“I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.“ – Thomas Jefferson Letter to John Taylor (28 May 1816)
Since the founding of this nation a fierce battle has been waged for control of its money. One of the most heated debates in the Continental Congress was over the establishment of a private central bank. Patriots like Benjamin Franklin and Thomas Jefferson found themselves at odds with men like our first Secretary of the Treasury, Alexander Hamilton, who strongly advocated a private central bank charted by the newly founded United States government.
In 1791 the bankers got their way and the first of a series of privately run central banks were charted by Congress. Each of these met with failure and in 1828 newly elected President Andrew Jackson recognized the danger that his predecessor Thomas Jefferson had foreseen and began to dismantle the central banking system. When the bankers utilized their control of the money supply to cause a depression in response to President Jackson’s efforts, Old Hickory declared, “You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out..” And so he did; the people were given back the power to control their money.
The country prospered under this system until the Coinage Act of 1873, also known as the Crime of ’73. This act demonetized silver and set gold as the standard for currency. This folly is a great lesson to those those who advocate the return to a gold standard as a solution to our current monetary problems. This once again limited the availability of currency for trade which benefited the rich, caused unemployment, and began what is known as the “Long Depression”. The bankers, having wreaked havoc on the U.S. Economy, were now poised for their next attempt to seize control of America’s money.
In 1913, despite our long history of failure with private central banking, the Federal Reserve Bank was chartered by President Woodrow Wilson via the Federal Reserve Act. This put the issuance of U.S. Currency directly into the hands of private bankers. Since then, every U.S. Dollar that is printed has interest bearing debt attached to it that we must pay back through taxation. It is no surprise that in that same year the IRS was created to collect on this interest that we now owe to the private Federal Reserve for loaning us money secured by national debt.
The way our current banking system works is called “fractional reserve banking”. This system allows banks to buy U.S. Treasury Bonds(debt) and lend out more money than they have by obtaining it from the Federal Reserve. Because our money is created by debt this means that every dollar printed will be worth less than the one before. Banks have the ability to control the U.S. Economy through inflation and deflation by manipulating the money supply. These decisions to inflate and deflate our dollar are made by private interests with no accountability to our elected officials; we the people have no say and are at the mercy of whoever controls the private Federal Reserve Bank.
When this system falters like it did in 2008 the banks simply print more money further increasing the national debt and restrict lending to control the amount of currency available to the general public. This causes unemployment and economic depression. Those burdened by debt when this happens lose their property to the banks at a fraction of its value. In other words, they are too big to fail…but you and I are not.
So how do we correct this problem and put the power back into the hands of the people? Well, its quite simple. We follow the example of President Andrew Jackson and rout out these thieves. We abolish the Federal Reserve and allow Congress to issue our money, debt free, and spend it directly into circulation taking control of our own currency which will allow the wealth of this nation to be aggregated equally among the people, not into the hands of the few.
Any form of money is controlled by someone. Using the gold standard will only benefit the rich. Private central banking benefits the bankers. The value of money is determined by its quantity. In a democratic society, that quantity should be controlled by the people through their elected representatives. We the people should be the only thing in this country “too big to fail”.