End the Fed Rally In Pittsburgh
On Saturday, April 25, 2009, people across the United States rallied together to protest the Federal Reserve System. In Pittsburgh, PA dozens of people gathered at the Federal Reserve Building on Grant Street. Even children and puppies displayed their disapproval and disgust of the private banking cartel:
Why were these people protesting the Federal Reserve System? Here are 6 reasons to consider:
1. It is incapable of achieving its stated objectives: The Federal Reserve System was supposedly created to stabilize our economy. Since its inception, it has presided over the crashes of 1921 and 1929; the Great Depression of 1929-1939; recessions in 1953, 1957, 1969, 1975, and 1981, a stock market “Black Monday” in 1987; our current banking crisis; over 1000% inflation and 98% loss of the dollar’s purchasing power. That incredible loss was transferred to the Federal Government in the form of hidden taxation. The Federal Reserve is the mechanism that has made this possible. After repeated changes in personnel, after operating under both political parties, after experiments in monetary policy, after dozens of revisions to its charter, there has been more than enough time to work out the flaws of the system. The fact is that the Fed’s stated objectives were not its true objectives. Its true objectives were to stop the growing influence of small rival banks, make the money supply more elastic (more plentiful), pool the reserves of the nation’s banks into one large reserve so all banks will be motivated to follow the same loan-to-deposit ratios, and to shift the losses from the owners of the banks to the taxpayers.
2. It is a cartel operating against the public interest: A cartel is a group of independent businesses, which join together to coordinate the production, pricing, or marketing of their members. Like a monopoly, the goal of a cartel is to reduce competition and increase profitability. In 1910, seven men who represented ¼ of the world’s wealth got together to write a banking bill in a highly secretive fashion at Jekyll Island. In the February 9, 1935, issue of the Saturday Evening Post, an article appeared written by Frank Vanderlip. In it he said: “Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion, near the close of 1910, when I was as secretive–indeed, as furtive—as any conspirator…..I do not feel it is any exaggeration to speak of our secret expedition to Jekyll island as the occasion of the actual conception of what eventually became the Federal Reserve System.” He went on to say “If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.” Since its creation, the Federal Reserve has been successful in continually bailing out banks and shifting the costs to the American taxpayer. What else could we expect from a private bank that controls the monetary system of the nation?
3. It is an instrument of totalitarianism: In July 1944, prominent socialists met at Bretton Woods and established the World Bank and International Monetary Fund (IMF). The creation of this world central bank created a common fiat money (money not backed by gold) which required all nations to inflate at the same rate. One theoretician who drafted the plan was John Maynard Keynes. He explained: “I felt that the leading banks would never voluntarily relinquish the then existing forms of the gold standard; and I did not desire a catastrophe sufficiently violent to shake them off involuntarily. The only hope lay, therefore, in a gradual evolution in the forms of a managed world currency, taking the existing gold standard as the starting point.” The IMF is funded on a quota basis by its member nations. Of the nearly 200 member nations, the greatest share of capital comes from the United States, which contributes about 20% of the total. The IMF then exchanges worthless currencies for dollars so poor countries can pay their bills. The IMF and World Bank’s primary objective is to make loans to underdeveloped nations. These loans never go to private industries, but are given to corrupt Marxist dictators. Some examples include Tanzania, Uganda, Zimbabwe, Ethiopia, Vietnam, Laos, Syria, Nicaragua and Poland. Through mass detentions, torture, planned famines, and resettlement programs, these governments have been responsible for serious human rights violations. The IMF/World bank is the protégé of the Federal Reserve. It would not exist without the flow of American tax dollars and the benevolence of American leadership. Thus, the Fed has become an accomplice in the support of corrupt regimes around the world.
4. It is the Supreme instrument of usury: Money is created by the act of borrowing. The act of paying it off causes it to vanish. Therefore, the money supply of the nation is backed by nothing but debt. With that, we can see that the name Federal Reserve is misleading. It is not part of the Federal Government and it has no reserves. Gold and silver in no way back the supply of money. A booklet by the Federal Reserve Bank of New York tells us “Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what else ‘back’ Federal Reserve notes has little but bookkeeping significance.” Elsewhere the same publication states “Banks are creating money based on the borrower’s promise to pay (the IOU)… Banks create money by ‘monetizing’ the private debts of businesses and individuals.” It should then come as no surprise that the Federal Reserve is not interested in reducing debt. The Federal Reserve Bank of Chicago states: “Debt—private and public—is here to stay. It plays an essential role in economic processes ….What is required is not the abolition of debt, but its prudent use and intelligent management.” Usury can be defined as excessive interest. If a person were to buy a home at $100,000 with a $30,000 down payment, $70,000 must be borrowed. If the loan is issued at 11% over a 30-year period, the amount of interest paid will be $167,806. This loan can be justified if we assume the lender actually had something to surrender, that he earned the capital, saved it, and then lent it for construction. The bank, however lends out money it does not earn.
5. The Federal Reserve generates our most unfair tax: Banks acquire assets by the process of Fractional-Reserve Banking. Through policies set by the Federal Reserve, banks are only required to keep 10% of their reserves on hand. The rest of the money can be used for loans. So, if you get a loan, you are getting money that another person placed in the bank for safe storage. If for any reason, there is a run on the bank and customers demand their money, the only way for the bank to produce is to have the Federal Reserve create it out of thin air. This process is inherently inflationary because it increases the supply of money. If the total money supply increases, prices will increase at the same rate after money moves through the system. This is unfair to the lower and middle classes because by the time the newly created money moves through the system, prices will have increased to their market value. Additionally, inflation is problematic to families living on fixed incomes because they will have to give up essential goods they are dependent on. Prices go up, not because of greedy businesspersons, but because the currency has been devalued. Furthermore, inflation could lead to other nations abandoning the dollar as their reserve currency. If this occurs, it will bring a further weakened currency back to our shores. The Federal Reserve is the mechanism that allows this fraud to occur.
Every American war fought since the creation of the Federal Reserve has been financed by money that has been created out of nothing. If this method was not available to policy-makers in Washington, it is likely that all of these wars would have been drastically limited or not fought at all. One can argue for the use of fiat money, if war is absolutely necessary, but there can be no debate for its use in a time of peace. Furthermore, the ability of governments and banks to use fiat money to fund the wars of other nations is a powerful temptation for them to become embroiled in those wars for personal profit or political reasons. What better reason to abolish the Federal Reserve?
For more information about the Federal Reserve and the U.S. monetary system consider watching these videos Fiat Empire, Money Masters, Money, Banking, and the Federal Reserve, and Monopoly Men, and for more information on the Nationwide Protest, visit the official website here.