The value of the dollar has declined by over 90 percent since the creation of the Federal Reserve in 1913. Did the Fed really cause this loss of savings, insurance policies, retirement funds, and purchasing power? The answer, emphatically, is that with the cooperation of government, the Fed has indeed destroyed the dollar’s value. Where did all that value go? It was stolen by government and its partner in crime, the Federal Reserve.

In January 1993, National Geographic magazine published an article entitled “The Power of Money.” Written by Associated Editor Peter T. White, it presented a very clear explanation of how the Fed operates. White asked a Fed official where the organization had obtained $100 million it had just used to purchase some securities. “We created it,” said the Fed employee. “It’s money that didn’t exist before.” He matter-of-factly admitted that no limit existed on the Fed’s ability to create money out of nothing. 

The money created in this manner takes on value by reducing the value of all existing currency – yours, mine and everyone else’s. The term for this thieving process is inflation. It causes every merchant and service provider to want more of it for goods and services. All dollars, the ones in your pocket, the ones in your savings account, everywhere they exist, have lost value.

Amazingly, this damaging process has been reported even on the front pages of the New York Times. But most readers fail to understand what appears right before their eyes. On November 26, 2008 under the headline “U.S. Plans $800 Billion in Lending to Ease Crisis,” Edmund L. Andrews referred to the combination of the Fed and the Treasury and reported in his first sentence: “They would print as much money as needed.” Three months later on March 9, 2009, this same reporter indicated in another blaring headline that the “Fed Will Inject $1 Trillion More To Aid Economy.” This feat will be accomplished, said the Timesman by “creating vast new sums of money out of thin air.” National Geographic and the New York Times are not alone in pointing to what is occurring. 

Whenever the federal government needs money, it borrows by issuing bonds. Some are purchased by the American people; a large quantity are bought by foreigners, namely the Chinese and Japanese governments; but many end up in the possession of the Fed, purchased with freshly created dollars that cost the privately owned Fed nothing. When this new currency – from the Fed or from anywhere – is spent by the government and enters the system, the value of all dollars becomes less. 

With an admitted national debt of over $11 trillion (much higher when unfunded obligations for Social Security and Medicare are figured), the Obama administration expects a deficit for the current fiscal year of $1.8 trillion – more than four times any previous yearly shortfall. In a recent single year, the cost of interest on only the admitted national debt totaled $1,400 for every man, woman and child in the nation. Wonder why taxes are high? This is madness or worse.

When the Fed began operations nearly 100 years ago, our nation had currency backed by valuable commodities such as gold and silver.  Gold was outlawed by the Roosevelt administration in 1933, silver was removed as the backing for dollars in 1968.  With no requirement for anything in the nation’s vault to support the currency, Fed action became unrestrained. The money supply continues to grow, and even the New York Times has told us what’s happening. 

Should the process continue, the dollar will soon be worthless. Suggestions to address this looming disaster have included adopting a world currency and accepting world government. But that would cancel the Declaration of Independence and the U.S. Constitution, something no good American wants.  

The sane answer to these frightening developments must begin with reducing the size, power and cost of the federal government so there will no more deficits. It means placing something of value behind the currency. And it has to include a termination of the Federal Reserve, the engine of inflation. What to replace the Fed with? How about nothing! Honest money does not have to be managed. 

The U.S. Constitution authorizes Congress to coin money. In 1792, Congress created a mint to stamp the peoples’ gold and silver into coinage. There is no authorization in the document for the government to start a bank, and especially none to start the totally unregulated Federal Reserve. Yet, every member of Congress and many other government officials swear an oath to abide only by the powers noted in the Constitution and to adhere to its stated and implied limitations. Sad to report, it’s almost as if the Constitution doesn’t exist. All Americans are responsible for allowing this travesty.

But help is on the way.  Right now, H.R. 1207 calling for a full audit of the Federal Reserve has been introduced in the House. It already has 245 co-sponsors. This is a significant first step toward creating awareness about what goes on at the Fed and why it should be abolished. Over in the Senate, a companion measure, S. 604, seeks the same goal. The revelations that a full audit can produce will surely spur moves toward abolishing the Fed and its money manufacturing power. That day can’t come too soon.

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Pat Henry

June 30, 2009

189.130.2.146

Votes: +6

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Fed up

I agree wholeheartedly with the "End the Fed" campaign, but solely because it is educating people.

Why the qualification? Because it also seems like the globalists themselves will gladly end the Fed - because they can use this as an artificial conservative "victory" to enact a more global financial institution. One that no single national government can stop. This would be their Phoenix from the ashes.

Is the real answer to educate about money (real money, not fiat counterfeits) so that folks will start using it as an "alternative currency" until it doesn't matter how many "Reserve Notes" or Ameros they pump out -- no one will want to use them. Die like a worthless Continental. Put faith in sound principle, and remain standing after the coming storm.

Bacuzmo

July 05, 2009

24.19.56.210

Votes: -5

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realistic idealism, philosophy based on evidence

US currency is now the Gold standard of the world. The government has been stable for a long time, the military strong, and the currency is virtually unconterfeitable. What we do with this gold should only be restricted by our sense of stewardship and our realistic imagination of what is possible. We are on the verge of a global strength of humanity that has not been possible before. We should keep progressing with bravery, caution, knowledge, and creative understanding.

CUOQ1

July 07, 2009

24.12.228.134

Votes: +1

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Only half money

Why is the second purpose of money ignored? I was taught that money must be a common medium of exchange to allow the division of labor for modern, efficient industry but it must also serve as a storehouse of value. Having been associated with the printing industry all my life, I know the real value of PAPER and it certainly cannot be considered a dependable storehouse!
It's foolishness to look to special drawing rights (SDR's) as a world currency.

Paul Revere

July 13, 2009

24.79.163.115

Votes: +1

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Audit and Abolish the Fed!

The Fed will do anything to stop an audit, unfortunately we cannot afford to be stopped we have nothing to lose, we need our country and home back and Auditting the Fed is a good place to start!
It is simple, really — the larger the debt, the richer and more powerful the international bankers become. The Federal Reserve is their front organization and it runs roughshod over Congress.

The passage of HR 1207 is not certain and it faces an even more strenuous uphill battle in the Senate. It is, at this point, our only practical hope of auditing the Fed, revealing its numerous crimes, exposing its mega-grand theft scams, and delivering Donald Kohn, his boss Bernanke, and the minions of the international banksters to justice.

SEND A LETTER, TELEPHONE OR VISIT YOUR CONGRESSMAN AND SENATORS INSTANTLY: http://www.campaignforliberty....07home.php

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