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How our Money and the Federal Reserve Work

Tuesday 23rd July 2013

If you have not yet read the news report on the First Ever Federal Reserve Audit, be sure and do so either before or after you read this article.

For those who have never been taught about the Federal Reserve and their relationship with the United States Government, I offer this very abbreviated lesson to help you understand why the news story on the First Ever Federal Reserve Audit is so important.

My personal beliefs are that the rich have a right to get richer and the less than rich have a right to obtain riches through their industry. Both, however must abide by laws providing equal ground to all of us. The Federal Reserve is part of a world-wide organization that ensures the less than rich will seldom see riches of their own. This means, for example, that I believe the Tea Party Movement is ill advised and is based on Socialism which has NEVER been successful at any time, anywhere in the world. Research Great Britan and Germany during the last century, for example. But that is another story which will be addressed sometime in the future.


The Federal Reserve is a private bank that is not a part of nor controlled in any way by the United States Government. Periodically, uninformed but well meaning congressmen/women get duped into siding with other politicians who are simply power and money hungry.

The Central Bank or Bank of the United States or Federal Reserve or any of the other names that have been used for more then two centuries are granted a charter to control US currency. It is the right and obligation of a government to make and control their own money. This is part of the definition of a sovereign nation. When a charter is given to a private organization, contrary to what we are told through the media, the government no longer has anything to say about how much is available to the citizenry.

Instead, a totally debt based economy is created in which it is impossible to balance the federal budget. The US Government owns the printing presses and the buildings the presses are in because they paid for them with the money they borrow from the Federal Reserve. They pay for the paper, the ink and the labor to produce the currencies. The Federal Reserve then owns the money, loans it back to the US who must repay it with interest. The Federal Reserve gets richer while the rest of us pay them more and more through taxation.

The best example is with the recent bailout of the financial institutions in 2009 and 2010. The banks were given our money to loan out to us. Instead, they simply pocketed the money and it is still hard to get loans (not that we should borrow, but that was the idea). Now we owe the bailout money and the interest on that money; but only the bankers pockets got stuffed.

As long as we allow a private organization to control how much money is in circulation, they control inflation, deflation, crashes, bankruptcy rates, home and farm ownership, etc. Did you know that President Andrew Jackson was the only president in history to balance the budget? He did it by refusing (and getting congress to go along with him) to renew the Bank of the United States charter. The US started printing its own money and could control how much was in circulation. This provides as much money in circulation as is needed but retracts the excess as needed also. No inflation, no deflation.

It does work. It has worked in the past and it will work again when we insist on the abolishment of a central bank by any name. The bankers will scream that it is not the business of a government to print and control money; that only a private organization can handle such a complex task. They claim that there is a natural boom and bust cycle in business - that it is not the central bank that causes the ups and downs in the economy. This is another of the bold-faced lies the Federal Reserve and all central banks spew from their mouths.

Look at history for yourselves and you can see the mess the central bank has created over and over throughout history as governments get duped into letting someone other than the government control the amount of money in circulation. The Federal Reserve (the current name for the central bank) was originally given a charter for 20 years and it has been renewed several times, each time with the same disastrous results. The last charter was granted in 1913 for a period of 99 years. This means it is about to expire which gives us a chance to take back control of our own finances as a government and as a country.

Remembering what the central banks use as an excuse for the need for their existence, that ups and downs are normal but only they can reduce that roller-coaster ride, consider just a partial list of what has taken place during the last 100 years while the Federal Reserve has been in control. You can go back even further and see the same results every time a central bank has existed.

 

  1. WW1
  2. The Great Depression
  3. WW2
  4. The Korean War
  5. The Vietnam War
  6. The Depression in the 1980's
  7. The false Hi-Tech bubble of the 1990's
  8. The bursting of that bubble in the early 2000s
  9. The crash in 2008
  10. The bursting of the Real-Estate bubble
  11. The failure of major companies that left the leaders billions of dollars richer while the investors were left bankrupt.


Does this mean there will never be financial problems for the country again if we eliminate the Federal Reserve? Of course not because there will always be power hungry and money hungry people elected to office. But at least they can be replaced in each election. A 20 year charter is a 20 year charter. A 99 year charter is a 99 year charter. Once renewed, it goes until that charter expires and they have perpetrated whatever disasters they wanted to make us think we need more money printed. I prefer to limit the reach of the mistakenly elected power mongers to a much shorter term so things can be brought back to balance whenever needed.

If you want to learn more or just verify the facts stated above, ask me. Everything I've said can be substantiated. Ask your congressmen and women to see how much they know. You will be very shocked at either their ignorance or their backing of the thieves in the central bank. Try asking those seeking your votes in the next election; you may find yourselves looking a little harder at your current choices.

All this boils down to the fact that as the Federal Reserve prints trillions and trillions more US Dollars, the US Government owes trillions and trillions more plus interest that can only be repaid by our taxes which can no longer be sufficient to pay the debt. Not only do we pay more taxes to repay the principle, we also have to pay even more taxes to pay the interest on more and more money being printed and distributed. There is no end until it either collapses or is put under our control, not the control of private business with the sole intent of putting us under bondage.

Currently the Federal Reserve is winning because they have all the money. If we take away their control we come out winners in the long run. Vote to save America, not to make the central bank even richer. There is nothing wrong with being rich; we all have the right to achieve wealth if we can. But the central bank system prevents 99% of us from ever seeing any wealth of our own.

About the author: Jim Higgins

Jim Higgins