News - Federal Reserve System

FED Begins Second Century of Financial Domination

December 31, 2013
Jim Merritt

When Congress passed the Federal Reserve Act on December 22, 1913 it handed over the constitutionally mandated responsibility of regulating the nation's currency to a private central bank. Central banks by definition have an exclusive monopoly over issuing a nation's currency. The problem is not necessarily that a private bank is issuing the money but that it has been granted an exclusive monopoly to issue the only legal currency of the United States. There are no competing currencies, just one issued by the central bank that is called the Federal Reserve System. This gives a clear, unfair advantage to the people in charge of issuing the currency. In a free country based on inalienable, human rights this should be thought of as a repulsive practice as best.

The purpose of money is to provide people with a simple method to exchange products and services with each other. One person can sell a product and receive something of value (money) that can be used to buy any other product or service because the money that is given in exchange for the product or service is agreed by everyone in the country to have a certain value. A person that sells oranges can sell his oranges and receive money in return for them and then use his money to buy apples without having to worry if the person selling apples wants oranges or not. It does not matter either way. If the person selling apples wants oranges he can use his own money to buy them from a salesperson of his choice.

It is interesting to note that the Federal Reserve System actually has the power to CREATE money. It is not hard to figure out how a farmer can bring oranges to market or how a wood worker can create a table and some chairs and these items have VALUE to other people. Someone had to give up some of their own time, labor and materials in order to produce these useful produces or services. But have you ever wondered how a little piece of paper that can be printed using up very little material resources and time can have any VALUE? Does a 100 dollar bill really have any more value than a one dollar bill? Does it take the same time and resources to gather 100 oranges for market as one? The answer is an obvious no and using any degree of logic we will find that our money is completely valueless.

The only reason our paper money has any value at all is that the government demands it by law! However, if the Congress suggested a law outlawing the pull of gravity do you believe that gravity would stop working if it were actually passed? If the government passed a law forbidding water to freeze at 32 degrees F would water obey their command? Why does natural law work for some things and not for others? It is obvious that Congress could not change the law of gravity even if it wanted to but it is interesting that people are willing to accept the fact that Congress (or some other group that it designates) can declare that a piece of paper having the picture of Ben Franklin on it has the same value as the work that I am able to perform over several hours. In order for me to have money legally in my possession I must provide a useful product or service to someone in return for some money or be given some money in the form of a loan or a gift from someone else that had previously, legally obtained it. However, the insiders of the Federal Reserve System are legally permitted by law to create money out of nothing and have it be worth the same as the money I have to work for. Does anyone see a problem with this system?

There are two key problems with having the Federal Reserve System in charge of issuing our nation’s currency. First, the Constitution mandates in Article I, Section 8, Clause 5 that the Congress shall have the power to coin money and regulate the value thereof. The Constitution specifically uses the wording SHALL and not MAY. This means it is a mandatory power and thus it is a mandatory responsibility. The Constitution is above any laws that are created by the Congress. If a law created by Congress contradicts what is in the Constitution the Constitution prevails. It is the highest law of the land. The Congress does not have the authority to allocate a mandatory responsibility to another agency such as the Federal Reserve System therefore the Federal Reserve Act is unconstitutional.

Second, the Federal Reserve Act empowers the Federal Reserve System to CREATE paper money backed by nothing of intrinsic value. The Constitution of the United States of America has never granted and does not currently grant the federal government the power to CREATE money. The Constitution only gives the power to the federal government to COIN money and regulate its value. There is a big difference between creating something that did not exist before out of nothing and changing the form of a real substance to a condition that is recognizable by the people of a nation as having a certain value.

The federal government of the United States is only supposed to coin money for people meaning that people can bring their raw gold or silver to a government mint and have the metal formed (coined) into specific sizes and weights that bear a governmental stamp that identifies the coiner and thus gives the coins (money) reliability in their value. People can then use the coined money to purchase products and services and everyone can be assured that the value of the money used in transactions is reliable.

The whole point of this article is that the Federal Reserve System is able to CREATE paper money that is backed by nothing of intrinsic value and have it be worth the same as something of REAL value. Why do Americans tolerate something that can only be properly defined as theft? Most people in this country would be absolutely furious if someone kicked in their front door, proceeded to walk up to the family TV and carry it out with them. They would either attempt to physically stop the burglar if they thought they could or would call the police in order to protect and secure their property. But why don't people get upset when they have to work hard to earn their money while the insiders of the Federal Reserve System can just print it and have it be worth the same as the money they have to work for? To make matters worse the insiders even charge the federal government interest on the money that they created out of nothing that the American people will have to pay for with their tax dollars. People should be demanding that the Federal Reserve System be abolished at once and replaced with a system that is controlled directly by our elected representatives and backed by precious metals as they once were. If and only if this happens will the United States of America start to financially recover from the huge burden of debt that has fraudulently been created over the last 100 years. If the Federal Reserve System is abolished the middle class of this country will recover and prosperity will once again return to America. If not Americans will continue their decent towards slavery and misery.

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance." James Madison

Federal Reserve System News

February 3, 2013
Jim Merritt

This news section will cover issues relating to the Federal Reserve System. We must abolish the Federal Reserve System. It is nothing other than a criminal enterprise that is run almost entirely by foreign banking interests and has been unconstitutionally granted the authority to create the money of the United States that is backed by nothing of intrinsic value. This organization then expects everyone to accept this fraudulent paper money as having actual value. In addition to having a monopoly on the issuance of the currency the people in charge of the Federal Reserve System also have control of the interest rates used by the banking industry and use that to their advantage to manipulate the markets. Ever since the creation of the Federal Reserve System the people in charge of it have always come from key positions at some of the largest banks in the world or positions in the U.S. Treasury. There is basically a revolving door between the Federal Reserve System and government treasury positions and key positions of the largest world banks.

The time for the U.S. dollar as being the world's reserve currency is almost over. Other nations around the world are losing trust in the U.S. dollar and soon the American people are going to be in a position where they are forced to find a different solution. The same people who run the other central banks of the world such as the Bank of England and the European Central Bank also run the Federal Reserve System and it is their ultimate goal to merge all the banks of the world into one large bank and have total control of the currency system used by every country in the world. Although there currently is a World Bank it does not at this time issue the currency for any countries of the world.

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