This goes out to all you undereducated Ebaumers. Listen up you need to understand why we are about to begin fighting a revolution to free the proletariat. It will not be televised or even recognized. It will not be glorified or talked about for generations to come. The road we must take will be dark and unknown; nonetheless it is a road we must travel.
The monetary system
This is a subject that is virtually unknown or misunderstood by the majority of working class Americans. Let me break it down for you. Prior to 1913, America was a free country the people had control over the monetary system through their government and the treasury. As provided by the U.S. constitution congress had the power to create money interest free. Up until 1913 banking investments were based off speculation. Meaning that a few people who were in the know determined the interest rates. These people in the know happened to be bankers. A few of the biggest banks were able to create a run on the bank because of this. Because banks are allowed to practice fractional reserve banking, they can take all of their customers money and loan it out at interest and thus make more money. Because they are leveraging this money out, if at any one time all their customers want to withdraw their savings they will not be able to pay out. A run on a bank can render it insolvent and unable to refund the peoples hard earned money. This unethically manipulated speculation created by the biggest banks was used to create chaos, which ultimately lead to a congressional act. Though many congressmen at the time new the dangers of a centralized bank it did not matter. A few congressmen working with the banks quietly passed the Federal Reserve act through Dec. 26th 1913 while many other government representatives were at home with their families for the holidays.
With the creation of this new bill the government was then able to print money as it needed to insure that even if there were mass runs on banks across the country the people would not lose their money. This ability was nothing new; in fact it was implemented many times before. Its called fiat money, or money thats value is determined by decree. The determined worth of the dollar bill in your pocket is based of the amount of them in circulation. If you print more then the supply goes up and demand goes down and visa versa. Because money was allowed to be printed freely, they had to make sure that they did not print too much. This would cause over inflation and eventually people would start to find out that their money is becoming worth less and less. This has happened in present day Zimbabwe and pre-Hitler Germany as two extreme examples. In order to protect the Americans monetary system they implemented a central bank and gave them complete control over the money. The Federal Reserve also known as a central bank is an unaudited and unregulated private business made up of 12 private investors who are suspected to be some of the worlds largest banks. The American people are not allowed to know who these investors are. However they are in control of printing our money. To protect its self from over spending the government (instead of printing the money its self, borrows it at interest from the federal reserve) This then makes the American people responsible for the debt and thus required to pay it off by paying a tax.
In 1913 the 16th amendment was passed which gave congress the ability to collect an unconstitutional unapportioned tax on the people. This was implemented in order to pay off the debt that the government accrued by borrowing money from a private bank, which is the Federal Reserve. 51% of our national debt is owed directly to the Federal Reserve. The IRS collects over 900 billion dollars in revenue each years and this goes directly to paying back the Federal Reserve loan. Your hard earned tax dollars go directly to servicing the debt contrary to what many IRS agents and government officials would have you believe. Not one cent of the money generated from the federal income tax goes to paying for roads, schools, and infrastructure projects. State and local taxes pay for this.
Now here is the worst part of the whole situation. Because our money is created when the government takes out a loan from this bank. Each dollar is attached to a certain amount of debt. Remember that the loan is to be paid back with interest. The amount of money created cannot possibly cover the amount of the entire debt. Therefore each dollar bill you own is attached to a certain amount of debt. This fact alone enslaves us. Plus the entire system is unsustainable. The monetary supply exceeds the monetary base. More money must be created to pay more debt, which then results in more debt. The Federal Reserve was also given the authority to artificially adjust interest rates. This means that when they see a potential recession they loosen us spending by lowering interest rates and making loans easier to come by. When they feel the economy is becoming too hot They then raise the interest rates and tighten up spending. The entire business cycle is a result of this man made system based on artificial scarcity. In a true free market economy interest rates adjust themselves naturally. The ability for this private bank to manipulate the business cycle as they please also gives them a lot of control. If they want to acquire a large part of the market they can then create a recession and buy up larger and larger shares of the market. We saw this with the government bailout. As many banks had leveraged their money out, a severe down turn on the market lead to their insolvency. Most of these banks were then bought out by bigger banks as well as the federal government acting directly from orders from the Federal Reserve which pushed for the bailout and warned a great depression could ensue if they didnt bail them out.
This private group of banks which controls our monetary system unconstitutionally influences and directs policy as they wish. Because the government has to go to the bank for its spending money, the bank can and does decide whats best for the people rather then the people deciding themselves.
There is a reason why the constitution demands that we only use gold and silver as legal tender. Its because when you put a few men behind closed doors in charge of the money system you have just allowed yourself and your republic to become ruled and controlled.