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19 Reasons Why The Federal Reserve Is At The Heart Of Our Economic Problems

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Most Americans do not understand what the Federal Reserve is or why it is at the heart of our economic problems.  When Americans get into discussions about the economy, most of them still blame either the Democrats or the Republicans for inflation, for the housing crash, for our rampant unemployment and for the national debt.  But the truth is that the institution with the most power over our economic system is the Federal Reserve.  So exactly what is the Federal Reserve?  Most people would say that it is an agency of the federal government.  But that is absolutely not true.  In fact, the Federal Reserve itself has argued in court that it is not an agency of the federal government.  Rather, the Federal Reserve is a privately-owned banking cartel that has been given a perpetual monopoly over our monetary system by the U.S. Congress.  This privately-owned central bank has been destroying the value of the U.S. dollar for decades, it has run our economy into the ground and it has driven the U.S. government to the brink of bankruptcy.  The Federal Reserve operates in great secrecy, it has never been subjected to a comprehensive audit and it is not accountable to the American people.  Yet the decisions that the Federal Reserve makes have a dramatic impact on the lives of every single American citizen.

If you really want to understand what is causing our economic problems, it is absolutely crucial that you understand exactly what the Federal Reserve system is and how it is systematically destroying our economy.  Once you understand the truth about the Federal Reserve, you will view economic issues a whole lot differently.

The following are 19 reasons why the Federal Reserve is at the very heart of our economic problems….

#1 The Federal Reserve system is a debt-based financial system.

The way our system is designed, normally no money comes into existence without more debt being created.

But this creates a huge problem, because when a new dollar is created, the interest owed to the banking system on that dollar is not also created at the same time.

Therefore, the amount money that is created is not equal to the larger amount of debt that is also created.

This is a Ponzi scheme that is designed to drain wealth from the American people and transfer it to the banking system.

Today, the amount of debt in our economic system is far, far, far greater than the total amount of money.

The only way to keep the game going is to create even more money which creates even more debt.

#2 The Federal Reserve and the bankers have a monopoly on the creation of this debt-based money.

In the United States today, the only people that can create money are the bankers.

You cannot create money.

You would go to jail if you tried.

Even the U.S. government cannot create money.

Although the U.S. Constitution specifically gives Congress the power to create money, the U.S. Congress has given that power to the Federal Reserve and to the banking system.

This gives them an enormous amount of power.

So how does money creation actually work?

Most Americans don’t understand this.

As I have written about previously, the way our system is designed is that all money is supposed to originally come into existence as government debt….

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.

The Federal Reserve then sells these U.S. Treasury bonds to investors, other nations (such as China) or sometimes they “sell” them back to themselves.  In fact, the Federal Reserve has been gobbling up a whole lot of U.S. Treasuries lately.  Some refer to this as “monetizing the debt”, but that is not quite an accurate statement.

When the Federal Reserve creates money this way, it does not also create the money to pay the interest on the debt that has been created.  Eventually this puts pressure on the U.S. government to borrow even more money to keep the game going.  So what this creates is a spiral where the U.S. government must keep borrowing increasingly larger amounts of money, where the money supply is endlessly expanding and where the value of the U.S. dollar is destined to continue going down forever.

Once “Federal Reserve Notes” are in circulation, there is another way that money is created.

It is called “fractional reserve lending”.

Once you or I deposit money into a bank, the bank is only required to keep a very small amount of it actually in the bank.  The rest of it the bank can loan out to others (at interest of course).  This process can be repeated over and over and over, creating more money and an even larger amount of debt.

But the important part to take away from all this is that normally money is only created when debt is created, and the amount of debt to be paid back is always larger than the amount of money created.

This entire system is designed to drain our wealth and to put it into the hands of the bankers.

#3 The power of money creation and debt creation is in the hands of private individuals – not the government.

The Federal Reserve claims that it is an “entity within the government, having both public purposes and private aspects.”

That sounds so reasonable, but the truth is that the Federal Reserve is a legalized banking cartel that is privately-owned.

In fact, the Federal Reserve is about as “federal” as Federal Express is.

In defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve objected by declaring that it was “not an agency” of the U.S. government and therefore it was not subject to the Freedom of Information Act.  It is kind of funny how Fed officials are always talking about how important their “independence” is, but whenever anyone starts criticizing them for being private they start stressing their ties with the government.

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.

In particular, as we will see below, the banks of the New York Federal Reserve have the most influence over the system.

So who owns the member banks?

Well, when you trace the ownership of the member banks to the very top you find that the international banking elite are very strongly represented.

#4 The Federal Reserve itself is not much of a profit-making institution.  Rather, it is a tool that enables others to make obscene amounts of money.

There are many that think of the Federal Reserve as an evil profit-making machine.  But the truth is that the Fed doesn’t make that much money.  Rather, the system was set up so that others could make an obscene amount of money from U.S. government debt.

Many of those opposed to the Federal Reserve point to the record $80.9 billion in profits that the Federal Reserve made last year as evidence that they are robbing the American people blind.  But then those defending the Federal Reserve will point out that the Fed returned $78.4 billion to the U.S. Treasury.

In the end, those numbers are not nearly as important as the hundreds of billions of dollars in interest that are made off of U.S. government debt each year.

If the U.S. government had been issuing debt-free money all this time, the U.S. government would likely not be spending one penny on interest payments.  Instead, the U.S. government spent over 413 billion dollars on interest on the national debt during fiscal 2010.  This is money that belonged to U.S. taxpayers that was transferred to the U.S. government which in turn was transferred to wealthy international bankers and other foreign governments.

This is where the magic of the Federal Reserve system is.  It is in getting the U.S. government enslaved to debt and using that debt to transfer hundreds of billions of dollars of our wealth into the hands of others.

As interest rates go up, this phenomenon is going to become even more brutal.  Right now it is being projected that the U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.

As you fill out your tax return this year, just keep in mind that vast quantities of our money is going to pay interest on debt that the U.S. government never needed to become enslaved to.

There are some very happy people out there that are becoming fabulously wealthy at our expense.

What a system, eh?

#5 The Federal Reserve is a perpetual debt machine.

As mentioned above, the U.S. government is enslaved to debt.

So how did it get enslaved?

Well, instead of printing up and spending the money that it needs, the U.S. government borrows it through the Federal Reserve system at interest.

In fact, as noted above, the U.S. government cannot create a single new dollar without borrowing it.

But each new dollar that the U.S. government borrows creates more than a dollar of new debt.

As a result, the government eventually has to collect more in taxes than what it has borrowed.

This phenomenon creates an endless debt spiral.

And is that not what we have in the United States today?  In fact, you see this in almost every nation on earth where a similar central banking system has been established.

Did you know that the U.S. national debt is more than 5,000 times larger than it was 100 years ago?

That’s right – back in 1910, prior to the passage of the Federal Reserve Act, the national debt was only about $2.6 billion.

The only way that the U.S. government can inject more money into the economy is by going into more debt.  But when new government debt is created, the amount of money to pay the interest on that debt is not also created.  In this way, it was intended by the international bankers that U.S. government debt would expand indefinitely and the U.S. money supply would also expand indefinitely.  In the process, the international bankers would become insanely wealthy by lending money to the U.S. government.

However, things did not have to turn out this way.

If the Federal Reserve had never been created, and the U.S. government had been issuing debt-free currency all this time, it is entirely conceivable that we would have absolutely no federal government debt at this point.

Unfortunately, we are now trapped in a debt-based system.

The U.S. national debt simply cannot ever be paid off.  U.S. government debt has been mathematically designed to expand forever.  It is a trap from which there is no escape.

Sadly, we have now gotten to a terminal phase of the debt spiral.  The Congressional Budget Office is projecting that U.S. government debt held by the public will reach a staggering 716 percent of GDP by the year 2080.  Remember when I used the term “debt spiral” earlier?  This is what a debt spiral looks like….

#6 The Federal Reserve system is designed to cause inflation.

As U.S. government debt expands at an exponential pace, it inevitably causes inflation.

Most Americans believe that inflation is a fact of life, but the truth is that the United States has only had a major, ongoing problem with inflation since the Federal Reserve was created back in 1913.

Sadly, the U.S. dollar has lost well over 95 percent of its value since the Federal Reserve was created.

If the Federal Reserve did not exist, it is theoretically conceivable that we could have an economy with little to no inflation.  Of course that would greatly depend on the discipline of our government officials (which is not very great at this point), but the sad truth is that our current system is always going to produce inflation.  In fact, the Federal Reserve system was originally designed to be inflationary.  Just check out the inflation chart posted below.  The U.S. never had massive problems with inflation before the Fed was created, but now it is just wildly out of control….

#7 The Federal Reserve has decided to play bizarre games with our money supply.

In a desperate attempt to revive the dying U.S. economy, the Federal Reserve has resorted to chucking gigantic quantities of cash into the financial system.

Remember how earlier I explained that normally whenever new money is created that more debt is created?

Well, lately the Fed has been resorting to a trick called “quantitative easing”.  What “quantitative easing” means is that the Federal Reserve zaps massive amounts of money into existence out of thin air and starts spending it on anything that it wants to buy.  Lately, this has primarily been done to buy up U.S. government debt.

But isn’t that “monetizing the debt”?

Of course it is, and it is a blatant Ponzi scheme.

However, what is even more alarming is what this is doing to our money supply.

Just look at what has happened to our monetary base since about mid-2008….

Does anyone in their right mind believe that this is not going to cause horrible inflation?

Right now most of the new cash is tied up in the financial system, but once it gets out into the regular economy watch out!

#8 The Federal Reserve is undemocratic.

In a previous article, I asked the following question:

“So what makes the central economic planning that the Federal Reserve does different from the central economic planning that communist China does?”

In both cases, a bunch of unelected elitists run the economy and make important economic decisions for the rest of us.

So what really is the difference?

#9 The Federal Reserve runs the U.S. economy.

Most Americans want to blame Obama or Bush or the U.S. Congress for the state of the economy.

But the truth is that it is the Federal Reserve that sets interest rates, it is the Federal Reserve that determines the money supply, it is the Federal Reserve that sets the “target rate” of inflation, it is the Federal Reserve that determines if unemployment is too high or too low and it is the Federal Reserve that watches over all of our banks.

Yes, Obama, Bush and the U.S. Congress all have things to answer for as well.

But none of them have the direct power over the economy that the Federal Reserve does.

#10 The Federal Reserve favors the big banks.

Not all financial institutions are treated equally by the Fed.

The truth is that the big banks (particularly those on Wall Street) are treated with great favor by the Federal Reserve.

If the Federal Reserve did not exist, the big Wall Street banks would not have such an overwhelming advantage.  Most Americans simply have no idea that over the last several years the Federal Reserve has been giving gigantic piles of nearly interest-free money to the big Wall Street banks which they turned right around and started lending to the federal government at a much higher rate of return.  I don’t know about you, but if I was allowed to do that I could make a whole bunch of money very quickly.  In fact, it has come out that the Federal Reserve made over $9 trillion in overnight loans to major banks, large financial institutions and other “friends” during the financial crisis of 2008 and 2009.

Wouldn’t you like to be able to zap trillions of dollars into existence and loan it out to your friends at very favorable terms?

Sadly, most of the “help” from the Federal Reserve always seems to go to the big boys.

When “small enough to fail” banks need assistance, they are usually told to go sell themselves to one of the big banks.

#11 The worse the debt problems caused by the Federal Reserve become, the more money the IRS needs to collect from the rest of us.

If the U.S. government could issue debt-free money, it is conceivable that we would not even need the IRS.  You doubt this?  Well, the truth is that the United States did just fine for well over a hundred years without a national income tax.  But about the same time the Federal Reserve was created a national income tax was instituted as well.  The whole idea was that the wealth of the American people would be transferred to the U.S. government by force and then transferred into the hands of the ultra-wealthy in the form of interest payments.

If the Federal Reserve was shut down, it is entirely possible that we would be able to shut down the IRS as well.

But the only way that the current system works is if massive amounts of wealth continue to be drained from the American people.

#12 The Federal Reserve creates artificial financial bubbles.

When you look back over the last several decades, you will find financial bubble after financial bubble.

So who created all of those bubbles?

It was the Federal Reserve.

The ridiculous policies of Greenspan and Bernanke have wrought disaster after disaster and yet most of our politicians still will not even consider major changes to the Federal Reserve.

#13 The Federal Reserve is anti-free market.

In a true free market system, the marketplace would determine what interest rates are.

In a true free market system, the marketplace would determine which financial institutions survive.

In a true free market system, artificial financial bubbles would be far less likely.

But we don’t have a true free market system.

#14 The Federal Reserve tells the rest of the our banks what to do.

Most Americans don’t 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.

#15 The people currently running the Federal Reserve pretty much have no idea what they are doing.

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.

If one of us could go down the street and appoint the manager of the local Dairy Queen as the Chairman of the Federal Reserve, it is very doubtful that person would do a worse job than Bernanke has done.

#16 Even though the Federal Reserve has such extraordinary power over the financial system, the American people are not permitted to examine their books.

The Federal Reserve claims that they are regularly audited, but when some members of Congress attempted to push through a true comprehensive audit of the Fed last year Federal Reserve officials threw a hissy fit.

The truth is that the Federal Reserve has never undergone a true comprehensive audit since it was created back in 1913.

Whenever the subject of an audit comes up, Bernanke and others at the Fed keep repeating the mantra of how important “the independence of the Federal Reserve” is.

Sadly, Ron Paul’s proposal to audit the Federal Reserve last year, which had previously been co-sponsored by 320 members of the U.S. House of Representatives, ultimately failed by a vote of 229-198.

Instead, a very, very limited examination of Fed transactions that occurred during the recent financial crisis was approved.

So what did that limited examination reveal?

Well, the Federal Reserve was forced to reveal the details of 21,000 transactions stretching from December 2007 to July 2010 that combined were worth trillions of dollars.  It turns out that the Federal Reserve was just handing out gigantic piles of nearly interest-free cash to their friends at the largest banks, financial institutions and corporations all over the globe.

Many members of Congress were absolutely stunned by these revelations.

So what would a more comprehensive audit reveal?

#17 The Federal Reserve has way too much power.

If the Federal Reserve did not exist, we would not have an unelected, unaccountable “fourth branch of government” running around 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.”

#18 The Federal Reserve is dominated by Wall Street and the New York banks.

The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals.  The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary.  The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.

The cold, hard reality of the matter is that the Federal Reserve is just another one of the tools that the Wall Street banking elite use to dominate all the rest of us.

#19 The Federal Reserve has brought us to the brink of economic collapse.

If the Federal Reserve had never been created, the American people would not be so enslaved to debt.  At the very core of our economic problems is debt.  American consumers are swamped with debt, state and local governments are facing horrific debt problems from coast to coast and the federal government has piled up the biggest mountain of debt in the history of the world.

We are living in an absolutely massive debt bubble, and when it bursts the world is going to experience financial chaos like it has never seen before.

Things did not have to turn out this way.  We did not have to adopt a debt-based financial system.  We did not have to allow the bankers to enslave us with debt.

But that is what happened.

Sadly, most Americans and the vast majority of our politicians are still clueless about these issues.

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.”

Hopefully this article will help people understand our debt-based financial system a little bit better.

Until we fundamentally change our system, many of the economic and financial problems we are currently experiencing will never go away.

Thankfully, it does appear that some Americans are waking up.

According to a recent Bloomberg National Poll, the number of Americans that would like to see the Federal Reserve held more accountable or even completely abolished is increasing….

Asked if the central bank should be more accountable to Congress, left independent or abolished entirely, 39 percent said it should be held more accountable and 16 percent that it should be abolished. Only 37 percent favor the status quo.

Those are very exciting numbers.

Hopefully we can awaken many more Americans to the dangers of a debt-based economy.

In the book of Proverbs, it tells us the following….

The rich ruleth over the poor, and the borrower is servant to the lender.

Well, by allowing ourselves to become enslaved to debt, we have become the servants of the international banking system.

Not only that, we have also sold our children and our grandchildren into perpetual debt slavery.

Thomas Jefferson tried to warn us about this.

He believed that when the 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.

In fact, Thomas Jefferson said that if he could add 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.

Where would we be today if we had listened to Thomas Jefferson?

The amount of government debt that we have racked up is a great evil.  We have stolen the future away from our children and our grandchildren.  We have put them in a position where they will spend the rest of their lives paying off our debts to the bankers.

We owe it to future generations to fix the problems that we have created.

That is why so many of us believe that it is time for the U.S. Congress to shut down the Federal Reserve.  Our current financial system is a complete and utter failure and we need to start over.

  • From Porter Stansberry:

    If you tell the politicians they’re not allowed to borrow, they’ll inflate instead. Every argument you’ll hear against backing our currency with gold comes from bankers and swindlers who need the ability to be bailed out so they can make risky bets with enormous amounts of borrowed money.

  • rob

    ”  In fact, the Federal Reserve itself has argued in court that it is not an agency of the federal government. Rather, the Federal Reserve is a privately-owned banking cartel ”

    Who are those owners, they must be owning complete countries by now.

  • Lennie Pike

    Sounds diabolical.

    Where would the enemy find a better place to operate?

    What Henry Ford said about people needing to think more “naturally” about money hits the nail on the head. He was a mechanic – he could see it. If people could, they would see the Fed as PEOPLE!!! – not a government agency established for the good of us all – who control the events of the world (which are generally very violent and evil), and who create slaves working to pay them interest and taxes unnecessarily.

    But people can’t see the Federal Reserve for what it is because it is just to simple and obvious – kind of like the BIG W. Maybe the average person just can’t put their hands around the nature of this con because they are not devious enough to grasp it.

    As long as others will accept paper for payment, and work can be done to get it – it must be a good thing – the portion of that money that is being stolen can not be seen. They also just don’t understand how anyone could even think of a con like this or be low down enough to even consider implementing it. Also, the actions necessary to keep it operating can’t be understood by normal people who have at least some degree of love for one another and care about the well being of others.

    The average person hates war, and would not be willing to take up arms against strangers from a different land if they only knew the true reasons they were being sent to kill. The reasons in many instances have to do with these Bankers.

    The best definition I have come up with for what money is, is work. Money is work. Without work, money would not exist. Gold and silver is a great representation of money because it requires enough work to find it, find enough of it, and to get it into circulation that slaves and evil plans for their use can not be created by counterfeiters. It is our work that these counterfeiters want, and they have ancient and great (not good) plans that require it. When they have achieved their goal, your work will not be enough to satisfy them.

  • Lennie Pike

    ……..and in effect, the boss that they serve. Everybody’s got to serve somebody.

  • impeachRonPaul

    #5 Concerns me the most. The system needs debt to survive. That is one bubble I hope I do not live long enough to see pop.

    There is not really any attention paid to this issue. Good information Michael.

  • Richard

    Our Founding Fathers remember history far better than those who are currently in our government. Empires from Persia to Greece to Rome they all had the implicit view that one could simply create properity from valueless currency for which we have. God save the Republic.

  • “Too Big to Fail” by Andrew Ross Sorkin
    Early in the book it was stated that in agreement to the bailout funds that those responsible for the bank failures, would not loose in any way their financial status or be brought to justice. If we hear of any people brought to justice it will be a few scapegoats.


    your website is one of the first I try to read everday. I think I learned about it reading Lew Rockwell. Thank you for your incredible detailed research. It has has helped me get out of lala land economically.

    • Michael


      That is a tremendous compliment. It is very good to know that the things that I type into the keyboard end up being a blessing to others.

      One of the goals for these articles is that they get out to as many people as possible. The more eyeballs that see them the more good they will do.

      There are others that make great videos, that do great radio shows and that do a great job of organizing rallies. Hopefully be working together we can all make a difference.


  • How does a parasitic private monetary system like the Fed allowed to exist?

    Generation after generation, the Fed is preserved. Who within the U.S. has the kind of power and thereby benefits, that in turn allows this parasitic system to exist?

    Without creating any product or service, it nevertheless gets a cut from every single product and service produced.

    This parasitic system’s existence is truly baffling?

  • A.S.

    Thomas Jefferson was to right and passionate about being against any kind of central banking system, issuing any currency, especially notes (Federal Reserve Notes — paper US currency). He said:

    “The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”

    What he said will happen, did and is happening: inflation and recession at the same time, foreclosures, and an affront to the Constitution as a whole. The Federal Reserve is indeed one of the most evil organizations in the world that needs to be killed on the spot in order to guarantee the rights, liberties, and freedoms, that the Founding Fathers fought so hard (most likely in vain) to give us. Boot every Senator and Congressman that does not want to kill the Federal Reserve.

  • Debt is not the problem. The problem is the irreversable multiplication of debt BY INTEREST.

    All the while, all the principal and ‘interest’ this system inherently and irreversibly requires from circulation must be re-borrowed as yet a greater sum of debt… merely to maintain a vital circulation. Is this a prescription for perpetual prosperity? No intelligent society, in the entire history of the world, has designed such an instrument for its own service.

    The beginning of knowledge is the discovery of something we do not understand. Once you understand (MPE) you will see to support anything else is economic suicide!!

    The solution to your fate is in the playlist of our Youtube channel but will you listen?

    Youtube: chelonia1663

  • karen

    That is awesome work you’ve done there sir. I have know about the Federal Reserve for sometime, they sure are nothing but a bunch of crooks, but you know they are what most of the people are in the US greedy, if you really think about it, it’s the people whom have voted all this in so they can dip their fingers into the money pot too. The time of stength and courage seems to be lost to many in this country, most people just don’t give a hoot, reality is all but gone, it’s about what’s good for me.

  • Mel

    America has a choice to vote in Ron Paul and stop the Fed.. but majority will go along with the current establishment. American are too scared if they have no access to debt!

  • karen

    Have you ever wondered what happened to the 56 men who signed the Declaration of Independence?

    Five signers were captured by the British as traitors, and tortured before they died. Twelve had their homes ransacked and burned. Two lost their sons serving in the Revolutionary Army; another had two sons captured. Nine of the 56 fought and died from wounds or hardships of the Revolutionary War. They signed and they pledged their lives, their fortunes, and their sacred honor. What kind of men were they?

    Twenty-four were lawyers and jurists. Eleven were merchants, nine were farmers and large plantation owners; men of means, well educated. But they signed the Declaration of Independence knowing full well that the penalty would be death if they were captured.

    Carter Braxton of Virginia, a wealthy planter and trader, saw his ships swept from the seas by the British Navy. He sold his home and properties to pay his debts, and died in rags. Thomas McKeam was so hounded by the British that he was forced to move his family almost constantly. He served in the Congress without pay, and
    his family was kept in hiding. His possessions were taken from him, and poverty was his reward. Vandals or soldiers looted the properties of Dillery, Hall, Clymer, Walton, Gwinnett, Heyward, Ruttledge, and Middleton. At the battle of Yorktown, Thomas Nelson, Jr. noted that the British General Cornwallis had taken over the Nelson home for his headquarters. He quietly urged General George Washington to open fire. The home was destroyed, and Nelson died bankrupt. Francis Lewis had his home and properties destroyed. The enemy jailed his wife, and she died within a few months. John Hart was driven from his wife’s bedside as she was dying. Their 13 children fled for their lives. His fields and his gristmill were laid to waste. For more than a year he lived in forests and caves, returning home to find his wife dead and his children vanished. A few weeks later, he died from exhaustion and a broken heart. Norris and Livingston suffered similar fates. Such were the stories and sacrifices of the American Revolution. These were not wild-eyed, rabble-rousing ruffians. They were soft-spoken men of means and education. They had security, but they valued liberty more.

    Quotes from the Founding Fathers

    “Any people that would give up liberty for a little temporary safety deserves neither liberty nor safety.” Benjamin Franklin

    “… God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions, it is lethargy, the forerunner of death to the public liberty…. And what country can preserve its liberties, if its rulers are not warned from time to time, that this people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to the facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time, with the blood of patriots and tyrants. It is its natural manure.”

    Thomas Jefferson Papers, 334 (C.J. Boyd, Ed., 1950)

    “If we wish to be free, if we mean to preserve inviolate those inestimable privileges for which we have been so long contending, if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained _ we must fight!” Patrick Henry

    “(T)he foundation of our national policy will be laid in the pure and immutable principles of private morality; …the propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right which Heaven itself has ordained…” George Washington, First Inaugural, April 30 1789

    “Our constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” John Adams

    “Political interest [can] never be separated in the long run from moral right”

    “Can the liberties of a nation be sure when we remove their only firm basis, a conviction in the minds of the people, that these liberties are a gift from God? Thomas Jefferson

    The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government.”

    Patrick Henry

    “The citizens of the U.S. are responsible for the greatest trust ever confided to a political society”

    “We base all our experiments on the capacity of mankind for self-government.” James Madison

    “Resistance to tyrants is obedience to God.” Thomas Jefferson

    “Government is not reason; it is not eloquence. It is force. And force, like fire, is a dangerous servant and a fearful master.” George Washington

    “Necessity is the plea for every infringement of human freedom. It is argument of tyrants. It is the creed of slaves.” William Pitt in the House of Commons November 18, 1783

    “We must all hang together, or, assuredly, we shall all hang separately.” Benjamin Franklin at the signing of the Declaration of Independence, July 4, 1776

    A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity. Thomas Jefferson, First Inaugural Address.



    A strong body makes the mind strong. As to the species of exercises, I advise the gun. While this gives moderate exercise to the body, it gives boldness, enterprise and independence to the mind. Games played with the ball, and others of that nature, are too violent for the body and stamp no character on the mind. Let your gun therefore be your constant companion of your walks.

    Thomas Jefferson to Peter Carr, 1785. The Writings of Thomas Jefferson, (Memorial Edition) Lipscomb and Bergh, editors.

    One loves to possess arms, though they hope never to have occasion for them.

    Thomas Jefferson to George Washington, 1796. The Writings of Thomas Jefferson, (Memorial Edition) Lipscomb and Bergh, editors.

    Laws that forbid the carrying of arms… disarm only those who are neither inclined nor determined to commit crimes… Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man. Jefferson’s “Commonplace Book,” 1774_1776, quoting from On Crimes and Punishment, by criminologist Cesare Beccaria, 1764

    “No free man shall ever be debarred the use of arms.”

    Thomas Jefferson, Proposed Virginia Constitution, 1776, Jefferson Papers 344.


    “The balance of power is the scale of peace. The same balance would be preserved were all the world not destitute of arms, for all would be alike; but since some will not, others dare not lay them aside … Horrid mischief would ensue were one half the world deprived of the use of them … the weak will become prey to the strong.”

    Thomas Paine, Thoughts on Defensive War


    “Americans [have] the right and advantage of being armed, unlike the citizens of other countries whose governments are afraid to trust their people with arms.”


    “The Constitution shall never be construed to prevent the people of the United States, who are peaceable citizens from keeping their own arms . . .”


    “When the resolution of enslaving America was formed in Great Britain, the British Parliament was advised by an artful man, who was governor of Pennsylvania, to disarm the people; that it was the best and most effectual way to enslave them; but that they should not do it openly, but weaken them, and let them sink gradually…I ask, who are the militia? They consist of now of the whole people, except a few public officers. But I cannot say who will be the militia of the future day. If that paper on the table gets no alteration, the militia of the future day may not consist of all classes, high and low, and rich and poor…”

    George Mason, Virginia Constitution Convention


    “Before a standing army can rule, the people must be disarmed; as they are in almost every kingdom in Europe. The supreme power in America cannot enforce unjust laws by the sword; because the whole body of the people are armed, and constitute a force superior to any band of regular troops that can be, on any pretence, raised in the United States. A military force, at the command of Congress, can execute no laws, but such as the people perceive to be just and constitutional; for they will possess the power, and jealousy will instantly inspire the inclination, to resist the execution of a law which appears to them unjust and oppressive.”

    Noah Webster, An Examination of the Leading Principles of the Federal Constitution (Philadelphia 1787)


    “Who are the militia? Are they not ourselves? Is it feared, then, that we shall turn our arms each man gainst his own bosom. Congress have no power to disarm the militia. Their swords, and every other terrible implement of the soldier, are the birthright of an American…[T]he unlimited power of the sword is not in the hands of either the federal or state governments, but, where I trust in God it will ever remain, in the hands of the people.”

    Tenche Coxe, The Pennsylvania Gazette, Feb. 20, 1788.


    “They that can give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.”


    “A militia, when properly formed, are in fact the people themselves … and include all men capable of bearing arms.”

    Richard Henry Lee – Senator, First Congress

    “To preserve liberty, it is essential that the whole body of people always possess arms…”


    “Whenever governments mean to invade the rights and liberties of the people, they always attempt to destroy the militia, in order to raise an army upon their ruins.”

    Rep. Elbridge Gerry of Massachusetts


    “The very atmosphere of firearms anywhere and everywhere restrains evil interference they deserve a place of honor with all that is good.”

    “A free people ought not only to be armed…”


    “The great object is that every man be armed. Everyone who is able may have a gun.”

    “Are we at last brought to such humiliating and debasing degradation that we cannot be trusted with arms for our defense? Where is the difference between having our arms in possession and under our direction, and having them under the management of Congress? If our defense be the real object of having those arms, in whose hands can they be trusted with more propriety, or equal safety to us, as in our own hands?”

    March 23, 1775:

    Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!

    Terrorism and the New American Republic

    In 1786, John Adams and Thomas Jefferson met with Arab diplomats from Tunis, who were conducting terror raids and piracy against American ships.

    History records them as the Barbary Pirates. In fact, they were blackmailing terrorists, hiding behind a self-serving interpretation of their Islamic faith by embracing select tracts and ignoring others. Borrowing from the Christian Crusades of centuries past, they used history as a mandate for doing the western world one better. The quisling European powers had been buying them off for years.

    On March 28, 1786 Jefferson and Adams detailed what they saw as the main issue:

    “We took the liberty to make some inquiries concerning the Grounds of their pretensions to make war upon a Nation who had done them no Injury, and observed that we considered all mankind as our Friends who had done us no wrong, nor had given us any provocation. The Ambassador answered us that it was founded on the Laws of their Prophet, that it was written in their Koran, that all nations who should not have acknowledged their authority were sinners, that it was their right and duty to make war upon them wherever they could be found, and to make slaves of all they could take as Prisoners, and that every Musselman who should be slain in Battle was sure to go to Paradise.”

    Thomas Jefferson wanted a military solution, but decades of blackmailing the American Republic and enslaving its citizens would continue until the new American nation realized that the only answer to terrorism was force.

    “There’s a temptation to view all of our problems as unprecedented and all of our threats as new and novel,” says George Washington University law professor Jonathan Turley. Shortly after the terror attacks of Sept. 11, Turley advised some members of Congress who were considering a formal declaration of war against the suspected perpetrators. He invoked the precedent of the Barbary pirates, saying America had every right to attack and destroy the terrorist leadership without declaring war.

    “Congress did not actually declare war on the pirates,” Turley wrote in a memo, “but ‘authorized’ the use of force against the regencies after our bribes and ransoms were having no effect. This may have been due to an appreciation that a declaration of war on such petty tyrants would have elevated their status. Accordingly, they were treated as pirates and, after a disgraceful period of accommodation, we hunted them down as pirates.”

    Because of their outlaw conduct, pirates — and modern-day terrorists — put themselves outside protection of the law, according to military strategy expert Dave McIntyre, a former dean at the National War College. “On the high seas if you saw a pirate, you sank the bastard,” he says. “You assault pirates, you don’t arrest pirates.”

    Shoot first, ask questions later. Wanted: Dead or alive. Such is our official policy regarding Osama bin Laden, the most infamous outlaw of the era.

    One of the enduring lessons of the Barbary campaigns was to never give in to outlaws, whether you call them pirates or terrorists. In the late 1700s, America paid significant blackmail for peace — shelling out $990,000 to the Algerians alone at a time when national revenues totaled just $7 million.

    “Too many concessions have been made to Algiers,” U.S. consul William Eaton wrote to the Secretary of State in 1799. “There is but one language which can be held to these people, and this is terror.”

    Michael G. Leventhal

    Editor & Publisher


    “The best we can hope for concerning the people at large is that they be properly armed.”

    “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Thomas Jefferson

    “If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” Thomas Jefferson

    “You have rights antecedent to all earthly governments; rights that cannot be repealed or restrained by human laws; rights derived from the Great Legislator of the Universe” John Adams – 2nd Pres.

    “The Constitution of most of our states (and of the United States) assert that all power is inherent in the people; that they may exercise it by themselves; that it is their right and duty to be at all times armed and that they are entitled to freedom of person, freedom of religion, freedom of property, and freedom of press.” Thomas Jefferson

    “Let us therefore animate and encourage each other, and show the world that a free man, contending for his liberty on his own ground, is superior to any slavish mercenary on earth.” George Washington, July 2, 1776

    “I consider trial by jury as the only anchor yet imagined by man by which a government can be held to the priciples of its Constitution.” Thomas Jefferson

    “Democracies have been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their death.” James Madison

    “A generous parent would have said, ‘if there must be trouble, let it be in my day, that my child may have peace.” Thomas Paine, Common Sense

    “Posterity, you will never know how much it cost the present generation to preserve your freedom. I hope you will make good use of it. If you do not, I shall repent in heaven that ever I took half the pains to preserve it.” John Adams

    “The way to have safe government is not to trust it all to the one, but to divide it among the many, distributing to everyone exactly the functions in which he is competent….To let the National Government be entrusted with the defense of the nation, and its foreign and federal relations….. The State Governments with the Civil Rights, Laws, Police and administration of what concerns the State generally. The Counties with the local concerns, and each ward direct the interests within itself. It is by dividing and subdividing these Republics from the great national one down through all its subordinations until it ends in the administration of everyman’s farm by himself, by placing under everyone what his own eye may superintend, that all will be done for the best.” Thomas Jefferson

    “I know of no safe depository of the ultimate powers of society but the people themselves and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them, but to inform them.”

    “There is not a shadow of right in the general government to intermeddle in religion. Its least interference with it would be a most flagrant usurpation.” James Madison

    “If taxes are laid upon us without our having a legal representation where they are laid, we are reduced from the character of free subjects to the state of tributary slaves.” Samuel Adams

    “We must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty or profusion and servitude. If we run into such debts as that we must be taxed in our meat in our drink, in our necessities and comforts, in our labors and in our amusements, for our callings and our creeds…our people.. must come to labor sixteen hours in the twenty-four, give earnings of fifteen of these to the government for their debts and daily expenses; and the sixteenth being insufficient to afford us bread, we must live.. We have not time to think, no means of calling the mis-managers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow suffers. Our landholders, too…retaining indeed the title and stewardship of estates called theirs, but held really in trust for the treasury, must…be contented with penury, obscurity and exile.. private fortunes are destroyed by public as well as by private extravagance.

    This is the tendency of all human governments. A departure from principle becomes a precedent for a second; that second for a third; and so on, till the bulk of society is reduced to mere automatons of misery, to have no sensibilities left but for sinning and suffering… And the fore horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.” Thomas Jefferson

    “If the present (Continental) Congress errs in too much talking, how can it be otherwise, in a body to which the people send one hundred and fifty lawyers, whose trade it is to question everything, yield nothing, and talk by the hour?” Thomas Jefferson – 1821

    “It is not only his right, but his duty…to find the verdict according to his own best understanding, judgment and conscience, though in direct opposition to the direction of the court.” John Adams

    “All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.” John Adams


    “We, the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution, but to overthrow men who pervert the Constitution.” Abraham Lincoln

    “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the Bankers in the rear. Of the two, the one at my rear is my greatest foe.. corporations have been enthroned and an era of corruption in high places will follow, and the money powers of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed. Abraham Lincoln

  • You know, since my proof of inevitable failure (available online since 10 years before the formal internet) attracted so much attention at KITCO, Colorado U. Longwaves and so forth, it is amazing how compromised the only valid arguments have been by such preposterous notions that our problem relates to currency as a debt or obligation. This is an utterly stupid deduction, which only compromises the possibility we understand the issues. “Debt” *itself* cannot possibly injure us, if in repaying actual debts, we are to pay no more than the principal (as is the case in my 1968 proposition of mathematically perfected economy™). It is only all the plagiarists who rise up in pretended authority, who claim (without a grain of proof) that “debt” injures us. It is not debt at all. On the contrary, it is the obfuscation of our promissory obligations to each other, in which *interest* inherently, irreversibly, and therefore terminally multiplies *artificial indebtedness* into terminal sums of artificial indebtedness.

    All the rest of the mere assertions of your article are equally impertinent then. You lead us *astray* from understanding. How instead is *interest* (in the present obfuscation of the currency) the real issue?

    The falsification of debts to the purported banking system permits a further falsification ― that interest is justified to mere publishers *of the evidence* of our promissory obligations to each other.

    As I explained 43 years ago in my original prescription of *one* mathematically perfected economy™, the latter falsification in turn results in an implicit obligation to maintain a vital circulation (or we cannot even persist in servicing *initial* falsified debts *subject to interest*), because the obfuscation obligates us to pay *interest and principal* out of a circulation always comprised *at most* *of some* *remaining principal*!

    Thus *interest* is the cause of our issues, because we can only maintain the vital circulation by perpetually re-borrowing principal and interest back into a circulation, perpetually deflated by paying principal *and interest* out of a circulation which is always comprised *at most* of *some remaining principal*.

    What principal we *necessarily borrow back into circulation* then always comprises new debt, equal to the former sum of debt which cannot be resolved (making it mathematically impossible to pay down the sum of debt).

    What interest we *necessarily* borrow back into circulation then perpetually increases the sum of debt by so much as periodic interest on an ever greater sum of debt.

    Thus too then, the sum of artificial, falsified debts “to banks” thus increases *even at an inherently increasing rate* (!) of ever greater sums of periodic interest on an ever greater sum of artificial, falsified debt ― TO MERE PUBLISHERS OF THE EVIDENCE OF OUR PROMISSORY OBLIGATIONS TO EACH OTHER.

    We do not even “borrow money” from banks! We merely *think* (ever so wrongly) that we can only “borrow” our own promissory obligations *to each other* FROM A PARTICULAR PUBLISHER!

    Worse, we too think wrongly that the mere costs of publication somehow indeed justify “interest” ― which of course engenders the present terminal failure.



  • Bob Regan

    What can be done? Who is really
    working on the issue?

  • Don Levit

    How is interest paid on the new debt?
    Is it paid in cash or in Treasury securities?
    How does this impact the official total debt (debt held by the public plus intragovernmental debt)?
    Don Levit

  • Bob, Don,

    We are sponsors of a global mandate for mathematically perfected economy and absolute consensual representation™. This is a process (which I originally prescribed to the Reagan Campaign in 1979) which transforms any of the central banking systems which have been imposed upon the world into mathematically perfected economy™ ― not only immediately, but even virtually without cost.

    Your questions are answered by my radio broadcast archives. Click the link to my name above. It will take you to those archives, where virtually any and ever question is already answered.


  • We can only secure economic justice by spreading this information ambitiously, and thereupon, by asserting our right to proper, true economy, The recommended course of action is:

    1) to proliferate to the world populous the understanding of MPE™ or mathematically perfected economy™;
    2) by act of true representation of PEOPLE immediately transition to mathematically perfected economy™

    The Pretended representation therefore would hardly achieve these purposes if a knowledgeable public discovered that the lies of pretended economy invalidate its every asserted principle; that none of this has even the least power to serve us in any way; that the allegiance of the government of every republic owes to the very perpetrators who, by taking so inconceivably from us, readily install and enforce usurpation in every vital office and controllable media.

    The perpetual, concerted evasion of accountability before us therefore is no accident ‚ it is instead a calculated, vital accessory to the most serious, arrogant, and repulsive crimes in history….

    Banking was conceived in iniquity, and born in sin. Bankers own the
    earth. Take it away from them, but leave them the power to create
    money, and with the flick of a pen, they will create enough money
    to buy it back again. Take this great power away from them, and
    all great fortunes like mine will disappear. And, they ought to
    disappear, for then this would be a better and happier world to
    live in. But if you want to continue to be the slaves of the
    bankers, and pay the cost of your own slavery, then let
    bankers continue to create money, and control credit.

    SIR JOSIAH STAMP (21 June 1880 – 16 April 1941)

  • mondobeyondo

    It is no coincidence that the federal income tax system was set up in the same year (1913) as the Federal Reserve. Before 1913, there was no federal income tax, and thus no IRS. It was all deviously planned this way.

    The IRS is simply the Fed’s collection agency.

  • impeachRonPaul

    Mel: America has rejected Ron Paul many times. He is a career politcian and a staunch republican. He has accomplished nothing.

    I doubt most people think about issues like the Fed. Too bad it is imporant. Politcians like Ron Paul divide us with social issues. Ron Paul has fought against civil rights for decades. He wants a religous dictatorship. One religion to govern us, like Iraq and Afghanastan.

    When your freedom is on the line, you do not have the luxury of voting for the candidate with the best economic plan. Ron Paul wants to tranfer wealth to the top 2% and only supports big corporations.

    Ron Paul is racist and homophobic as is the scum bag republican son of his, Rand Paul.

    It is better to vote for liberty and freedom for all.

  • mondobeyondo

    Debt = principal + interest.

    Right now, it would be a tremendous struggle to pay the principal on the national debt, never mind the interest rate, which is about as low as you can go.

    The Fed is running out of rabbits to pull from their hat, and now they’re reaching for whatever else pops up out of their magic hat. It could be the quantitative easing pit bull. Let’s hope not.

    You can’t have a sustainable economy with near 0% interest rates. If there is any hope of a true recovery, interest rates HAVE to rise! So what’s left to do?

    Of course, if we did that, the national debt would then explode in a fashion that would make a Saturn V rocket or even a bottle rocket jealous. Let’s do what Volcker did in the early ’80s to jump start the economy, and raise the interest rate to 18%. It brought the economy back from the recession in the early 80’s, but then, we didn’t have a $14 trillion debt in those days. We do now.

    $14 trillion and change, times .18%…
    On the other hand, forget it, I’m starting to get a migraine.

  • DownWithLibs

    Interesting Karen. Thanks.

  • mondobeyondo

    @ Karen

    – And how many of our politicians today believe in the principles which our founding fathers fought, bled and died for?

    My guess is – not a single one of them.

  • PaulF

    impeachRonPaul is clearly very Christophobic and confused, but I won’t stoop to the level of calling him a “scumbag”.

  • John

    We should get this article out to as many people. The beauty of the internet is that it allows a backdoor to the truth filtered by mainstream media. The more people know about the FED, someday soon we will see massive protests to abolish the FED. If you are being hurt by how the economy is being run, now is your time to get even, by highlighting this link in the address bar, copy and paste it in an email message and send it to as many people you know.

  • One of the clearest and most informative articles that should wake Americans up!!! After reading this article I can now see the 19 reasons why the Federal Reserve is fully behind our financial nightmares!!! Way too much power to the Banks and the Federal Reserve. The point of no Return has arrived for the US and the world!!! God’s mercy and His grace has just about run out on this world of greed!!!

  • Gary2

    The fed needs to focus on a full employment policy to force these scumbag corporations to pay a living wage.

  • Laticia

    Another pedagogical masterpiece!

    One correction. The owners of the Federal Reserve are not incompetent. If you believe that they are trying to serve the USA, then of course they are utter idiots. But there is another way of looking at this. The Fed is working for international bankers, not for the American public. They are not fools, but traitors. In other words, they cause bubbles, crashes, cycles, on purpose. Right now, their goal seems to be destruction of the USA–wars we can’t afford, transfer of trillions to the big banks, war of many state governors on unions. It’s anyone’s guess where they want to take us, but treason and destruction are clear enough, and it is likely that they are part of an ingenious plan to give more money, and more power, to the big bankers.

  • DMyers

    Karen, go girl! Great contribution. I’m humbled by a wisdom that knows no understanding and a courage to which I could never rise.

    The long Ponzi Scheme has reached its end, in spite of all appearances that it could go on forever. The laws of Nature are still in force. You can’t get more than there is [First Law of Thermodynamics].

  • Mel

    impeachRonPaul: You are making up stories about Ron Paul. I have watched Ron Paul voting records in the congress and all his speech about Fed. He is only politician who voted with his principle even it is against the Republican majority. For the records, he voted against all wars and all bailout for the banks that the majority of the Republican has voted for. He is against almost all regulations initiated by the govt because he knows that they will eventually ended up being wasteful and increase the size of the govt, hence the deficit. The most important thing is that he is the only politician that is willing to audit and stop the FED. I believe that is the reason why all the media have a smear campaign against him whenever he runs for President. I advise you to get your brain straight from the mainstream media brainwashing.

  • Mario

    So what’s the problem,
    Why dose the Fed have to stop printing more money?
    If they have been doing it since 1913, then let them continue. There is no reason to stop it, and if we don’t stop then everything will contuine as it always have. I’v said it before we worry to much, do you really thing that they will ever let it stop…..I don’t think so, they are making so much money that they are not going to kill the golden goose.

    So relax

  • Jay Muchmaker

    Unlike your forefathers who risked everything including their lives (and many were lost) you have become a nation of winers. Yes it is true that elected officials make mistakes,many of them are paid for by the companies our dollars support at the supermarket or drug store.

    the cards are stacked against all of us equally but some make it and others complain.

    I am a single father of 2 great girls now adults with a grade 9 education, a cronic illness called Crohn’s disease since 20, have an exwife who kept me in courts for more than 10 years including accusing me of sexually abusing my children, and have been given nothing by anyone. Despite that I am the owner and CEO of a mid 7 figure company, net worth in the millions and am almost totally debt free. I travel 5 months a year around the world and recently bought my older daughter a house. I have never blamed anyone for any of my misfortunes and thank god every day for all the gifts he has given me.

    If I were there in 1776 I would have glasdly signed my name to that decaration no matter what the consequinces

    Please realise that only you can be blamed for your circumstances

  • William

    The US Constitution assigns to the US Congress the power to create money and regulate the value thereof. The US Congress can not reassign its powers. The FED is unconstitutional. WHY, therefore, is the FED still in existence?? WHY has not anyone in the federal government challenged this illegal bank since 1913?? Answer: The FED is part and parcel of the Rothschild/Illuminati/Bilderberger cartel which intends to rule the world. Ask your worthless US representative or US Senator WHY they do not support abolishing the FED??

  • Mike

    A point: I believe that the Federal Reserve knows exactly what they are doing, it’s not incompetence, it is corruption and wickedness

  • Lennie Pike

    Jay Muchmaker,

    I wasn’t born with the abilities to be the owner and CEO of a 7 figure company, that is if it was your ability that accomplished that feat.

    I also wouldn’t want to do all the brown nosing and sucking up to bankers, lawyers, bureaucrats, and politicians you probably had to do.

    I am a veteran taxi driver (seen the movie?) but I am proud and happy with what I have accomplished by working 80 hour weeks, saving, and investing in PMs at the right time.

    I recently got the hell out of the U.S. and now live in Brazil. The Dollar traded at $1 : R$2.5 Brazilian Reais at the beginning of my transition to Brazil, and now trades at $1 : R$1.62. At the same time the dollar was free-falling, of course Brazil’s central bank was devaluing the Real for exports to continue so now the Reais that I do have a lot smaller purchasing power than they should have for me thanks to the Central Bankers of both countries, but mainly of the U.S..

    10% of Brazil’s economy is exports, but that 10% happens to be the territory of the Brazilian Wealthy who control the Brazilian Central Bank, so if devaluing the Real causes inflation for the already very poor Brazilian People -f**ck ’em, we got ours.

    Half of what I worked and saved for is gone due to other people!!!

    From experience, most of us know we will never get ahead no matter how hard we try, and that if it wasn’t for OTHERS!!! we just might have a chance. If we could stay even where we are we would be very happy.

    Or parents and grandparents had a better standard of living.

    The last sentence in your post is NOT TRUE.

    I don’t believe your last name is Much Maker by the way.

  • Common_Tater

    I remember when you started this blog, you’ve come a long way congrats.

    The only thing I would add to your points is one missed by most folks and that is the fact that banks are allowed to hold treasury bonds as reserves. This essentially means that they are allowed to hold public liability on their books for even more leverage into the economy.

    Socialism cannot exist without government financing as the cost of covering the liabilities in conjunction with the overhead of a bureaucracy to manage the system is cost prohibitive. That is why ever single socialist system is in debt to their eyeballs, and who do you think propagates the socialist agenda? The banks of course since the more the government promises in entitlements, the greater in debt they become and the more the banks make in interest payments from the debt they hold and leverage they have in the economy to make loans.

    It is a very sick and immoral system.

  • Mike D.

    It is unfortunate we have no power over the federal reserve.What is going on is nothing new.We all need to observe what is going on carefully.Several states under there republican legislature are attacking peoples way of life.There pay, pensions and even removing there right to vote.We best watch this carefully.Under the heading of communism is a statement for control.I think it says keep the working people so preoccupied with the necessities of life they will be blinded by the take over until it has consumed them.A job a place to live and feeding there family.Hmmmmmmmmmm sound at all familar.What have we let slip into our politics under the name of Republican or Democrat.Could it just be the above mentioned.Good Article . Real Scary

  • Celebrate the the Fed’s 100th birthday(2013) early! Congress should repeal the act which established it! Perhaps a bit naive, but, truthful!

  • PaulF

    I have read a great deal about the true nature of central banking in the last several years and yet this may be the best short summary of its evils I’ve come across. I’ll be spreading this link around.

    • Michael

      Thank you Paul – I really appreciate that. The more people we can wake up the better.

  • Flyer1

    The Panic of 1907 anyone?

  • Flyer1

    How do you really know if the Fed actually works in your best interest against the corruption of lesser beings?

  • dan17

    great article and great comments. my comment is that all interest that has been paid on the national debt to the bankers should be repaid to the people. my second point is that the countries that are borrowing dollars from fed through imf and world bank are victims of the fed just like the american people. and the bottom line the money should belong to the people along wuith the power to coin money. simple as that.

  • morpheus

    I don’t need reasons. It’s a fact. The question is, what and when are you going to do something about it?

    If you’re Clueless, then try this:

    Read “Common Sense 3.1” at ( )

    We don’t have to live like this. “Spread the News”

  • 007

    The Federal Reserve is so much at the root of our countries problems. Moreover, it affects the public in such unseen an insidious ways. It is run by a bunch of arrogant pricks that believe in central planning that would make Stalin jealous.

    It is a banking cartel designed to take care of it’s members. The last bailout should leave no one with any doubt on that. We have to inform the public of this beast.

    In the mean time, buy gold and oil. Gold is a natural superior reserve currency that the fed can not print. Oil is the most valuable currency that will only rise as the dollar is devalued. Protect yourself.

    My question is when are they going to stop us from investing in oil and gold. This is an easy decision to defend yourself and your family.

  • tmk

    #13 is wrong. The so-called “free market” should have nothing to do with the issuance of monetary credit.

    Why should private individuals be allowed to make a profit by manipulating the currency of a nation?

    Now, if they truly have physical capital that they want to lend to someone, that is a different story. I’m in favor of that. They can charge whatever interest they want. But they should not be able to create new money that never existed before. Only the government should do that.

  • Mike D.


  • Don Levit

    Mike D:
    Don’t forget about the federal employees, too.
    Their trust fund is just like Social Security’s. The money has been loaned to the Treasury, paid for current government expenses, and lowered the deficits.
    To tap their trust funds, new money will have to arise – most likely through borrowing from the public. At least the states have some real assets they can liquidate in their pension plans, without having to go to the taxpayers for that portion.
    Don Levit

  • Mike D.


  • Excellent article Michael. You have brought together a wonderful group of people who are true realists. I applaud many of you on here who provide great replies. I like to further include the following quotes I have collected along the way since waking up from my slumber in 2008.

    “This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs the Bill, the invisible government of the Monetary Power will be legalised… The worst legislative crime of the ages is perpetrated by this banking and currency Bill”.——- Congressman Charles Lindbergh Sr., R-MN, Feb.17, 1917.

    “Some people think the Federal Reserve Banks are US government institutions. They are not… they are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will”. —— Congressman Louis T. McFadden, R-PA.

    “When the Federal Reserve act was passed, the people of the United States did not perceive that… the United States were to be lowered to the position of a coolie country which has nothing but raw materials and heavy goods for export; that Russia [China, India…] was destined to supply the man power and that this country was to supply financial power to an international superstate — a superstate controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.”———— Congressman, Louis T. McFadden, June 10, 1932.

    The Bankers Manifesto of 1892 to the U.S. Congress:

    “We (the bankers) must proceed with caution and guard every move made, for the lower order of people are already showing signs of restless commotion. Prudence will therefore show a policy of apparently yielding to the popular will until our plans are so far consummated that we can declare our designs without fear of any organized resistance.

    Organizations in the United States should be carefully watched by our trusted men, and we must take immediate steps to control these organizations in our interest or disrupt them.

    At the coming Omaha convention to be held July 4, 1892, our men must attend and direct its movement or else there will be set on foot such antagonism to our designs as may require force to overcome.

    This at the present time would be premature. We are not yet ready for such a crisis. Capital must protect itself in every possible manner through combination (conspiracy) and legislation.

    The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.

    When, through the process of law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of the government applied to a central power of imperial wealth under the control of the leading financiers.

    People without homes will not quarrel with their leaders. History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.

    The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party.

    By thus dividing voters, we can get them to expend their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discrete actions, we can secure all that has been so generously planned and successfully accomplished.”

    Also check out:

    Dear Financial Tyrants,

    Your days are numbered.
    We have the power.
    We are the people.
    Expect us.

    The Anonymous OpESR “manifesto” presented in their first video states the following:

    “We are a decentralized non-violent resistance movement, which seeks to restore the rule of law and fight back against the organized criminal class.

    One-tenth of one percent of the population has consolidated wealth in unprecedented fashion and launched an all-out economic war against 99.9% of the population.

    We are not affiliated with either wing of the two-party oligarchy. We seek an end to the corrupted two-party system by ending the campaign finance and lobbying racket.

    Above all, we aim to break up the global banking cartel centered at the Federal Reserve, International Monetary Fund, Bank of International Settlement and World Bank.

    We demand that the primary dealers within the Federal Reserve banking system be broken up and held accountable for rigging markets and destroying the global economy, effective immediately.

    As a first sign of good faith, we demand Ben Bernanke step down as Federal Reserve chairman.

    Until our demands are met and a rule of law is restored, we will engage in a relentless campaign of non-violent, peaceful, civil disobedience.”

    “May you live in interesting times.” We are living in interesting times my friends. Prepare accordingly.

  • The problem is the ability of the Fed to print up the money for the use of the US Gov’t to finance their overspending, and then charging interest on it. Since the interest doesn’t exist, it will continue to increase exponentially no matter how small the % rate is. One doesn’t have to look to deep to see the problems here. Our financial system will implode eventually.

    We help Americans find jobs and prosperity in Asia. For details, visit

  • Dave

    Excellent post!

  • Timo44

    I agree with you 100% and I am trying to inform people through facebook and even made some flyers. I understand that things are only going to get worst much worst if people don’t come to understand the true reasons for our money problems. I hope that people can come together and remove these horrible people from being charge of making our money and we can get a better system for every one not just for the rich.

  • david

    #20) The Fed short circuits our political system. Without the Fed, a politician would have to raise taxes for their pet projects. Voters would resist that. With the Fed, money is created out of nothing and used to buy the favor of certain groups. There is a delay between the creation of that money and resultant inflation, and the inflation is treated like a force of nature, not a result of money creation. Voters therefore don’t make the connection between political spending and the rise in inflation, which is form of txation without representation.

  • Excellent post about the Federal Reserve, I reposed it on my banking page at This post helps debunk the myth that America has a true capitalistic, free-enterprise economy. Instead the American economic system is a rigged game with crony-capitalism for some, where profits are privatized and losses are socialized.

    For most of its 98-year history the Federal Reserve has been manipulating the economy in relative obscurity. But with the “financialization” of our economy over the past 20 years or so, the Fed plays a move visible, and detrimental role. Now is the time to educate folks that the ordinary American is a debt slave in a debt-based economy, centrally planned by the Federal Reserve.

  • Mike D.

    I realize we are in a constant battle with fed manipulation buttttttt.I am retired and in a constant battle of jealousy over my pension.I now see under the front of the tea party canidates the Republican party is pushing to eliminate our pensions.I see the new Wisconsin congressman thinks we should eliminate medicare, medicade and cut social security.He states this would only fall on the backs of those fifty five and under.I thought all this complaining was about the Democrats putting a financial burden on the young people.Actually I do not see much difference so far either way young people will get screwed under what’s going on.I grew up respecting my teachers now I see there being called greedy and over paid.Of course these statements are uncalled for by anyone.With this fast changing world we are in the fight of our life to save our way of life.Some want us to give up and lower our standard of living .We elect people to help increase our standard of living not to bring it down. We do not want to be competive with two dollar a day countrys.LETS BRING THERE STANDARD OF LIVING UP TO OURS.We need help from both parties working on this.

  • mdp

    So now that we know how we got to this point, what can a person like myself, do?

  • I saw a very well articulated presentation by a guy from Mises Institute, showing how the Fed did more harm than good. The thrust was that we would be better off without the Fed.

    I’ve already written my Congressman, but I’m not sure what else I can do.

  • Alex

    Ending the Fed, with a Bill has to be the most important issue with the next election. It’s time for action. Words or agreement that the Fed needs to be repealed, will not accomplish anything—- only action. If a congressman will not support hr 6550 then what should we do with that congressman? We in this sentence are all the hard working people in America that are being suppressed. Can I get some agreement from 1 to 10 million people to join me to yell “End the Fed” 8 hours a day for the next year and a half to force this topic to the top for the next election? Or do we just look the other way and know three generations from now America will not have liberty!? The United States will be a organization of we the bankers, for the bankers, and by the bankers.


    We need to remove this system as quickly as we can. Iam just sick with anger who is going to step up an take action if it is not to late.We the people of this nation need to inform everyone to take action now. We need to impower all means an ways to develop a system that works. Our govt. does nothing but watch us all live our lives in fear an tourmoil.We are weak an they will use this against us. inform all an stay informed get involved reasearch an ask for answers hold are govt accountable for there mistakes we need big changes now

  • nymfasios

    I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
    Thomas Jefferson

  • nymfasios

    Thirty Little Known Facts About America

    1. The IRS is NOT a U.S. Government Agency. It is an Agency of the IMF. Diversified Metal Products v IRS et al. CV-93-405E-EJE U.S.D.C.I. Public Law 94-564 Senate Report 94-1148, pg 5967 Reor ganization Plan #26 Public Law 102-391
    2. The IMF is an Agency of the U.N. Black’s Law Dictionary 6th Ed. Pg 816
    3. The United States has NOT had a Treasury since 1921. 41 Stat. Ch. 214 page 654
    4. The U.S. Treasury is now the IMF. Presi dential Documents Volume 29 No. 4 page 113 22 U.S.C. 285-288
    5. The U.S. does not have any employees because there is no longer a United States. No more reorganizations. After 200 years of bankruptcy it is finally over. Executive Order 12803
    6. The FCC, CIA, FBI, NSA and all of the other Alphabet Gangs were never part of the U.S. Government, even though the ‘U.S. Government held stock in said ‘Agencies. &n bsp; U.S. v. Strang, 254 U.S. 491 Lewis v. U.S., 680 F.2d, 1239
    7. Social Security Numbers are issued by the UN through the IMF.
    The application for an SSN is the SS5 form. The Department of the Treasury (IMF) issues the SS5, not the ‘Social Security Administration. The new SS5 forms do not state who publishes them while the old form states they are Department of Treasury. 20 CFR Chap. 111 Subpart B 422.103 (b)
    8. There are NO Judicial Courts in America and have not been
    since 1789.
    ‘Judges do NOT enforce Statutes and Codes. Executive Administrators enforce Statutes and Codes. FRC v. GE, 281 U.S. 464 Keller v. Potomac Elec. Co., 261 U.S. 428 1 Stat. 138-178
    9. There have NOT been any ‘Ju dges in America since 1789. There have only been Administrators. FRC v. GE, 281 U.S. 464 Keller v. Potomac Elec. Co., 261 U.S. 428 1 Stat. 138-178
    10. According to GATT you MUST have a Social Security Number. House Report 103-826
    11. New York City is defined in the Federal Regulations as the United Nations. Ru dolph Guiliani stated on C-Span that ‘New York City is the Capital of the World. For once, he told the truth. 20 CFR Chap. 111 subpart B 422.103 (b) (2) (2)
    12. Social Security is NOT insurance or a contract. Nor is there a ‘Trust Fund. Helvering v. Davis, 301 U.S. 619 Steward Co. v. Davis, 301 U.S. 548
    13. Your Social Security check comes directly from the IMF which is an Agency of the United Nations. Examine one: top-left should be written ‘United States Treasury see 2-4 above.
    14. You own NO property. Slaves can’t own property. Read carefully the Deed to the property you think is yours. You are listed as a TENANT. Often times the Mortgage Holder or the State is listed as Seised in demesne as of fee. Senate Document 43, 73rd Congress 1st Session
    Seised in demesne as of fee. This is the strict technical expression used to describe the ownership in ‘an estate in fee-simple in possession in a corporeal hereditament. The word ‘seised is used to express the ‘seisin or owner’s possession of a freehold property; the phrase ‘in demesne, or ‘in his demesne, (in dominico suo) signifies that he’s seised as owner of the land itself, and not merely of the seigniory services; and the concluding words, ‘as of fee, import that he is seised of an estate of inheritance in fee-simple. Where the subject is incorporeal, or the estate expectant on a precedent freehold, the words ‘in his demesne are omitted. (Co. Litt. 17a; Fleta, 1.5, c. 5, 18; Bract. 1.4, tr. 5, c. 2, 2) Brown. “Black’s Law Dictionary
    Fourth Edition, page 1523.
    15. The most powerful court in America is NOT the United States Supreme Court, but the Supreme Court of Pennsylvania. 42 Pa. C.S.A. 502
    16. The King of England financially backed both sides of the Revolutionary War. Treaty of Versailles July 16, 1782 Treaty of Peace 8 Stat. 80
    17. You CANNOT use the U.S. Constitution to defend yourself because you are NOT a party to it. Padelford Fay & Co. v. The Mayor & Alderman of the City of Savannah, 14 Georgia 438, 520
    18. America is a British Colony. The ‘United States is a corporation, not a land mass and it existed before the Revolutionary War and the British Troops did not leave until 1796. &n bsp; Respublica v. Sweers, 1 Dallas 43 Treaty of Commerce 8 Stat 116 Treaty of Peace 8 Stat 80 IRS Publication 6209 Articles of Association October 20, 1774
    19. Britain is owned by the Vatican. Treaty of 1213
    20. The Pope can abolish any law in the United States. Elements of Ecclesiastical Law Vol. 1, 53-54
    21. A 1040 Form is for Tribute paid to Britain. IRS Publication 6209
    22. The Pope claims to own the entire planet through the laws of Conquest and Discovery. (Ever wonder why an Attorney, who is an Agent of the Pope through the International Bar Association, wants to do ‘discovery with you?) Pap al Bulls of 1495 & 1493
    23. The Pope has ordered the genocide and enslavement of Millions of people. Papal Bulls of 1455 & 1493
    24. The Pope’s ‘Laws are obligatory on everyone. Bened. XIV., De Syn. Dioec, lib, ix, c. vii., n.4. Prati, 1844 Syllabus prop 28, 29, 44
    &nb sp; 25. We are SLAVES and own ABSOLUTELY NOTHING. Not even what we think are ‘our children. Tillman v. Roberts, 108 So. 62 Van Koten v. Van Koten, 154 N.E. 146 Senate Document 43, 73rd Congress 1st Session Wynehammer v. People, 13 N.Y. Rep 378, 481
    26. Military Dictator George Washington divided up the States (Estates) into Districts. Messages and Papers of the Presidents, Volume 1 page 99 1828 Dictionary definition of ‘Estate
    27. ‘We, The People does NOT include the General Populace, or what you THINK is ‘We, The People. Barron v. Mayor and City Council of Baltimore, 32 U.S. 243
    28. It is NOT the ‘duty of the police to protec t you. Their job is to protect THE CORPORATION and arrest Code Breakers. Sapp v. Tallahassee, 348 So.2nd. 363 Reiff v. City of Philla., 477 F.Supp. 1262 Lynch v. NC Dept. of Justice, 376 S.E.2nd. 247
    29. Everything in the ‘United States is up For Sale: Bridges, Roads, Water, Schools, Hospitals, Prisons, Airports, etc. Did anybody take time to check who bought Klamath Lake? &nb sp; Executive Order 12803
    30. ‘WE are HUMAN CAPITAL. Executive Order 13037
    The U.N. has financed the operations of the ‘United States Government for over 50 years and now ‘owns every man, woman, and child in America. The U.N. also holds all of the land of America in Fee Simple.
    Why is the above so difficult for most people to understand? Simple: words like ‘perso n, ‘citizen, ‘people, ‘or, ‘nation, ‘is, ‘fact, ‘authority, ‘truth, ‘nation, ‘crime, ‘fraud, ‘charge, ‘right, ‘statute, ‘preferred, ‘assume, ‘prefer, ‘constitutor, ‘creditor, ‘debtor, ‘debit, ‘discharge, ‘payment, ‘law, ‘United States, and hundreds of others do NOT mean what you think they mean and you were never taught the ‘Legal Definitions so you would ‘Understand that you DON’T understand.
    Don’t let this information alarm you because without it you cannot be free.
    You have to understand that all slavery and freedom originates in the mind.
    When your mind allows you to accept and understand that the United States, Great Brittan and the Vatican are Corporations which are nothing but fictional entities which have been placed in your mind, you will understand our slavery is because we believe in fictions. Stephen Ammes, author The Ultimate Delusion
    The Illusion is MUCH larger than the irrefutable 30 points above, and the 30 points above are not even the tip of the tip of the iceberg. For more information, see:
    http://www.myspace. com/KC7AQK

  • Jeff198524

    It seems as though the dumbest people in a society become central bankers or economists. They all seem to follow the print-and-spend philosophy.

    • I believe you are right, Jeff. Any actions taken by any official having to do with the economy that did any good, would have been pure luck.

      • There are a lot of countries doing it right. America’s fixed thinking that they do things “better” than everyone else is what causes a lot of problems.

        • freddy

          the federal reserve was built so we would NOT have a print and spend economy. Since there is only a specific way to put money into the economy, we would not have inflation rates seen countless times throughout history as a result of the government printing money to spend it.

  • KyMatt

    If you want to help end the Fed, here is what you can do.

    1.) Spread the word, news, etc.
    2.) Vote Ron Paul for President 2012
    3.) Visit

    4.) Write your Congressmen and women and Senators and tell them we are coming to end the Fed. Represent us or be voted out of office.

  • Immanuel

    The Tax Free Money Amendment


    It is time for America to face some hard, cold facts. The declining value of the American Dollar has gone mathematically beyond the point of no return. Too many “fiat” Dollars have been created and while they now retain only 4% of their original value, this remnant of worth will soon be consumed by debt and inflation.

    The only real value remaining with the Dollar lies in the waning confidence of the American People and all the World’s Nations, which allowed worthless “fiat” Dollars to replace Gold as the backbone of their money and credit.

    Now we are starting to see countries like China, Russia, Iran, France and even the United Nations make plans to replace the weakened American Dollar as the World’s Reserve Currency. Should they succeed, trillions of worthless and rejected Dollars would flow back on America to cause hyperinflation, confusion and chaos.

    If we are to survive this eventual tragedy, then we have no choice but to act quickly to create local, failsafe currencies that are backed for double protection by a fixed standard of value and the public credit of the State.

    By resurrecting classical principles of monetary science we can now construct a tax-free money system, decentralized and democratized so as to prevent the horrible chaos, which historically visits every society after their money system has failed.

    Decentralized in that the power to create money and credit is removed from a centralized group of New York Bankers and transferred to local communities.

    Democratized in that the People are given control over the issuance of their local money through elected representatives responding to the popular will.

    The New York Bankers, who for all intents and purposes own the American Dollar, acquired their money monopoly by hook and crook. They are not accountable to anyone and so they are allowed to do whatever they want with America’s money and credit. That is why the entire world economy is now on the verge of a total collapse.

    The Tax Free Money Amendment, as presented here, is an idea whose time has come.

    The Tax Free Money Amendment
    A Proposed Amendment to the Constitution of the United States

    1. These monetary principles are hereby established as supreme law to guarantee an honest money system to the People of the United States and to eliminate the evils of taxation, usury, inflation, recession, unemployment and poverty.

    2. All forms of Central Banking, including the fraudulent method of lending known as “fractional reserve banking,” are hereby abolished and permanently prohibited in the United States of America. The Federal Reserve Act of 1913 and all it’s subsequent amendments are hereby permanently repealed.

    3. The 16th Amendment to the Constitution of the United States, authorizing Congress to “lay and collect taxes on incomes,” is hereby repealed and permanently prohibited. The Internal Revenue Service is hereby permanently abolished.

    4. The States shall have power to coin precious metals and issue tokens and bills of credit and declare them legal tender for the purpose of creating local currencies and providing stable mediums of exchange backed and secured by the public credit of the States.

    5. Issuing “fiat” money without a standard of value is hereby permanently prohibited. Every currency system hereafter created by the States, or by their political sub-divisions, shall be established on the “work hour standard,” where “one hour of unskilled labor” becomes the basic unit of value behind all mediums of exchange in the United States.

    6. Instead of issuing debt bonds and taxing their Citizens, the States may now issue their public credit in the form of money, to spend on public projects and to lend, interest free, to creditworthy Citizens for the purpose of stimulating private enterprise and producing real wealth and value. The power to create money eliminates the need to tax and borrow.

    7. Inflation and rising prices will result whenever there is surplus money in circulation. As a remedy, the affected State shall order a timely reduction in the volume of spending and lending until price levels are restored and stabilized.

    8. Recession and rising unemployment will result whenever there is a shortage of money in circulation. As a remedy, the affected State shall order a timely increase in the volume of spending and lending until full employment is restored and stabilized.

    9. Each State shall establish a “state clearinghouse” so that all local currencies authorized by the State may be traded anywhere within the State and exchanged back, in a timely manner, to the point of origin.

    10. The Federal Government shall establish a “national clearinghouse” so that all currencies authorized by the States may be traded in other States and exchanged back, in a timely manner, to the State of origin.

  • karen

    With this truth we are free.Shut her down
    Start us over debt free

  • snewman

    nymfasios – You may want to check your facts thoroughly. I checked a number of those facts and either the text is not as you say (omissions or additions). There is simply no support for any of the supposed facts you have put forth.

    As an exercise try looking up information relating to SS being part on the IMF which in part is part of the UN. The subsection cited in your post does not exist in the real document.

    Sadly this looks like a hoax designed to get people to believe some non truths.

  • Janna

    Why a majority of people chose to do nothing is beyond me for by ignoring the obvious is only encouraging the next depression- just on our horizon.
    Whatever you do, do NOT vote for OBAMA or ROMNEY. Both are just as screwed as the rest of Congress. The fact of the matter is that America has not had a decent President since Reagan, and before that Kennedy. At least Kennedy wanted to end the Federal Reserve, noting how it was doing nothing but creating more debt, more problems.

  • Banking (creating money out of nothing and loaning it into existence at interest) is a violation of two of the ten commandments, the prohibitions regarding lying and stealing. All of our problems are the result of failing to enforce the ten commandments. Small town bankers should be the first to sound the alarm. Their banks are will be acquired or eliminated.
    Charles R. Fuqua, J.D., Author of God’s Law – The Only Political Solution

  • Nick

    THIS ARTICLE IS NOT TRUE… They are skipping details or slanting facts to build their case. Immediate example, check the the amount of national debt chart. The chart is deceiving, because if you were to see it as a percentage of GDP it has drastically fluctuated up and down (it is okay to have more debt if you are making more money). I could go on…

    The US Treasury prints money, not the Fed. The “interest problem” presented is not actually how it works (plus American debt owed to Americans is acceptable). The eternal inflation problem is also false, because inflation makes your debt cost less and every country in the world has inflation (much higher than ours) or else serious problems due to deflation. In other words a slow and expected level of inflation is healthy for the economy. There are many more problems with this article, but I dont have time to explain them all. I hate that the media can lie to the average citizen who doesn’t have specified education on a subject and get away with it. I’ve studied economics and have a good understanding of this to see through the article but I’m equally at risk of unknowingly reading lies as anyone else in articles on other subject matters.

    • Papaw

      where does the article say the fed prints money?

    • Rocabilly

      The FED prints the money, the Treasury mints (real money) coins like the real golden eagle pressed with 99.9 gold. Look at any paper money and you’ll notice it says “Federal Reserve Note” on it aka they own and printed that note. Inflation makes the debt worth less, not cost less. Inflation is when the $ looses value over time. So if you borrow $1 today and tomorrow that dollar is worth half of the original dollar you borrowed, you essentially owe $2 back to the lender because the purchasing power of that dollar has been reduced to half. So you’ll have pay more, which means it cost you more. This is due to the “interest problem”, if all the money in circulation is derived from debt, and then that debt has to be paid back with interest, that means you’ll have to make more debt just to pay back your original debt + the interest, forever increasing the money supply and creating inflation. When any bank needs money, they borrow it from the fed at interest, they have to hold onto 10% of the deposit from the FED and can lend the other 90%, usually at interest, inflating the money supply. This is how the fractional reserve banking system works here and the more dollars there are, the less they are worth. The original bank could lend that 90% to another bank which will hold 10% of that deposit, and lend the rest at interest.There’s a lot of “fiat” dollars floating around our bloated banking system. As for your first statement, if your making more money, and your debt is rising with it, you aren’t paying off the debt. Yes the debt may fluctuate percentage wise with the GDP but GDP is measured on a yearly basis, not the overall total. GDP is also a measure of how the economy is doing, not how much the government owes back to said economy. Which is what the chart you speak of is showing. The percentage of GOV debt may be small in comparison on the yearly level, but when they’re aren’t paying it back, it adds up. GDP was $15 trillion this year, our national debt, what the gov owes is now $16.5 trillion. This means if we all worked for a year straight and sacrifice everything we made we’d still be $1.5 trillion short at paying the gov debt off. More than half that debt is owned by other nations, not American citizens, and don’t get me started on all the numbers they don’t talk about. Like the American populations personal debts owed to the banks that are siphoning our wealth away from us one interest rate at a time.

    • prezOworst

      every dollar is created electronically then sent to be printed or sent to banks directly as just data. THINK.

  • pearla


  • peon

    Wouldn’t it make alot of sense to say if the gov is borrowing money from you, you can’t charge more than x amount interest? And that interest can’t be more than the amount…duh. And gov should NEVER be able to borrow from the Fed Reserve until it’s debt is paid. If this were the scenario, what would be the plus / minus?

  • EruditeMan

    The USA is governed by individuals in Congress who are interested solely in their personal aggrandizement and accumulation of personal fortunes.

    The last provision of the Federal Reserve Act
    of 1913, Sec. 30, states, “The right to amend, alter or repeal this Act is expressly reserved.” This language means that Congress can at any time move to abolish the Federal Reserve System, or buy back the stock and make it part of the Treasury Department, or to altar the System as it sees fit. It
    has never done so.

    No Congress, no President has been strong enough to stand up to the foreign-controlled Federal Reserve Bank. Yet there is a catch – one that President Kennedy recognized before he was slain – the original deal in 1913 creating the Federal Reserve Bank had a simple back-out clause. The investors loaned the United States Government $1 billion.

    The back-out clause allows the USA to buy out the system for that $1 billion. If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight, and the need for more taxes and even the income tax, itself.

    Thomas Jefferson was concise in his early warning to the American nation, “If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

    World economic history will soon be repeated as Nations of the Earth refuse to buy more USA debt and hyperinflation sets in. China has already inked agreements with a handful of nations to settle its international dealings in Chinese Yuan instead of Federal Reserve Bites. It has also been accumulating tons of gold bullion. As China grows economically it will push the USA off of the economic mountaintop and become the world’s economic powerhouse for the foreseeable future.

    We will soon see the golden rule in action: “He who owns the gold makes the rules.”

Finca Bayano

Panama Relocation Tours



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