How to dissolve the Federal Reserve system
Reference: The Creature from Jeckyll Island by Edward Griffin Pages 574-588
Hopefully you are reading this in an attempt to better understand what can be done about the Federal Reserve System and the corrupted powers behind it. If you are unaware of any reason or need to abolish the Federal Reserve System I suggest you check out the book referenced above. The main reasons give within that book are as follows:
It is incapable of accomplishing its stated objectives.
It is a cartel operating against the public interest.
It is the supreme instrument of usury.
it generates our most unfair tax [inflation].
It encourages war.
It destabilizes the economy.
It is an instrument of totalitarianism.
I personally found the book to border on the conspiracy theory side of things, and the book even admits to this, but putting that aside it still contains many excellent references to factual events that have happened throughout history. It thus effectively proves it’s points stated above, and exposes what has been through out history, a standard of deception and hunger for power and control. Rather then focus on these deceptions, and abuses I prefer to focus on the solution. I’ve used the mentioned referenced book to come up with the following ideas.
Let me first stress that I do not believe the Federal Reserve is the real problem, rather the fact that congress is not doing it’s job of “coining money” thanks to the truly unconstitutional laws of legal-tender; and thus that is the first, and really the only truly necessary step. I also think the real befit of these steps is that it would force the government into being more fiscally responsible and inevitably would have to be reduced in size; getting it back to what it should truly be.
1. Repeal the legal-tender laws, so that other means of tender can be used, and can refuse Federal Reserve Notes if the wish (though they will likely still be widely used, and maintain most of their value, as they will still be accepted by the federal government for payment of taxes, and by the Federal Reserve for repayment of loans). People general be willing to accept true money (gold, silver, and/or barter) as tender, and everyone will still be required to fulfill their contracts (including the requirement for banks to be able to fully backup any types of receipt money they being to produce through keeping 100% backing (gold, silver, and/or Treasury Certificates) in it’s vault at all times). Along with this Banks will eventually be deregulated, the Federal Reserve System force into competing as any other bank, all contracts based on federal reserve notes will need to be converted to the new coin standard, and basically introduce a free banking market. This will need to be done in steps, and many suggestions for such steps are as follows.
2. Disallow the Federal Reserve from creating any more Fiat Money (with one exception noted latter). They will still be allow to function as a bank if they so wish, but any new notes they produce must (as mentioned before) be fully backed and redeemable at any time.
3. Define the “real” money in terms of precious-metal content. In the past the Spanish dollar was very popular and widely used. The U.S. once defined a Dollar as being 371.25 grains of silver, but we could simply make coins that state the amount of grains of a particular metal the coin contains. The equivalent of a penny could be defined as containing 40 or 50 grains of silver (easily allowing for 1/4 or 1/5 pennies; either way containing 10 grains of silver). Silver is a good choice because of it’s industrial nature, it’s wide availability, and all that really needs to be defined is one unit of currency as the value of the rest will then be based on that particular unit. Gold will then be used as an auxiliary monetary reserve which can be substituted for silver, but not at a fixed price ratio. Rather the value of Gold would be set by the free market, along with the value of other precious metals and other materials.
4. The US Mint in the past allowed free coinage, and this practice would need to be restarted. Basically anyone would be allowed to bring their gold or silver to the mint, and for a nominal fee be turned into the new coin standard. This will be the beginning of the circulation of these new coins.
5. The National debt would be paid off with the Federal Reserve Notes collected through taxes. After all the Federal Reserve basically lent the government these Federal Reserve Notes to begin with, and thus should be required to accept them back as payment (and not just for the national dept, but for all loans they made). Despite the unconstitutionality this may bring up, you must realize that the dead has already been done as the Federal Reserve system is technically unconstitutional to begin with. The National debt, however, is not entirely owed to the Federal Reserve system, and in these cases they government bonds will still be honored with new Federal Reserve Notes which will need to be printed (this is the exception noted before); however, as mentioned before anyone will be allowed to reject such payment, but would be foolish to do so as these remaining reserve notes will eventually be reimbursed with gold and eventually any remaining bonds will be worthless as the Government will declare non payment for all outstanding bonds (that’s the risks of such investments).
6. Once the majority of government bonds have either been repaid or the time to redeem them runs out, the Federal Reserve Notes will then be redeemable for gold and silver. The US government at various times has horded gold stockpiles, and even made it illegal for the public to own gold, and the time to rectify this problem is long over due. The exchange rate of Gold to Reserve Notes will be based on a determination of the total amount of gold in the governments reserves (excluding military stockpiles) to the ratio of total Reserve Notes in circulation. There will also be a nominal fee related to this exchange as to prevent the total elimination of the governments stockpile. There will be a reasonable time limit as to how long Reserve Notes can be exchanged to prevent them from remaining in circulation. It’s expected that Banks will offer (for a fee) to make the exchange for you along with there stockpile of other reserve notes. Much of this exchange may end up being done electronically between the banks and the US mint, but eventually the actual God would need to be transferred to the appropriate people and banks.
7. Considering the past abuses of fractional banking systems we will still need some regulation to protect the consumer, but they should be simple and minimal, such as require that 100% of all checking accounts balances be fully backed by the banks reserves (even if it’s simply an electronic representation of assets held elsewhere). Savings accounts could be treated differently as long as the depositors understand that the bank is planning to lend out some if it (maybe up to 60% of the savings reserves could be lent out), and that if the bank goes under they will likely only get back a small percentage of their savings (thus there may be restrictions on how much can be withdraw at a time). Other laws would need to be put in place to prevent abuse, but we must avoid the temptation to recreate the bureaucracies and practices that brings about the creation of Central Banking Systems.
8. The Federal Government would also be forced to discipline it’s spending habits, and thus would require it to reduce or even eliminate it’s social programs. If you find this idea to be unacceptable, you need to consider that many of these social programs are only helping to further economic problems. No solution to our economic problems is possible under socialism, and thus the government should be limited to the protection of life, liberty, property, and civil rights. Personally I believe that the only laws necessary within the federal government are those that protect the rights of others, and if any social programs are desirable (such as public schools), they should be left to the local State and City governments. I also find it interesting to note that the Federal Reserve Act came in the same year as the 16th amendment which allows for the Federal Income Tax, and personally believe the two go hand in hand. I’m not necessarily suggesting that it be done away with, but it certainly needs to be greatly simplified and greatly reduced, as without all these social programs, and the interest payments on the National dept, the Federal Government would only need half the of it’s current revenue. Also with simplifying government all together should allow for a further reduction in dependence on Income taxes. Not to mention the personal freedoms that have been slowly eroded away over the last couple hundred years, and the every growing danger of a New World Order that threatens to put the entire world under a socialistic government that is majorly backed by the US government.
There will without doubt be some price to pay in this transition. According the book reference at the beginning of this document, as of 1993 the ratio of the new dollars (backed by 371.25 ounces of silver) to the number of federal reserve notes in circulation would be around .0047. In other words it would take about 213 Federal Reserve Notes to buy one of the new dollars. Of course the longer the Federal Reserve system is allow to continue the worse this ratio will get. So the question now is how we can protect ourselves so that this change over doesn’t bankrupt the average citizen? Fortunately it sounds worse the it really is, because the new dollar would have more purchasing power, and hopefully it will be close to the tune of 213 to 1 (but probably not quite that good). It will however be a big inconvenience to make the switch, such as refitting vending machines and simply getting used to the new currency. Fortunately these side effects would be temporary, and greatly offset by the new found stability of the new currency (once everything and everyone has settled into the new currency). Granted there are still forces that can cause inflation, but historically speaking, a standard based on silver is much more stable then the current fiat money system we have in the many nations of the world today. It’s purchasing power will be determined by natural laws rather then subject to the whims of politicians and bankers attempting to manipulate the economy for personal gain. With time we could actually expect to see a trend towards deflation as new technologies lower the costs of manufacturing.
For a historical contrast consider the following:
What cost $1000 in 1800 would cost $567.40 in 1913.
Also, if you were to buy exactly the same products in 1913 and 1800, they would cost you $1000 and $1762.41 respectively.
What cost $1000 in 1913 would cost $17902.71 in 2002.
Also, if you were to buy exactly the same products in 2002 and 1913, they would cost you $1000 and $55.86 respectively.
What cost $1000 in 1823 would cost $725.02 in 1913.
Also, if you were to buy exactly the same products in 1913 and 1823, they would cost you $1000 and $1379.28 respectively.
Information obtained from the following web-sights:
There are some steps that can be taken by individuals to minimize negative effects, such as the possible implications to the stock market, weak banks would likely fold under without the Federal Reserve there to bail them out (as has been done time and time again), businesses relying on the easy credit will likely go under, unemployment my worsen (but that’s likely to continue anyway as our current system continues to destory the economy and confiscate wealth), but in the end we will see the natural law of survival of the fittest leave behind only the truly strong who can best help us to rebuild our economy based on a much more stable system. So what can we do to protect ourselves? There would have to be advanced notice of this change to give the general public time to prepair. Such preperations could be as follows:
Get out of debt; however it’s resonable to have a mortgage on your home, or a bussness loan; however such things a consumer dept (credit cards, etc.) or other things that are not backed by easily sellable assets will only help to further your complexity durring the transision to the new money system.
Pick a good bank. Personally I prefer credit unions, but the important thing to check is how at risk are your assets if the institution goes under.
Diversify your investments. Any wise finatial adivser will give you this same advice, and many are now starting to even suggest that some Gold is a good idea. Pay particular attention to industries that do well durring hard times, and those who you have personal knowlage of. Do some reasurch, and if all else fails, diversification is your best defense against total loss. I personally belive that most stocks are way over priced in today market as you’d be luckly to get a few pennies for every dollar invested if the company were to compleatly liquidate (espeically those with long histories of good returns and gains in stocks).
Invest in coins made of gold and silver, but again do some resurch, expecially if you plan to invest in those with high numismatic values, or other comodities such as art, precious stones, or other collectables. Such things require a lot of knowlage to avoid be taken advantage of.
It may aslo be a good idea to keep some cash on hand. You should have enough savings to support your family for some time if you happen to loose your job. Food storage can be a great help in this respect as well, and especially if things get bad enough that bartering becomes a perfered methond of exchange.
One cannot be expected to store up all these coins and food over night, nor pay off their depts at the same time. My suggestion is to start with what you can, and slowly build up what you can. Obviously it’s more important to pay off dept at 9% interest then to put money in a savings account at 2%, but finding a balance between the two is likely the key. personally I’d be more concerned about the dept, but still try to have some savings. Everyone’s situation is differnt, and thus you need to do what you fill is best for your situation. Just be sure that what ever desision you make, it should be an educated one, and that advice can hold true for many decision you make in life. In your cursades to become educated, you’ll also find it helpful to share your knolage with others as it can help educate the general populus while reinforcing what you’ve learned. Not to mention that having a following can be of great advantage not only to yourself, but to those who you follow or who are following you. The only caution here is to avoid infomation over load, so pace yourself and keep in mind that most thing worth doing take time and effort.
We go into our present mess through politics and we must get out the same way, but getting out is a lot harder then getting in. Be careful to not be used by politics, but rather use them for the betterment of society as a whole. Much of our problem was created by greed, and being greedy will only help to expand the problem. Vote for those who support your ideas (again make educated decisions), and avoid those with seming botomless pockets. I would suggest that regarldess of political party, regardless of personal feelings, and regardless of ideaologies, the most important factor is to elect those who are of the highest integirty. Someone with high integrity will be much less likely to be bought or sold like so many of our current politisons who go to office with there own agendas in mind. The only way we can counter the endlessly deep pockest of the political power that bee, is through our own efforts to educate ourselves and those around us. Political parties are always controlled from the top, and major parties are controlled by the very forces we must oppose. It is imperative that candidates maintain there integrity, and independence form control; otherwise they’re doomed to be tainted by the very forces they are trying to defete.
There are 435 Representativs and 100 Senators, but to have a majority we only need 268 of these people. In reality if we got even close to that figure we likely would see a very strong following that could eventually consume the political agendas of others. We’d only need to influance 100 congressional districts every two years, and before long the entire political landscape could be changed.
– Posted By Spaldam