“On the foggy evening of Nov 22, 1910, a train pulled out of the Lackawanna Railroad Station in Hoboken, NJ, and began its winding path to Jekyll Island, GA. At the time, no one paid much attention to its departure, unaware that it carried some of the most powerful people in the United States on a course for the greatest fraud ever perpetrated on the American people. The train carried its passengers to a secret conference, where they would forge together the first draft of the Federal Reserve Act of 1913.”
The men were to act like they didn’t know each other and first names only were used. If asked, they were to reply they were on a hunting trip. One man, who had never fired a gun in his life, brought a shotgun on the trip to ensure the trip would appear genuine. One of the men later stated that Congress would’ve never passed the bill if they knew these men had drafted it. The men, at the time, represented approximately one-quarter of the wealth of the entire world. (Napolitano, 2010)
As people of the United States of America, we choose to believe our monetary system is acceptable based on the consistency within we’ve come to know throughout our living years. A person today can’t image life without the current system we have in place. Before the Federal Reserve, thousands of currencies were used throughout this country. It wasn’t until The Fed came to fruition that the dollar bill came to be the lone, single currency of the United States. The Fed was created to stabilize the business cycle, control inflation, maintain a solvent banking system, regulate the financial system, and more. (Paul, 2009) The Federal Reserve spokesmen would be the first to tell the American people that they do it all and do it well. One could argue that the Fed doesn’t hold its end of the bargain for doing any of these tasks well.
Let’s dive deep into the criticisms of politicians across the country. Are we, as American citizens, in fact, the land of the free?
While I’ve noticed some positive influential feedback regarding The Federal reserve, I’ve mainly encountered skepticism and criticism. Several folks believe that we have many options to turn to for a newer currency that will represent this country in a more positive light. Some of the options available are crypto-currency, bitcoins, or even just strictly going back to silver and gold. Business could be conducted in a variety of different manners to enlighten the positivity of this new monetary system. I personally feel like there are many different alternatives that would provide a clearer, less political system that would be easier to maintain than what is currently in place now.
Ron Paul, who has been speaking and writing about The Fed for 30 years, wrote a book called “End the Fed,” which was published back in 2009. He got the idea for this book from a slogan that was chanted on a few of his campaign tours and conventions across America from various American’s chanting “End the Fed!” Why would anyone want to end the first centralized bank that finally lasted more than 20 years? The reasons are several and for good reason.
The first form of paper money ever used was called the continental. It was issued because Congress was low on gold and needed the financing to fight for its independence from England. This was the Revolutionary War. Our founding fathers rejected the proposal to grant Congress the ability to “emit bills of credit.” This basically said that Congress couldn’t make anything except coins, but then Congress had the right to emit bills of credit because it had the right to borrow money. Napolitano says, “Two opposite opinions by the same Court can only mean that someone lied or someone changed his mind on a matter of the highest importance, considering the Constitution was not rewritten between 1869 and 1870.” This was a result of when money was printed for the Civil War and was reflective of the 1870 Legal Tender Case. Since the Fed delegation was created in 1913, the dollar’s value decreased by 93 percent. From 1789 to 1913, without a central bank with real power, the dollar’s value increased by 13 percent. (Napolitano, 2010)
The only United States President to issue an Executive Order beginning the process of abolishing the Fed was John F. Kennedy, and he was dead three weeks later. Potentially, the reason JFK wanted to abolish the Fed is because it can create money out of thin air. If you or I were to write a check and not have the funds to back it up we’d go to jail. This isn’t the case with Congress and the Federal Reserve. (Napolitano, 2010) When Congress runs out of money they write a check to the Federal Reserve. The Fed creates this money and provides it to the United States, which usually causes inflation to rise. When inflation rises the taxes on goods rises. When taxes on goods rise it impacts the middle class and the poor the most. The owners of these multi-billion dollar industries can charge more per item, which only increases their wealth. The rich get richer, per se.
Thomas Jefferson foresaw this two hundred years ago, when he said: “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered.” (Napolitano, 2010)
There is essentially nothing “federal” about the Federal Reserve. The government doesn’t own a single share of stock in the Fed. Considering the US dollar is the currency of the world and the Fed controls the dollar, one could argue that the Chairman of the Fed is more powerful than the President of the United States. I’d argue that fact simply because the Fed can hand us semi-trucks full of cash at the snap of a finger, knowing that it bears no impact on them other than more dollars in their pocket. None of the money they loan us is taxable because they are technically not part of our American government or even our country for that matter.
In conclusion, after reading Ron Paul and Judge Andrew P. Napolitano’s books: I feel as though one possible way to end the Fed would be to use national banks at the state capitols whom have the power and monopoly over the banks and finances of that state. This would make each state responsible for their own actions. While a centralized bank provides some stability in a sense, do we collectively agree that the current setup in place is the best solution?
“The American dollar today is worth just 7 percent of what it was worth in 1913, when the Fed was established to stabilize it.” (Napolitano, 2010)
Today we have a system that has some perks, but what seems to me like mostly flaws. Unnecessary war could also end, as the government wouldn’t be able to rely on money created out of thin air to finance it. This would greatly impact the importance of going to war in the first place, as we would have to ensure we had all the financing to back it up before taking a stand. We’d have to ensure, also, that our means of going to war was justifiable and could be backed financially to where it wouldn’t directly impact the dollars of our American citizens. I’m not saying all war is irrelevant, but having a better monetary system in place that holds our government more accountable would be more acceptable than what we have now. Do we believe this means of monetary action is the be all, end all to our country’s financial issues? Or, in fact, are there alternative means of resolve right under our nose?
Read for yourself and determine why you feel our country is in such a financial crisis. There are several changes that need to be made, but first and foremost our monetary system needs a complete overhaul. Not only will it benefit our countries financial means, but it will also provide more stability for the American people overall to have more financial freedom and potentially pay less taxes.
Napolitano, Judge Andrew P. (2010), Lies the Government Told You: myth, power, and deception in American history / by Andrew P. Napolitano
Paul, Ron (2009), End the Fed / Ron Paul. –1st ed.