Letter The Federal Thieves... I mean Reserve (10/28/2022)
If you go to the St. Louis Federal Reserve web site they have a
nice explanation about what it is exactly that the Federal Reserve
does: https://www.stlouisfed.org/in-plain-english/history-and-purpose-of-the-fed
I have to give them credit, at least they put it in English we can
all understand, but there's still no missing the BS.
I quote from their web site: "Before the Federal Reserve was
founded, the nation was plagued with financial crises. At times,
these crises led to "panics" in which people raced to their banks to
withdraw their deposits. The failure of one bank often had a domino
effect, in which customers of other banks rushed to withdraw funds
from their own banks even if those banks were not in danger of
failing. Banks needed a source of emergency reserves to prevent the
panics and resulting runs from driving them out of business.
What led to the creation of the Federal Reserve? A particularly
severe panic in 1907 resulted in bank runs that wreaked havoc on the
fragile banking system and ultimately led Congress in 1913 to write
the Federal Reserve Act. The Federal Reserve System was initially
created to address these banking panics. It is now charged with
several broader responsibilities, including fostering a sound
banking system and a healthy economy."
And there's pages and pages of this stuff with them patting
themselves on the back, telling us what a noble purpose they have
and how the stability of the economy is impossible without them.
Well, if Federal Reserve is doing such a great job, why has the
dollar lost 90% of it's value, and why did we have bank bailouts in
2008? And why have we created trillions of dollars in the last
couple of years, and why are we having huge inflation and a
recession right now? And why are the BRICS nations working to get
rid of the dollar as the reserve currency? Seems to me they're
not doing such a great job, are they?
If you look at what's really happened over the years. Banks
are responsible for all the economic woes. Even the panic of
1907 was a result of speculative investments and crooked bankers and
the constant drive for more and more money. The appetite is
insatiable. And there we were again in 2008. And here we
are now. Back then no Federal Reserve, now a Federal Reserve.
There is an outright lie there also. Congress did not write
the Federal Reserve Act. A bunch of bankers, caught with their
industry pants down, decided they better put together a proposal, or
Congress would regulate them. That was written in 1910 and it
actually took them three years to finally get the leverage and to
convince someone to sponsor the bill. And it was made law
during the Christmas Holiday when most politicians weren't even
present.
What's the end result? Even though Congress has the Constitutional
right to print money without going through a bank. The Act
gives the Federal Reserve (a bunch of private bankers) exclusive
rights to print money and control the money supply. And when
the government needs money, they borrow it from the Fed, at
interest, and we the citizens get to pay the interest on those loans
in the form of taxes, and inflation (just another form of
tax). Worse yet, it's a smoke and mirrors game because the
Federal Reserve doesn't really have any reserves (ok tehnically
10%). And the Act instituted fractional reserve banking as the
mode of operation, meaning banks are allowed to loan out money at
nine times what they actually have.
Back in the days when money was gold, banks did the same
thing. When someone deposited their gold with the bank, the
bank gave them a certificate of deposit. Which was easier than
carrying gold, so people just started trading gold
certificates. The problem was banks figured out that at any
time, only a fraction of depositors actually asked for their gold,
so they started writing up more certificates than they had gold to
cover, and they put those into circulation. Fractional reserve
banking, except back then it was illegal. Because what happened if
everyone wanted their gold... ooops! So the Federal Reserve Act
actually made a previously illegal practice legal! Bank runs
aren't a problem if the banks actually have the money that they say
they do.
But we're not even on the gold standard any more. It's all
just paper. The "reserve" is paper, the loans are paper, just
numbers floating around, and we all pay interest on it, making the
bankers richer and richer with our labor.
We pay taxes because government needs money, but if they can't print
their own money, where else are they going to get it from but us? It
started during WWI, we had to finance the war, so there was a 5%
voluntary income tax. It was supposed to be temporary, but
when is giving government money ever temporary? Prior to that,
government was so small that they basically ran off fees and
tariffs. But there just wasn't enough money to finance the
war. So "temporary" taxes.
That's not the first time that happened. During the civil
war Lincoln didn't have the money either, but he was smart, he
did print money (paper just like now) without help from the
banks. That money was still in circulation through the 1990's
when the Central Bank (Federal Reserve) took it out of circulation.
But it was money, without interest! Of course Lincoln was
assassinated, and it seems that the bankers of the time were behind
it, because they couldn't allow him to continue doing that.
Prior to him, Jefferson ran for president just to get rid of the
Central Bank, and there was an assassination attempt made on his
life. But he did eventually kill the Central Bank and we
didn't have one for 70+ years. And it wasn't the first time we
got rid of the Central Bank. But of course it didn't last,
because the bankers don't give up. They just keep getting
richer and richer and bribing more and more politicians to get what
they want.
What we now call the economic cycle, easy money, tight money,
expansion, contraction, is just another way for banks to take what
we have. When they make money easy to get, low interest,
people take out lots of loans and price of goods goes up so our
buying power goes down (inflation; a tax), then when they tighten
money, and we end up in recession, people go broke and since the
banks own everything, they get those assets for pennies on the
dollar. I can't imagine how much of that happened during the
COVID years. Huge wealth transfer.
Central Banks are the problem. And we don't need them.
Lincoln's experiment was proof on a large scale that we don't need
them. Why should they be able to make money on nothing, make
loans of money they don't have? If you and I did that it would
be fraud.
There is no good reason that Congress should not take over the money
printing and supply, given that a couple things be put in place.
One. The money supply should be tied to the population growth
and/or some minimum. For example, 1-3% increase per year,
which is set and can not be changed, except by an act of
Congress. Then those making the monetary policy are
accountable to the people. If population growth is high, then
we match the population growth.
Two. Banks should not operate on a fractional reserve
system. Loans must be fully backed, 100% reserve. Then there
is no such thing as a panic bank run. The money is always
there.
By doing this, all government debt would be wiped out, and easy
money, the boom bust cycle would stop, taxes could be reduced or
eliminated, and banks wouldn't have the power over our lives they
have now.
There is another problem. Government has a money addiction,
and they're war mongers, which are self reinforcing. But
that's how the banks like it; financing both sides of a war is good
business! All illustrated by the fact that the US, with NATO,
pressured Russia for years by trying to make Ukraine a Western ally,
when Putin insisted they stay neutral. But anyway, $60 billion
gone just like that, and let's not even talk about the $1.3 trillion
budget that was passed before that. Could we trust Congress to
not print money like it's going out of style and cause another total
devaluation?
Well, I think Congress controlling the money supply is the lessor of
two evils, and the prospect of eliminating the government debt and
reducing out taxes makes it a much lesser evil.
The alternative is where it's going now... CBDC (Central Bank
Digital Currency), which is just a higher level of control and will
end with some kind of Universal Basic Income, but you have to spend
it, or it will expire. Get enough people on that and you
basically guarantee that people will not be able to build any kind
of wealth, ever. Living from check to check will have a whole
new meaning, because now it's not even a check you earn, but one the
government gives you, and what the government gives they can take
away.
There's also this side issue that we should go back to gold backed
or silver backed money. BRICS nations plan to have a commodity
backed money. Maybe to be on level ground we can make the
dollar gold backed, but really gold is being manipulated now, and
the bankers actually like the gold standard for that reason; they
can manipulate the market. Fiat currencies have been used for
a long time. As long as there are rules in place that regulate
it, paper money is perfectly acceptable. It's the Central
Banks, manipulating the money supply and profiting of the booms and
busts that's the problem; making up the rules as they go along, and
answerable to no one.
What's the promise of Bitcoin? That it's controlled by the
people, requiring a majority to make any changes, and the rules are
hard coded otherwise. We don't need Bitcoin to have those two
things.
So, write your congressman, your rep, and tell them you're sick and
tired of the NON-Federal NO-Reserve, private bankers making a
killing of everyone directly, via the government debt, and making
interest on money they don't actually have. We need to pick up
where Lincoln left off; go back to the greenbacks, interest free
money, issued by Congress, and we need to end fractional reserve
banking. This will also have the added benefit of discouraging
war mongering, because government won't have to money to do it.
If you have a better idea, what is it? Clearly the existing
system continues to siphon money from the middle and lower class,
making bankers richer and richer, and we're now at the point of the
US dollar failing. And all they can come up with is CBDC,
which will solve nothing, and still leaves the same bankers in
power, with even more power, which is what they want. The
power needs to go back to the representatives of the people.
Disband the Federal Reserve and then withdraw from activities in
other Central Banks, World Bank and BIS.
If you want to learn more, take a few hours and watch this video:
https://www.bitchute.com/video/jEt8forjCvZN/
Made in 1996, but even more applicable today, because the dollar
really is about to collapse.