Monday, November 15, 2010
Exposing the scam...
The Federal Reserve debunked
Q.: Who has the right to create money in the United States?
A.: Under the Constitution, it is the right and duty of Congress to create money. It is left entirely to Congress.
Q.: To whom has the Congress delegated this money-creating right?
A.: To the banking system, that is, to the Federal Reserve System and to the commercial banks of the country.
Q.: If the Government can issue bonds, why can't it issue money, and save the interest?
A.: A few clear-headed and firm individuals, such as Abraham Lincoln, have insisted that the Government should.
The late Thomas A. Edison stated the matter this way: If our Nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good also. It is absurd to say that our country can issue $30 million in bonds, and not $30 million in currency. Both are promises to pay: but one promise fattens the usurer, and the other helps the people.
However, it has long been one of the political facts of life that private banks must be allowed to create the lion's share of the money, even if not all of the money. Thus there is little opposition to the Government's printing bonds, and then permitting the banks to create the money with which to buy those bonds; but proposals that the Government itself create the money instead of the bonds have always set off tremendous political upheavals. For example, Abraham Lincoln set off a political furor when he insisted upon having the Government issue $346 million in money (the so-called “greenbacks”) instead of issuing interest-bearing bonds, and paying interest on the money.
Q.: If the Government issued more money instead of Government bonds, isn't there a danger that the Government would issue too much money, and cause inflation?
A.: No. It is no more or no less inflationary for the private banks to create $1 billion of new money than it is for the Government to create $1 billion of new money. Furthermore, as an agency of the Government, the Federal Reserve System decides in any case the total amount of money to be created.
Louis Thomas McFadden (1876-1836) was chairman of the House Committee on Banking and Currency from 1920 to 1931. He said, on June 10, 1932:
“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the national debt several times over. ”
Jack Metcalf, Washington State Senator for 20 years, and U.S. Congressman from 1995 to 2000, a republican senator in Washington, waged a war to abolish the Federal Reserve and restore to Congress its power to issue money, a power that is clearly stated in the U.S. Constitution:
”Our most basic document, the U.S. Constitution, states in Article 1, Section 8: `The Congress shall have the power to coin money and regulate the value thereof.' Nowhere is there the slightest hint of authorization to delegate that power even to another governmental institution — much less to a private banking system. That is absolutely outside the most broad interpretation possible.”
In 1986, Metcalf single-handedly persuaded the National Conference of State Legislators to endorse unanimously a resolution urging states to challenge the constitutionality of the Federal Reserve. He wrote a book, “The 200-year debate”, and undertook a campaign to educate the population on the workings of the banking system. One of his favorite ways to explain the workings of the Fed is to tell the story of the “Federal Reserve saloon”:
“Four cowboys put up their belongings as collateral to borrow a deck of cards. The hitch is that each of he four must bring back 14 cards at the and of be evening — a mathematical impossibility (there are only 52 cards in all, that is to say, 13 to each). In the end, one player ends up with only 10 cards and loses his belonging... that is the problem with be fed. It creates money to make loans the doesn't create the money to pay the interest.”