Tell me again, why shouldnt we abolish the federal reserve?
It is important to understand that the FED does not actually print money, All U.S. currency is in fact printed by the Bureau of Engraving and Printing (BEP). The Fed, rather is the master distributor of the money, which they "create" this way by executing a simple computer entry in their accounting system.
Despite what many people think, the Federal reserve is NOT an agency of the United States government.
They are no more a part of the Federal government than is Federal Express. The Federal Reserve is actually a privately owned corporation, owned by a secret group of international bankers. In essence, they are a private banking cartel who have a total monopoly on "creating" money for the U.S. government. The Fed's only real agenda is to turn a profit and they do so at the expense of every single man, woman and child living in the U.S.A..
If you ask the average person you meet on the street, What is the Fed ? and What do they do ? Most (if they have any idea at all) will say they think the Fed is an agency of the U.S. government, and that they serve to help stabilize our economy by controlling interest rates and providing liquidity when needed.
Nothing could be further from the truth. They really have 1 agenda and 1 agenda only. That is to turn a profit.
They do this in 2 different ways:
They manipulate interest rates to create "boom-bust" cycles which always work out to the advantage of the hidden elite "insiders". . .
as they know exactly when our economy will boom, and when it will bust.
They increase the money supply by "creating" money through the incredibly lucrative "sweet heart" deal
they've had with the U.S. government, ever since the Federal Reserve Act of 1913 was signed into law.
Accordingly, when the U.S. Government needs money, they go to the Fed to borrow the money. The Fed calls the Treasury and asks them to print x amount of Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the Fed 2.3 cents for each note. The Fed then lends that money to the government at face value plus interest. The government has to create a bond for the loan amount as security for the loan.
Now the government owes the private ownership of the Fed the face value of the bonds plus interest. In other words, the Fed earns interest by "loaning" that money to the U.S. government. Imagine that... they earn interest by loaning money which is not even theirs to loan...
which they just created out of thin air.
So essentially every bill they "create" has a debt associated to it, and if the debt is not paid, what do you think they do ?
That's right. They create more Federal Reserve Notes so they can loan more to the government (actually exchange for U.S. bonds)
in order to pay off the debt, thereby growing the national debt even more.
This is what we refer to as a debt monetary system. In other words, our currency has a debt attached to it before we ever spend any of it. We can never get out of debt because it is a self propagating, vicious cycle, that will ultimately end with the complete destruction of our currency and bankruptcy of our nation.
They can NOT be audited and do NOT answer to the President or anyone for that matter. The president appoints the Board of Governors but has no control over their secret activities. Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported.
Not only is the Fed exempt from tax, but 100% of the income tax that Americans pay, goes right to the Fed to pay off this debt, which they perpetually create. It is no coincidence that the Federal Income tax law was enacted in the same year as the Federal Reserve Act. It was needed to finance this scam. Prior to this, the U.S prospered and the government paid it's bills with out needing revenue from income tax. But that all ended with the enactment of the Federal Reserve Act of 1913. From that point forward, income tax was required to pay for the debt owed to the Fed for interest on the money they create and loan out to the U.S. government. This is just beyond insanity.
"I believe that banking institutions are more dangerous to our liberties that standing armies"
-Thomas Jefferson
In accordance with Thomas Jefferson's views, Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency.
@Truth man hated by liberals: Actually, gold retains its value. There is enough gold already alone in the united states to support our economy, but because of the deficit, we cant enact the standard, as of now. That is a false statement made by those who support and gain from the FED, and to put it simply, not true.
Long-term price stability has been described as the great virtue of the gold standard. The gold standard limits the power of governments to inflate prices through excessive issuance of paper currency. Under the gold standard, high levels of inflation are rare, and hyperinflation is nearly impossible as the money supply can only grow at the rate that the gold supply increases. Economy-wide price increases caused by ever-increasing amounts of currency chasing a constant supply of goods are rare, as gold supply for monetary use is limited by the available gold that can be minted into coin. High levels of inflation under a gold standard are usually seen only when warfare destr
oys a large part of the economy, reducing the production of goods, or when a major new source of gold becomes available. In the U.S. one of those periods of warfare was the Civil War, which destroyed the economy of the South, while the California Gold Rush made large amounts of gold available for minting.