U.S. Government Printing Counterfeit Currency (Part 2)
It is accurate to say that 1913, the year the Federal Reserve System (the Central Bank of the United States) was established, was also the year that the U.S. started to counterfeit its own money. The real money of the United States, as established by the Constitution was Gold and Silver coins. By this time we had also printed paper currency that was “demand” money. In other words, these were certificates that certified that, for instance in the case of the $20 bill, “This certifies that there have been deposited in the Treasury of the United States of America $20 in Gold Coin Payable to the Bearer of Demand.” So the paper “demand” money was as “good as Gold.”
For twenty years the real money and the fake Federal Reserve Monopoly money circulated side by side. I believe that this was by design so that the unsuspecting public would get used to the idea of the Fed money and come to believe it was the same as real money. After all, it was designed to look very much like real money, but there was a crucial difference. It was backed by nothing.
Remember that the Gold and Silver certificates were backed, dollar-for-dollar, by precious metals. Not one Gold or Silver certificate could be issued unless it was backed by Gold or Silver. And that is why the politicians hated them so much. They lusted for money that they could print at will, money with no accountability. Money they could use for as many “pork” projects as they wished, and to buy as many votes as they wanted, so that they could get reelected forever – every politician’s dream. And the Federal Reserve System was their dream come true.
Please don’t take my word for this. I have known for years that Federal Reserve “notes” are not real money and are backed by nothing. But I didn’t really expect the government to admit that. So I was surprised to find these words in the Question and Answer section on the U.S. Treasury website:
• QUESTION: What are Federal Reserve notes and how are they different from United States notes?
• ANSWER: Federal Reserve notes are not redeemable in Gold, Silver, or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are “backed” by all the goods and services in the economy.
So instead of being able to redeem your $20 Gold Certificate for $20 in solid Gold, you get to wave your $20 Fed “note” (basically an I.O.U.) in the air and claim $20 worth of all the goods and services in the U.S. economy. Good luck with that.
I believe the timing of the creation of the Federal Reserve System twenty years before FDR’s treasonous and unconstitutional Executive Order 6102 in 1933 (which took the U.S. off the Gold Standard) was deliberate and planned. At the same time as he removed the connection between the dollar and Gold, FDR made it a felony for U.S. citizens to own Gold coins or Gold certificates. If they didn’t turn these in to the U.S. government, they could be fined $10,000, go to prison for 10 years, or both. This was the first time in the history of the world that a ruler had made it a crime for citizens to own their own money. And he did it by Executive Order without the consent of Congress.
The next step in the debasement of our money was the attack on our coins. Starting in 1965, the Silver content of our coins went from 90% to 0%. At least the Romans had the grace to leave 1% Silver in their Silver coins! But they want to give the appearance of normalcy, and they do that in two ways. The coins are actually cheap copper, but they are clad with a nickel-zinc coating to make them look Silver. And, just as most nations have adopted the Roman custom of reeding the edges of coins to show that they are made of precious metal, so did the U.S. when they were 90% Silver. Only now that they are made of junk metal the U.S. government still reeds them. I wonder why?
Today you won’t find any pre-1965 U.S. Silver coins in circulation. If you want some of them as an inflation hedge, you will have to pay a premium for them at a local coin store.
Finally, let me suggest that you study the work of Congressman Ron Paul, perhaps the only person in Congress who truly understands money, the economy, and the Federal Reserve. I particularly recommend that you read his book, End the Fed.
Some people (mostly Liberals, but also a few misguided Conservatives) say that we can’t get along without the Fed. I have two things to say to that. First, we got along just fine without it for 60% of our nation’s existence. Second, the dollar has lost 96% of its purchasing power since the Fed was established. The Fed has been bad for the citizens of the United States. But it has been very good for the private bankers who own and control it.
Most of all, I would like to respectfully suggest that all of you get your heads out of the sand and start to learn about what is going on in your country. Most Americans are content if they have a job and can pay the rent. They don’t realize that, due to the manipulation of our money, we are handing our children a massive debt that they will never be able to pay.
There is only one way this manipulation of our money can end – the way it ended for France in the 1790’s, for Germany in the 1920’s, for Argentina twenty years ago, and for Zimbabwe four years ago: with massive, crippling hyperinflation.
France ended up sentencing its citizens to death for the “crime” of using Gold instead of the worthless national paper money. Germany’s Deutschemark, which traded at 4 to the U.S. dollar in 1919 was at 4.2 trillion to the dollar in 1923. To put this into some kind of perspective, prices doubled every 28 hours during a 20-month period in 1922 and 1923.
The U.S. had to bail Argentina out of hyperinflation that reached 23,000% in one month in 1989. Argentine employers paid their employees not twice a month, but twice a day because the peso was losing value so rapidly. The austerity measures we forced upon Argentina in exchange for bailing them out, including backing all paper money with Gold and reducing taxes and the size of government, are the exact opposite of what our government is doing today.
Zimbabwe, whose dollar was at $1.25 to one U.S. dollar in 2000, has experienced inflation that is impossible to calculate – estimated in the hundreds of millions of percents. At last count, a single egg cost $35billion dollars.
Many politicians say that could never happen here. “This is America. We are special.” How arrogant! Fully 10% of all modern nations have experienced hyperinflation, and none of them had the level of debt of the United States. In fact, this nation, which just 77 years ago when we were still on the Gold Standard had essentially no inflation and negligible debt, now has more debt than any nation that has ever existed, and a dollar that is worth 4 cents compared to the U.S. dollar of 1933.
The Bible tells us in Proverbs 13:22 that good people leave an inheritance for their children and grandchildren. Do you want to leave lands and Gold for their inheritance? Or do you want them to inherit crushing debt and the bonds of slavery? It’s not too late, but we must act quickly.