had already purchased thousands of naked body scanners to be placed in airports across the US.
When the Police want to break up a peaceful demonstration, a few of them dress up as anarchists, break a few windows and torch a few cars, giving the rest of the police an excuse to forcibly break up the demonstration, fire tear gas, try out their new sound and microwave cannons, and other cool riot control gear. The LDS Church experienced this sort of thing in Missouri. Agent Provocateurs joined the LDS Church, formed a secret inner circle called the "Danites" and went out provoking the Missouri neighborhood to anger against the Mormons until Governor Lilburn Boggs signed an Extermination Order making it legal to kill any member of the Church of Jesus Christ of Latter-Day Saints within the State of Missouri.
And I won't be surprised if more mayhem is coming up. If the Globalists want to replace the FED with something else, and so far we have rejected their Carbon Tax and VAT, I am sure they are going to "up the anti." It is the Globalist MO to cause or at least take advantage of situations that cause fear and chaos. They then come in like a false Savior or the Antichrist promising safety in exchange for our liberty. Benjamin Franklin warned "Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety". This was how George W Bush got the Congress to pass the Patriot Act which allows the Federal Government to spy on the American People without a warrant.
To understand the following you need to understand how Fractional-Reserve Banking works. When the US Government want money created they issue US Bonds to the FED. Lets start with say $10,000 When the FED receives a fancy signed piece of paper from the US Treasury, then it turns that $10,000 bond into $10,000 in Federal Reserve Currency. The FED then lends that $10,000 to a FED-member bank at Prime Interest (currently 0%). That Mega-Bank can then lend $200,000 based on that $10,000. That means that the bank created the majority of the money in the money supply and not the US Treasury nor the FED. The mega-bank created 95% of the money out of thin air. You also must know that the money for your house mortgage did not come from your local bank, but came from one of the FED-member, mega-banks like Wells Fargo, Countrywide, FannieMae, and Bank of America. Your local bank just services the loan.
The expiration of the Federal Reserve Act provides a wonderful opportunity. In addition to getting rid of the FED, we must also get rid of the many financial and monetary systems and instruments the FED has instituted.
1. Fractional-Reserve Banking: Full-Reserve Banking would remove the inherent instability and volatility in banking system that drives the business cycle. Banks would borrow 100% of the money they lent and would not risk failure when they lose their small fractional reserves as they have done throughout US history.
2. US Treasury Reform: Allow the US Treasury to create all the money in the money supply and not just a fraction of it as it does now. This would allow the US government to collect fees on all of the money created an not just a small fraction of it. Currently the FED makes the US Government about 50 Bil/year. If that amount represents only 5% of the money supply, then 100% money creation could bring in close to 1 Trillion/year. That kind of money would replace the need for federal income tax.
3. Banking Reform: allow local and state banks to borrow directly from the US Treasury cutting out the Mega-Bank middle men who add not value to the system but soak up all the profits.
4. Lending Reform: institute no-interest loans where home buyers to go to their local bank with 1o% down and a fee to cover administration costs. If approved, the bank and borrower would become joint owners of a property. The borrower would begin repaying the bank in monthly installments including an administration fee. However, unlike the FHA/HUD loan, the borrower would immediately begin to build equity until the loan was paid in full. If the borrower experienced an emergency and missed a payment, that payment would be deducted from his equity and turn into profit for the bank. In this way, the loan turn into a reverse mortgage at any time. Getting rid of the Amortized loan would get rid of a major diver of inflation in our economy as most people don't build equity on their home unless the price of their home increases and they can turn around and sell their home for more then they paid for it.
5. Monetary Reform: replace US Currency on the gold and silver standard. To cover the needs of the US money supply, a basket of commodities could be used. Or on the other hand, coining money could just mean that the Federal government would assure the purity of gold and silver and stamp that gold and silver as "legal tender" which has been certified.