"I believe that banking establishments are more dangerous than standing armies." These are the wise words of Thomas Jefferson. Wise words that have been ignored for the past century when we established the Federal Reserve in 1913. I have been studying the Federal Reserve for almost a year now and now have the opportunity to spread my message on what I have learned. Everyone here has spent money at one time or another, but what they don’t know is that the money that they spend would soon be worthless. Most of you here might be surprised to hear that there is nothing “Federal” about the Federal Reserve. It is a private banking cartel that only serves benefit the shareholders of the bank, who have never been revealed. Therefore, I will reveal the history of the Federal Reserve, its unconstitutionality, and the basics on inflation and fractional reserve banking.
To start, we will look at the history of the Federal Reserve. The origins of the Federal Reserve can be traced back to 1910, three years before it was founded. In this time, several bankers who ran the biggest banks in the country and the Secretary of the Treasury at that time formed a secret meeting on Jekyll Island, off the coast of the state of Georgia to make what was to be known as the Federal Reserve Act of 1913. Some however, might think that this is a conspiracy theory and is full of nonsense. This has been proven false; it is no “theory” as seen after an article posted by the Federal Reserve Bank of Atlanta about the meeting on its 100th anniversary in 2010. Promises of no more economic panics, secure national finances, and more economic prosperity were given almost a century ago in 1913. These claims, specifically concerning the economic panics were false however given the almost 20 panics that have been made within the past century. According to the Consumer Price Index calculator (and with some basic math), since the inception of the Federal Reserve, our dollar has been devalued almost 97%, making a dollar collapse inevitable in the years to come.
Next, let’s look at the unconstitutionality of the Federal Reserve. The Federal Reserve is not only a private bank, but it is also unconstitutional in existence. According to Article One, Section Eight, of the U.S. Constitution, "Congress shall have the power to coin money in gold and silver coins and shall regulate the value thereof." Oh how far we have gone from this system. We don’t even have gold coins in our system. We have coins, made of other material than gold and silver of various value and dollar bills made of paper. The constitutionality of dollar bills come into question per Article One, Section Ten, which states: "No state shall emit bills of credit." Dollar bills were put onto a gold standard however as a way to make a compromise between the two parts of the constitution. However, the U.S. dollar was detached from the gold standard in 1971 and is now worthless pieces of paper. Some of you might ask how the U.S. dollar is worthless when you can buy things with it. Gold has true value in any economy, and has been holding onto that value for thousands of years. Currencies like the dollar, also known as “fiat money”, have no true value. Fiat money has value only because the government says so, but it is not backed with gold or any other commodity.Anything can be made into a fiat currency be it coco beans, sticks, or slabs of stones.
Throughout history, all fiat currencies have collapsed, and no doubt the dollar will too. How a currency collapses though is typically done via inflation and fractional reserve banking. Inflation is defined as “The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling”. For example, according to the National Archives, the average salary in the U.S. back in 1940 was about $1,500, compared to the average salary of about $43,000 in 2011 according to the Social Security Administration. This creates the illusion of wealth when in fact, the currency is slowly dying. If inflation is the main problem, then fractional reserve banking is the motivator for the problem to grow. According to Modern Money Mechanics (revised 1992), made by the Federal Reserve Bank of Chicago: “Banks actually create money when they lend it.” It then goes into further analysis saying that “The initial $10,000 of reserves distributed within the banking system gives rise to an expansion of $90,000 in bank credit (loans and investments) and supports a total of $100,000 in new deposits under a 10 percent reserve requirement.” This means for every dollar in a bank, up to nine dollars can be lent out simply by creating nine dollars out of thin air.
So now, a lot of you now have a different view on our money system we have today. What has been revealed to you is the history of the Federal Reserve, its unconstitutionality, and the basics on inflation and fractional reserve banking. All of this information that I have given you may make you think that hope is lost. For the past several years, there have been protests, rallies, and constant fights against the Federal Reserve in the expanding “End The Fed” movement. The roots of the movement made by Texas Representative Ron Paul and various other people have contributed to the movement and have made speeches at rallies and other related events. If you want to have true economic liberty, if you don’t want to see our economy collapse, join the fight to End the Fed.
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