Thursday, September 3, 2009

America without the Federal Reserve

Barter and Trade:

What would you do if you woke up one morning and a gallon of milk is $80, gasoline is $100 a gallon, and a pound of hamburger meat (if you could find one) is $50.

What would happen when you arrived at the grocery store and all the shelves were bare?

On the way home, you stop at the bank and there are armed FEMA guards preventing you from entering or the banks are simply locked up with a closed sign?

I KNOW! It sounds ridiculous and like some sci-fi end of the world made for tv movie...BUT.. It would not be detrimental to you or your family to have a supply of goods stored in your household for just such a purpose...

Silver, Whiskey, Tobacco, the concept of trade and bartering, and Gold are pictured above. I think it would be a good idea to have a small to moderate amount of each in an accessible area.
I personally do not smoke or drink whiskey, but other Americans do... Perhaps while America is scrambling to figure out how to get back on a gold standard or decentralize the banking system I could trade a bottle of whiskey for a bushel of fresh fruit or vegetables with a neighbor in order to feed my family...

America without the Federal Reserve:

"Since the Federal Reserve System was brought into force into 1914, the United States economy has grown at a slower pace than it did before 1914, despite significantly improved productivity. The rate of inflation has been substantially worse since the introduction of the Federal Reserve, despite the fact that the Federal Reserve was around during the greatest period of deflation in US History—the Great Depression."

America thrived before the Federal Reserve or Central Banking was imposed upon it's citizens...

For a history on money or banking, please check out the movie 'Moneymasters' which can be viewed for free/online:

For a quick overview on the Federal Reserve and inevitable hyperinflation...check out Hyperinflation Nation:

What does the Constitution say about currency?

In Article I, Section 8, Clause 5 and Article I, Section 10, Clause 1, the Constitution adopts silver and gold coin exclusively as the money of the United States.

All silver and gold coins may be legal tender for the values of silver and gold they actually contain, and Congress has the authority to, as the Constitution says, regulate the value according to these principles.

In Article I, Section 8, Clause 2 and Article I, Section 10, Clause 1, the Constitution prohibits explicitly or implicitly the emission of any form of what was called in those days "bills of credit". Today we would call that paper money.

Article I, Section 10, Clause 1 also disables the states from imposing on unwilling creditors anything but gold and silver coin as a tender in payment of debts — which, of course, reflects the inherent disability of Congress to declare anything other than gold and silver coin a legal tender.

Article I, Section 8, Clauses 1, 2, and 5; Section 10, Clause 1; and the Fifth, Ninth, Tenth, and Fourteenth Amendments, if properly construed, would deny Congress and the states any power to seize people's gold or silver, except through taxation.

What happened to all of the gold?

" The Civil War was the beginning of the degeneration or the devolution of the American Constitutional monetary system. In 1862, the Congress submits the first legal tender paper currency, the greenbacks, and it maintained those as an irredeemable currency until the 1870s." -

A sidenote about Lincoln:

Lincoln, whom Obama publicly praises and admires, Northern War of Aggression had to be funded, so he made up 'Greenbacks'. Despite what you learned in High School, the Civil War was fought because the Confederate States were being taxed to death, did not see their fair share of tax dollars being spent the same in the South, and they believed in the Constitutional Ideals of Secession...Which is what we Americans did when the British were abusing us..We broke away and founded America...The Civil War was not fought over slavery..Which was ending in the South...Which every other country in the Earth had ended peacefully through financial compensation...And Abraham Lincoln declared publicly that he did not wish to Abolish Slavery and he desired to round up Blacks and slaves and send them back to Africa!...So that being said, let it be known I am not a big fan of Abraham Lincoln, he was immoral and a manipulative Dictator..But that is a topic for another day...

1913- The Federal Reserve (Central Banking) and the Income Tax is established.

- Congress declared Federal Reserve Notes legal tender for all debts, public and private, and rescinded the requirement that those notes be redeemable in gold coin. Roosevelt, seized all the gold coin in circulation and nullified all public and private contracts that called for payment in gold.

1965- Congress terminated coinage of Constitutional, that is silver, dollars, and authorized the so-called clad coinage.

1968, Congress terminated redemption of any form of United States currency in silver coin and, in 1971, [President Richard M.] Nixon and [Treasury Secretary John B.] Connally repudiated the redemption of Federal Reserve Notes internationally.

In 1985, Congress authorized the minting of new silver and gold coins..but do not circulate as legal tender..

The Federal Reserve is a private bank..It is not a public or Federal Government backed program. Throughout history central banking systems lead to strife, a failing currency, and they are even so bold as to fund both sides of wars in order to maximize profits. The Federal Reserve charges the American Fed. Govt. interest to borrow American currency to distribute to banks...

For more information please watch Moneymasters and read 'End the Fed' by Ron Paul...

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