During Nixon's presidency, our country was ready for it's own foreclosure. The many years of fighting in Vietnam had left us completely broke, with citizens taxed through the roof and not an extra dime left to give. A tax hike was unthinkable. However at this time, the dollar was tied to gold. The Bretton Woods agreement in 1971 moved to permanently break the bond between the US dollar and it's gold backing. Why would they do this? Well, it essentially removed the very last obstacle in the way of the federal government from literally having an unlimited budget. They could now spend whatever they pleased. Print and print and print, even with no gold left to back it. This inflationary system was genius. It gave the government the ability to now pillage the people's wages and savings without needing a single congressman to even donate a signature. Want another 300 million in the budget for defense spending? Don't use tax money, just call the Federal Reserve and have them print it. Give them a briefcase full of official looking paper (U.S. Treasury Bills) and they'll hand back bags full of freshly printed currency. Take that paper and deposit it in the bank and write checks against it. That's it. Did you need to pass a tax hike? Do the people even know or care about what you just did? No and no.
Ask yourself this question- why is no one in this country allowed to print their own money? The obvious answer being it would make money worthless. Everyone would be printing as much as they wanted, so it would really mean nothing. However, this is exactly what banks in our country are legally priviliged to do. Let's say you are a bank. I deposit $10,000 into your bank. You are legally allowed to lend out 90% of it, or $9,000. So that's what you do that same day, you loan it out.
What if I come back the next day and say I need to withdraw $9,000? Do you say "Oh, sorry sir, that money's been lended"? No, you say "Fine, Mr. Frombach. Here is your $9,000." Okay, so wait a second, you just loaned my $9,000 to someone else yesterday, so where did this $9,000 you just handed me come from? Here is the eureeka moment- they created it. When they loan your money, they aren't actually loaning your money. They use your $10,000 as a sort of momentary collateral. They digitally create $9,000 new dollars on a computer screen, send it to another computer at another bank as a loan, and leave your $10,000 sitting in the vault. Or in the computer, however you want to picture it. This results in the creation of billions and billions of dollars over time. How many billions, or trillions, you ask? Great question- no one knows. Congress has no authority to audit the Federal Reserve, we don't even know how much money they print anymore. They're not legally required to disclose it. They are allowed to run the printing press 24/7, loaning that new money away to banks on a daily basis, which the banks then use to create their own money and loan it to another bank, who then takes it and creates their own money out of it, and so on and so on.
This practice is what caused the financial bubble. Don't buy into 'oh the mortgage rates adjusted and blah blah blah and subprime lending and less regulations'. Complete nonsense. What caused this bubble is simple- We have a central bank going around literally counterfeiting money. They are printing it and printing it, and niether you, me, Congress or even the President of the United States has the authority to say "Hey, Mr. Bernanke- stop." The Federal Reserve Act of 1913 gives the central bank full monetary authority, and the federal government zero. Don't be confused- the Federal Reserve is not a government run or owned bank. It is owned by private citizens, just like the mom & pop dry cleaner down the street. Who exactly, we don't know, because again we have no authority to even investigate or audit. Back to my point! You have all these banks running around digitally creating money left and right, and then giving that digital money to other banks, so they can turn around and create digital money off of it, so forth. THAT, my friends, is why the financial system has imploded. It's because money is becoming a trivial term. It is no different than the anarchy that would ensue if all of us were giving the authority to print our own money. "You want a million for this house?" :scribble scribble: "Here you go! How about that car? $90,000?" :scribble scribble: "Great doing business with you!"
Want to know how we got to this point? For the last 40 years the government has been doing exactly that. We have been buying countless foreign goods. Damn near everything is manufactured overseas. Stereos, computers, TV's, cars, cel phones, clothing, furniture; all bought with our currency, which is nothing but a piece of paper with scribbles on it. And now all those countries have FINALLY caught on and they're saying whoa whoa, I get it now! The US isn't that wealthy, they don't have a bunch of money, they're just printing it!
Here is what HR 2755 proposes-
NO MORE COUNTERFEITING OF U.S. MONEY. PERIOD.
By abolishing the Federal Reserve, closing all of their banks, and repealing their authority to create money, you are essentially throwing the counterfeiter in jail. Your money will now retain it's value. When banks want to loan money, they have to actually have it, they can no longer just go to the Fed and be given an injection of artificial money, and then use it to create new money.
Call your local congressman (find your congressman at http://directory.usayfoundation.org/) and tell them to SUPPORT HR 2755. Then call or email every friend and family member and tell them to do the same.
No more financial crashes, no more manipulation of our currency, and no more private individuals wielding complete control over the world's confidence in our dollar!
If Mr. Obama truly wants change, he too will publicly support this legislation. And it is up to all of you that voted for him to be sure that he does.