We are at a crossroad here in the United States. Our currency is backed by nothing more than its reputation. Those in control of policy have been corrupted by the grace and power bestowed by the never ending supply, manipulated by greed and coercion, infiltrating every orifice of a nation once proud of its independence. We have allowed ourselves to be taken hostage, our future dependent upon the whim of those that derive their essence from greed and power. All fiat systems have failed, our current scenario is destined to do the same. A crisis has ensued and this once isolated policy is now globalized under the faux World Bank. We must recognize the futile existence of fiat currency and build a more sustainable system, capable of managing global trade, without infringing on a nations sovereign status.
During the winter of 1910, the Federal Reserve System was conceived by a handful of powerful Bankers. After several attempts, the Federal Reserve Act was passed in 1913. With the institution of this act, the US Monetary system was effectively handed to private business. “Let me issue and control a nation’s money and I care not who writes its laws” (Mayer Rothschild, 1743-1812) Simple in words, this statement has had a very real effect on Nations of the world. Those in control of finance understand completely the ramifications of a fiat based currency, a system solely dependent upon faith and confidence of the people.
Those that wield its fabrication, maintain the ability to manipulate and dictate policy within any environment that wishes to partake. In the creation of debt, tangible wealth is transferred to those that create the finance, manipulating the labor of the people for profit and control. All money creation in this system is tied to servitude of the citizens and repaid via taxes. Fiat currency is a method to control a populace by financial methods. Its fault lies in its uncontrolled process of debt creation, inevitably leading to a hyper-inflationary event and self-destruction.
Congress is capable of spending more money than is available in tax revenue each and every year. This is possible with the issue of U.S. Treasury Bonds. A treasury bond is simply an IOU. The problem with this transaction is that the US Tax payers are on the hook for the newly created financial instrument created out of thin air. After instituting a Treasury bond, congress then takes the bond to the Federal Reserve, there money is created. A check is written and deposited in the governments account. These funds are issued to government employees and dispersed into various Banking institutions as deposits. Once the deposit is made into a banking establishment, the funds can then be used in the loan process. But, not at a dollar to dollar ratio, according to the design of banking policy, only ten percent of that initial deposit must remain in holding as reserve. For every one dollar of savings nine dollars can be created and loaned to another customer. Through this process our government is capable of spending far more than it can possibly collect in revenue from its citizens.
The cause and effect situation with this policy is debt perpetually grows as the market functions. Every dollar created turns into ten dollars of debt, serviced by interest, paid to those original creators of the private institution known as the Federal Reserve, by the current and future tax payers. The fundamental of this process has crept into every financial aspect on Wall Street. Devising financial instruments, creating value where none lies and profiting from money that never existed until these products came into fruition. By granting power to create currency to a private institution you invite “absolute power to corrupt, absolutely.” (Lord Acton)
As currency continues to be created as debt, paid with interest, another interesting thing occurs. Slowly, the value of the currency weakens, causing prices of goods and services to rise. To economists this process is known as inflation. In actuality the complete control of financials by a select private institution is simple usury, another form of interest charged to the public inversely. Instead of paying the premium or interest as a percentage tacked onto the loan up front. The currency is slowly devalued by dilution, (continued money creation from debt) causing more dollars to be needed, to purchase the same goods or services previously. Eroding the value of earnings and placing a larger percentage of profit in the originators hands.
What becomes profoundly astonishing in this fiat currency banking system is the wealth created from what amounts to nothing more than ink to paper. Money or currency is created with the stroke of a pen, backed only by faith and confidence of those willing to rely on its ability to barter for exchange. This procedure is used to take possession of actual tangible items, claiming title and ownership through the fictitious creation of paper currency masquerading as valuable.
Gold and Silver are real money, considered unique and valuable since the dawn of time. Used as currency as far back as 560 BC. Precious metals have been used as a monetary measure for thousands of years. Fought over by nations and hoarded by kings and peasants alike. The rare nature and unique quality of these metals places them in the ideal position to be a foundation of measure for a monetary currency. Even as the metals relate in today’s society, it is not dollars for gold and silver, but gold and silver for dollars. This is clear by their use as leverage against the man-made inflation. As banking policy creates more money, the value of gold and silver will continue to rise if measured against the ever inflating fiat currency.
It is necessary that a system of finance be available to transact and exchange goods and or services. But allowing the control and fabrication to be in the hands of a select few only leads to a transfer of wealth. Giving those with control the power to subdue and obtain equity from the sweat off the brow of our fellow man. The situation is nature at work, the predator stalking, devouring the prey. With superior technology, knowledge or an advantageous position, human nature finds its place and does the rest. It is our instinctual genetic makeup to survive, that causes a domineering position in one class. It is up to society and evolution to develop the strategy and means to overcome. Then again, the sheer gluttony caused from fiat currency will eventually topple from its own weight.
Works Cited
G. Edward Griffin “Creature from Jekyll Island,” “A second Look At the Federal Reserve” American Media, Westlake Village, 2004
Silver News Today 
February 16th, 2011 → 6:33 pm
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