Abolishing the Federal Reserve Act of 1913

2011-05-25T04:22:00.006-04:00

After the Second Bank of the United States was allowed to expire in 1838, the United Sates was without a central banking system for 75 years; however, due to the great depression, many Americans felt the need for economic reform- this being, a central bank. This central bank would act as a safeguard for liquid assets during a financial crisis. The Federal Reserve Act was signed on December 23rd, 1913, and would eventually cause that of which it was made to protect against. The Federal Reserve (FED) is not only the cause of our current economic problems, but is unconstitutional. For the good of the people, the FED should be abolished.

First off, the Federal Reserve is unconstitutional. The Constitution of the United States of America states: "No State shall make anything but gold and silver coin a tender in payment of debts.” In the beginning, the U.S. dollar was backed by gold and silver; however, in 1971, President Nixon ended the gold standard, thus, making the U.S. dollar a ‘fiat currency’ (Fiat Money as defined by www.merriam-webster.com, is “money [as paper currency] not convertible into coin or specie of equivalent value”) and therefore, unconstitutional.

My second point is, the FED is one of the reasons why our national debt is so high. According to the National Inflation Association, ever since the creation of the FED in 1913, the U.S. dollar has lost 95% of its purchasing power. This doesn’t help considering what our current debt is. The following facts are from the 2010 Inflation Report, provided by the National Inflation Association. The official U.S. national debt is now over 13 trillion dollars; this, however, does not include the debts of Fannie Mae and Freddie Mac (Fannie and Freddie are both government-sponsored enterprises), which are now backed by the Federal Government. Once you include Fannie and Freddie’s debts of $6 trillion USD, the real national debt is now $19.3 trillion USD, not to mention that the U.S. has over $60 trillion dollars in unfunded liabilities for Social Security, Medicare and Medicaid. This brings the total of the U.S. debt to $79.3 trillion dollars- or about 5 ½ times our GDP of $14.6 trillion dollars. Former President Andrew Jackson once said: “I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; in as much as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.”

In continuation with my second point, according the USA Watch Dog's article 'Never Ending Money Printing,' the FED is covertly printing $75 billion dollars a year. This $75bn is used to fund projects that worsen our national debt, such as wars and social services.

Thirdly, how do banks generate revenue if we use a fiat currency? The following facts are from the documentary ‘American Dream,’ produced by The Provocateur Network. Banks make money from interest rates and credit cards; however, the bank only has so much money it can loan you, which is a problem toward profit. Let’s say you want to borrow some money from a bank, but it doesn’t have the money to loan. So, the bank calls up the Federal Reserve and orders a sum of money(covert printing). That sum is then requested from the U.S. mint, and printed. Not only does this cause inflation, but the interest rates are also a problem. According to End of the American Dream's '17 Facts Which Prove America Is a Debt Pig' post, household debt has reached a level of 136%, but why? All (if not, most) loans have an interest fee of 40 – 60%. So, lets say you borrow $500 from the bank, lets add a 40% interest to that. . . And you end up having to pay $700 back. In fact, of the households that do have credit card debt, it's usually around $15.7 thousand USD, not to mention the $887 billion dollars Americans owe in student loans.

My fourth point is that we can't continue this, the only reason we're able to, is because the U.S. Dollar is the world's reserve currency. Our fiat dollar isn't backed by gold, and the continued printing of it makes it furthermore worthless. . . It's only logical to expect it to lose its position as the world's reserve currency, and when that happens, we'll see our country collapse. We study history so we can learn from the mistakes and make sure they aren't repeated. So let us learn from our forefathers, such as Jefferson and Jackson, who both hated banks. Jefferson once said; “If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Finally, what is my solution? I advocate that we abolish the Federal Reserve act. With the evidence I stated above, a Private National bank, especially one under the guise of a Federal one, is nothing more than a tumor on our democratic republic that sees to make us ill with tyranny. We, the people, ought to remind our government that we are still in charge. In the name of Liberty, end the Federal Reserve.

If you believe the Federal Reserve Act of 1913 should be abolished, there's an online petition you can sign at http://www.auditthefed.com/.

Dale Craft

Abolishing the Federal Reserve Act of 1913