One of the most important steps that we could take to bring prosperity back to America would be to nationalize the Federal Reserve. Doing so would allow the federal government to quit borrowing money, dramatically reduce taxes and eventually pay off the entire U.S. national debt. Instead of inheriting the largest debt in the history of the world, future generations would actually have a chance at economic prosperity because they would not be forced to pay off the horrific debt of previous generations. The Federal Reserve is a perpetual debt machine, it has almost completely destroyed the value of the U.S. dollar and it has an absolutely nightmarish track record of incompetence. There are no good reasons to keep the status quo. Our current debt-based monetary system will inevitably lead to a complete and total economic collapse. We desperately need to make a change while we still can. As you will see below, there are a ton of good reasons why we should nationalize the Federal Reserve.
Right now, most Americans believe that the Federal Reserve is actually an agency of the federal government. But that is simply not the case. The truth is that the Federal Reserve is about as "federal" as Federal Express is.
The Federal Reserve openly admits as much. For example, in defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated in court that it was "not an agency" of the U.S. government and therefore not subject to the Freedom of Information Act.
So who owns the Federal Reserve?
As the Federal Reserve's own website describes, it is the member banks that own it....
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.
The debt-based monetary system established by the Federal Reserve has greatly enriched the big banks and the people that own them. This has been at the expense of the American people.
A private central bank should not issue our currency, set interest rates and run our economy. Rather, we need to return control over the currency to the American people where it belongs.
The following are 14 reasons why we should nationalize the Federal Reserve....
#1 The U.S. Constitution says that the federal government is the one that should be issuing our money.
In particular, according to Article I, Section 8 of the U.S. Constitution, it is the U.S. Congress that has been given the responsibility to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures".
#2 Our current debt-based monetary system is a perpetual debt machine. It is absolutely imperative that we nationalize the Federal Reserve and begin to issue debt-free money.
In a previous article about money and debt, I explained how more government debt is created whenever the U.S. government puts more money into circulation....
When the government wants more money, the U.S. government swaps U.S. Treasury bonds for "Federal Reserve notes", thus creating more government debt. Usually the money isn't even printed up - most of the time it is just electronically credited to the government. The Federal Reserve creates these "Federal Reserve notes" out of thin air. These Federal Reserve notes are backed by nothing and have no intrinsic value of their own.
This process creates a huge problem. When each new dollar is created, the interest owed by the federal government on that new dollar is not also created at the same time.
Therefore, more debt is actually created than the amount of money that the federal government receives from the Federal Reserve.
This is a Ponzi scheme that is designed to drain wealth from the American people and transfer it to the banking system.
This is why I call the Federal Reserve system a perpetual debt machine. Today, the U.S. national debt is more than 5,000 times larger than it was 100 years ago.
Back in 1910, prior to the passage of the Federal Reserve Act, the national debt was only about $2.6 billion.
By going to a system of debt-free money, the U.S. government would never have to borrow a single dollar ever again.
#3 Our current debt-based monetary system requires very high personal income taxes to pay for it. It is no accident that the personal income tax was introduced at about the same time that the Federal Reserve system came into existence.
If we nationalized the Federal Reserve and capped federal government spending at a reasonable percentage of GDP, it would be entirely possible to massively cut taxes and still keep our promises regarding Social Security and other important social programs at the same time.
I believe that eventually the entire personal income tax system could be completely wiped out and the IRS could be totally shut down. This would save our economy billions upon billions of dollars in income tax compliance costs.
However, as an initial first step, I believe that we should eliminate all payroll taxes, all "self-employment taxes" and all taxes on the first $100,000 earned by every American.
This would provide much needed relief to the millions of poor and middle income families that have been hurt so badly by this economic downturn.
Also, I believe that we could instantly reduce the corporate tax rate to levels that would be competitive with the rest of the world, while closing corporate tax loopholes at the same time. This would remove the temptation for companies to leave the United States in order to escape our brutally high corporate tax rates.
Yes, the proposals above would definitely cut taxes.
So where would we make up the difference?
Well, the U.S. Constitution provides one clue. According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress has the right to impose "duties, imposts and excises" on goods sold in this country.
For way too long, big corporations have been taking advantage of sweatshops in the third world. For way too long, other nations have used predatory trade practices to take unfair advantage of us. For way too long, we have allowed nations with horrific human rights records to ship their goods into our country for free.
Well, we need to bring that to an end. By raising tariffs we would raise money for the federal government and we could potentially start to reverse the flow of jobs and businesses that have been leaving this country.
Access to the U.S. market is a privilege, not a right. High tariffs would be imposed on goods from any country that allows slave labor wages to be paid. Very high tariffs would be imposed on goods from any country that is using predatory trade practices against us. Extremely high tariffs would be imposed on any nation that does not respect basic human rights.
However, please keep in mind that none of this would work if we did not nationalize the Federal Reserve. The tax cuts proposed above would be suicidal under our current debt-based monetary system. But if we nationalize the Fed, we really could do this. It may sound crazy, but it really would work.
#4 If we nationalize the Federal Reserve, there would be no more budget deficits. If the federal government was a bit short one year, it would just print up a little bit of extra money in order to make up the difference.
It would also be very important to cap federal government spending as a percentage of GDP so that we don't have crazy Congress critters creating a lot of inflation by spending us into oblivion.
Just because we would be adopting a debt-free monetary system does not mean that we could throw spending discipline out the window. Rather, it would actually become more important than ever.
#5 If we nationalize the Federal Reserve, we would instantly reduce the national debt by 1.6 trillion dollars. That is the amount that is currently on the balance sheet of the Federal Reserve. The Federal Reserve just created this money out of thin air anyway, so it was never their money to begin with. Some members of Congress have already proposed cancelling the debt held by the Federal Reserve, and it is a great idea.
#6 If we nationalize the Federal Reserve, we could eventually get rid of the entire national debt.
Under our current system, the U.S. national debt will never, ever be paid off. We are 15 trillion dollars in debt, and at this point we add more than a trillion dollars to that number every year.
As I have written about previously, if the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
But under our current system we are not paying it off. Rather we keep piling up more debt at an astounding pace.
In a system of debt-free money, there would be no more budget deficits, and we could actually start slowly paying off the national debt with newly issued "United States money".
This would have to be done very slowly so as to not shock the financial system, but it could be done. As U.S. debt becomes due, a small percentage of it could be retired each year.
It is entirely conceivable that within 30 to 40 years we could pay it off entirely without causing tremendous damage to the financial system.
#7 If we nationalize the Federal Reserve, we will eventually totally eliminate the interest on the national debt. Most Americans don't understand this, but each year we spend hundreds of billions of dollars just on interest on the national debt. For example, the U.S. government spent over 454 billion dollars on interest on the national debt during fiscal year 2011.
Under a debt-free monetary system, that number would eventually go to zero. That would save the federal government a ton of money.
#8 While there is certainly a danger that we would have inflation under a debt-free monetary system, the reality is that we are absolutely guaranteed inflation under the Federal Reserve system.
Most Americans believe that inflation is a fact of life, but the sad truth is that the United States has only had a major, ongoing problem with inflation since the Federal Reserve was created back in 1913.
If you do not believe this, just check out this chart.
Sadly, the U.S. dollar has lost well over 95 percent of its value since the Federal Reserve was created.
So, yes, there would be a need for monetary discipline under a debt-free monetary system, but it would be hard to do worse than the Federal Reserve has already been doing.
#9 If we nationalize the Federal Reserve, we would eliminate all of the financial bubbles that the Federal Reserve has been creating.
For example, there would not have been such a bad housing crash if the Federal Reserve had not created such perfect conditions for a housing bubble in the first place.
We should eliminate the Federal Reserve and allow the market to set interest rates. Having a central authority that sets interest rates is just simply wrong and it creates all sorts of problems.
#10 The Federal Reserve has not been doing a good job.
In case anyone has not noticed, Federal Reserve Chairman Ben Bernanke has a very long track record of incompetence. Nearly every major judgment that he has made since taking over that position has been dead wrong.
We are always told that we need someone to run the economy and that the Fed is there to keep depressions from happening.
Well, the truth is that the Fed actually greatly contributed to the Great Depression and it was at least partly responsible for the financial crash of 2008.
Now we are right on the verge of yet another massive financial implosion.
If someone keeps wrecking your car, you don't let them keep driving it, do you?
#11 If we nationalize the Federal Reserve, we could potentially transition to "sound money" at some point.
There is great debate about this of course. But it is a debate that we need to have.
But before we go to "hard money" we need to do something about this horrific debt that we have piled up for future generations first. We simply cannot lock this debt in and expect them to pay for our mistakes.
We made this mess, so we need to clean it up.
Going to a debt-free monetary system would allow us to do that.
#12 If we nationalize the Federal Reserve, our local banks will have much more freedom. Most Americans simply do not understand just how much power the Federal Reserve actually has over our local banks.
For example, just last year Federal Reserve officials walked into one bank in Oklahoma and demanded that they take down all the Bible verses and all the Christmas buttons that the bank had been displaying.
#13 If we nationalize the Federal Reserve, we won't have trillions of dollars of secret loans being made to big financial institutions on Wall Street and in foreign countries.
Most Americans don't realize this, but the Federal Reserve made $16.1 trillion in secret loans to their friends during the last financial crisis.
Meanwhile, hundreds of small banks were left out in the cold and the American people got no help.
This is rampant corruption and it needs to be stopped.
#14 The Federal Reserve needs to be nationalized because it is an unelected, unaccountable "fourth branch of government" that has gotten completely and totally out of control. Even some members of Congress are now openly complaining about how much power the Fed has. For example, Ron Paul told MSNBC last year that he believes that the Federal Reserve is now more powerful than Congress.....
"The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress."
To learn much more about the Federal Reserve and how it is destroying prosperity in America, there is a great animated documentary on YouTube entitled "The American Dream" that you can watch right here.
It is absolutely imperative that the American people get educated about the Federal Reserve and about why a debt-based monetary system is bad for us.
In 1922, Henry Ford wrote the following....
"The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present system which put nations and peoples under control of the few."
The U.S. government does not need to go into debt to anyone.
The U.S. government is a sovereign nation.
So why in the world are we 15 trillion dollars in debt?
We have allowed ourselves to become willingly enslaved.
In the book of Proverbs, it tells us the following....
The rich ruleth over the poor, and the borrower is servant to the lender.
By allowing ourselves to become enslaved to debt, we have become the servants of the international banking system.
Our founding fathers attempted to warn us about this.
For example, Thomas Jefferson strongly believed that when the federal government borrows money in one generation which must be paid back by future generations it is equivalent to stealing....
And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
Not only that, Thomas Jefferson also once stated that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing....
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.
If we had implemented that advice, how much better off would we be today?
We can still do this.
We can take back control of our financial system.
We can nationalize the Federal Reserve.
We can dramatically cut taxes and eventually shut down the IRS.
We can give our children and grandchildren a future that is debt free.
We can escape the tyranny of the international bankers.
The choice, America, is up to you.
Fed must be finished
Japan in WWII: A Casualty of Usury?
Was WWII Fought to make the World Safe for the Bankers?
http://www.veteranstoday.com/2011/06/26/was-world-war-ii-fought-to-make-the-world-safe-for-usury/
Hitler and the Banksters: The Abolition of Interest-Servitude
http://www.veteranstoday.com/2011/09/13/hitler-and-the-banksters-the-abolition-of-interest-servitude/
I think every war has been about the money and lenders have proviked many of them, including our revolution and our civil war. It’s in the “Money Masters” video by Bill Still on Youtube. Everyone should watch it to learn the truth about our money and how the lenders control govenments this way.
By ” nationalize” I presume you mean “destroy”… There’s nothing like a pile of smoking ruins strewn with dead banksters to assuage public wrath. It’s the only way…
I would like to recommend a DVD titled AGENDA Grinding America Down. The trailer is worth a look. http://www.AgendaDocumentary.com If nothing else you would understand who are some of the organizations behind Obama.
[...] bank does not mean that there are not alternatives to the Federal Reserve system. I detailed a plan the other day that would transition us away from the Federal Reserve [...]
Sure, Ben. We must all be crazy to even think that you and the lenders are stealing our Wealth by charging the US interest to create our money supply ever since 1913.
I wonder if the lenders have twisted your arm as you make these statements?
Me thinks lenders don’t like hearing us complain and threaten to send them packing…
REQUEST FOR HELP PLEASE:
Can someone please give me information regarding the exact amount of money it would take to “buy out” the Federal Reserve as noted in the official Government transcripts.
I need facts and links please, not guesses or opinions.
I need this immedialtey please.
Thanks
Loyal Citizen
Zero.
We should just put the owners in jail for defrauding the American taxpayers with debt-based money since “the Fed” was formed in 1913.
That makes many trillions they owe us plus the triple penalty that justice should add to the total.
The members of Congress who have supported this corruption should also be imprisoned.
I’ll admit I only made it through the first two points – this is silly. Just as one example, the reason the Fed pays interest on debt it issues is because suppliers of capital (ie lenders) need to be compensated for the use of their capital. Think about it – would you lend your money to a government, company, etc for free? Why would you take that risk if there is no benefit? To suggest that the Federal government could convince investors to lend it capital without paying interest is not realistic.
Yes, but who created the ‘lenders’. Its the same group. They have been doing for nearly 100 years. Where do you think the lenders got all their money? Their wealth? From the sky?
Its created for them from the US people until future generations.
What a naivety!
Congress has 18 duties under the Constitution – coining money (free coinage ) is one as is granting Letters of Marque and Reprisal for acts of war or piracy.
Under the Surpremacy Clause Congress can make law on most anything, observing of course the ‘handcuffs’ of the Bill of Rights. However Congress may obligate the Country foe one year except concerning the Army it is two years.
A national bank is not a duty named for Congress so the contract sold by a rogue Congress that returned during Christmas break in 1913 to do a lot of damage, it is a power not delegated and exceeds the $20 value given in the Constitution so it needs passed every year because it obligates the US.
Same with retirements – the labor ‘cost’ needs to occur in the year the labor is rendered. The only Constitutional way to provide a retirement is to buy an annuity.
There is no prohibition on public debt but I think the first thing to cut should be the Representatives pay – by one half when they report out an expenditure that causes debt. One bill should cover one agency.
Congress shall lay AND collect taxes not delegate collection to another branch unless they admit failure to do their duty.
The original contract was for 144 million if the information was correct in civics class in 1961.
There should be no buyout because of the limit on Congress obligating the Country as that would be for one year and repeating the payment would display the limit.
OT : one of the best ways to recover the government would be to limit the paychecks to 12 years for all to prevent ‘empire building’ within the agency and departments.
We need to reinstate the gold backing that the federal reserve system initially had in place before the European Banking Cartel infiltrated it in the 1920s. Here is another interesting tid bit. The kidnapping of the Lindbergh baby was linked to the European Banking Cartel taking over the Federal Reserve. The childs grandfather Charles Lindbergh Sr. was a congressman and hold out, he was not in favor of the European Banking Cartel taking over our Federal Reserve System and was a thorn in their side. He fought tirelessly to maintain The US Govt’s sovereign status and battled the Money Trust. Surprise surprise, his grandson winds up kidnapped and murdered. The father of the child Charles Lindbergh Jr. wound up leaving the country and becoming a Nazi sympathizer. Start digging into the real history of what happened.
“Lindbergh found secret collusion between Southern and English bankers at the time of the Civil War, citing proofs in his 1913 book, Banking and Currency and the Money Trust. He published there the text of the 1862 “Hazard Circular,” which revealed how labor would henceforth be controlled by the amount of currency the bankers permitted in the market, since chattel slavery would be abolished by the war.”
http://www.thefreelibrary.com/The+other+Charles+Lindbergh%3a+the+father+of+the+famous+aviator%2c+like…-a099164941
The European Banking Cartel (headed by The Black Nobility) infiltrating our Federal Reserve in the 1920′s was basically so they could control the flow of money and essentially keep us in a perpetual state of slavery. Before they infiltrated The Federal Reserve System, The US was not only a very strong country but she was also debt free and neutral. They should teach real history in school, it is so much more interesting than the stuff they’ve made up.
Yea thats what we need nationalize Federal Reserve that way instead of borrowing money these idiots we elect can print it off that way they don’t have to pay the money back who wrote this Obama.
Knock it off with the Obama blame for the Federal Reserve, people. He wasn’t even BORN yet.
Remember that a lot of the garbage we’re dealing with now had its roots in the Clinton administration, and after that, Bush II for two soul-sucking terms.
The Obama blame here needs to stop – you people chase more red herrings than Congress does.
This is a great and viable plan. I thank God that there still exist honest and intelligent thinkers in this country who have the brains to propose a way out of this quagmire we’re in. But that said, I have NO hope in the American people if the latest political polls are anywhere near correct: a large portion of America is ready to vote for some former pizza czar who happens to have direct ties with the Federal Reserve: Herman Cain. Can you imagine the Fed putting in their own chosen one into the position of US President? ***************, we’re there. The public idiocracy is ready to vote him in, while the candidate who proposes to actually END the Fed, Ron Paul, is blown off by the mainstream media and brushed off by the average voter as “unelectable” . Yep, we’re screwed, America. Assume the position, morons.
Re-connecting money to democratic control, backing money with real goods and services, and issuing money for community and national revitalization, can be achieved by creating credits outside the dollar and Federal Reserve system. ‘Labor: the New Gold Standard”
When I was not so young but still naive I fantasized about the equal distribution of wealth among all the world’s citizens. It was a harmless daydream really. But one day a realization came upon me that has forever squelched this fantasy for me; those that have the wealth and power now will in time take it all back again. These heartless, selfish, conniving, swindling bastards want just one thing – they want it all. They have always been a part of humanity and they always will be.
To forstall any comments associating the phrase “equal distribution of wealth” with “communism” or “socialism” let us stress that a more “equal” financial playing field would by definition redistribute the wealth and economic power more fairly without being either of the latter. Rock on Captain Rob.
Captain Rob
November 27th, 2011 at 2:41 am, made a fine observation in line my previous post, which I will re-post here so no one has to search for it.
“Jeffrey Conner
November 7th, 2011 at 8:49 pm · Reply
Here’s a question for everyone. Have any of you ever played or witnessed a game of Monopoly that didn’t eventually produce a winner? When someone wins at Monopoly the next step is for the winner to put all the deeds and money he or she has horded back into the common pile so that another game can start. The World we live in is no different than the game because the wealth and resources of the planet are FINITE. The problem we face is that those who control the most wealth don’t yet realize that they are only wealthy when “compared” to those who are not. If the middle class ceases to exist the whole system fails because poor “players” are already out of the game. If you don’t have a dollar to spend you aren’t important to the game anymore, and the whole game suffers a reduction in the flow of commerce. That’s bad for the global economy. We are in need of a paradigm shift concerning the nature of global commerce and trade. If sixty percent of the worlds population in “all” economies are poor. What would happen if they had paying jobs and a way to improve thier lives. Suddenly the world economy would experience huge surge of cash flow as these forgotten folks begin spending. It would be similar to putting a turbo charger on a car engine. The Rich would be happy because there would then be more things for them to “own”, and the poor would eat and have roof over their heads. Does this “not” make sense to anyone out there?
You are right on the mark Captain Rob. Unfortunately I to say that I too cannot see a way out of our dilemma that doesn’t involve a nasty “revolution”. Including all that the word implies.
[...] Are you starting to understand why I keep pushing the idea that it is time to shut down the Federal Reserve? [...]
[...] never been created, the U.S. economy would be in far better shape. The federal government needs to shut down the Federal Reserve and start issuing currency that is not debt-based. That would be a very significant step toward [...]
This column should have discussion of HR 2990, the NEED Act, which proposes issuance of U.S. Money, backed by the full, faith and credit of the United States (not FRN’s), make the Fed an agent of the Treasury, and prohibit fractional reserve banking.
Money issuance must have a direct relationship to energy in a system. The energy may include petroleum, natural gas, solar, and nuclear energy inputs, as well as growing crops. Even Rep. Ron Paul calls for a link between the dollar and a basket that includes gold, oil, and food commodities. Every dollar is a claim on future energy expenditures, be it an hour of labor or a kilocalorie of burning petrol.
Historically, currency as a function of prescribed masses of gold or silver serves the purpose of establishment of a floor for commodities, particularly foodstuffs. Thus, the perception of currency as a mass of gold or silver is misplaced.
Money does not exist in nature, but by human-made law. When banisters make the money and laws, the rest of us suffer. When the people control the issuance and distribution of money, things work. Just as manure piled up in one place stinks, manure spread properly across acres of farms helps many crops grow.
Change the way money works, or nothing will change.
“Banksters”, not “banisters”
charge the federal reserve bank , with crimes against the people. unlawfully collecting taxes of the the people( taxing labor, where they should only be taxing the corp.) how many people have they destroyed , put out into the streets, taken their properties ( farms, housing and freedom.). arrest them take all that they have. put them into the streets. confiscate all that have from committing crime. (drug dealers lose everything house ,money,cars and so on. for committing crimes).
take them over, just as they have taken over the good old u.s.a
The Federal Reserve was created as a monopoly cabal of banks by a compromised Congress. Congress needed unlimited funds in order to finance wars to enhance their corporate war industry. The clandestine, unholy alliance between the Fed and Congress is a corrupt system for war profiteering.
If the Congress cannot get instant credit form foreign banksters, but must rely upon taxes to support wars, then wars would stop, or be much less likely to occur. That would break the cookie jar for the Congress.
Congress will never repeal the Federal Reserve Act. The people could through referendum or Constitutional Amendment.