In our declaration of Independence we find these words:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. "" That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, ""
I wonder how many of us believe that our central government derives their just powers from we the people? And, if we the people are not the source of the powers exercised by our central government then who or what is?
Laying that question aside for the moment consider the meaning of the word "just". According to Webster's Seventh New Collegiate Dictionary, "just" means morally right or good. And "power" means possession of control, authority, or influence over others.
I don't think anyone would argue that the central government does not have power over us. Through various forms of taxation and inflation of the currency they convert the fruits of our labor to their account by means of force. And they exercise control and authority over our lives through law and regulation also by means of force. Further, they influence our lives through propaganda dispensed in our institutions.
Are these powers just? Are they morally right and good? Is it right to take a man's money and spend it on that of which he disapproves? Jefferson called that the highest form of tyranny. Do I want my money going to Planned Parenthood to support abortion? Is it right for the central government to approve of torture? Is it right for the central government to engage in undeclared war and kill thousands of innocent men, women, and children? Is it right for the central government to meddle in the business of other nations including assassination? Is it right for the central government to arrogate powers to itself not enumerated in the Constitution to the hurt of the States and the people? Is it right for the central government to continually deplete our civil liberties? These questions could go on endlessly and the answer to all of them would be a resounding NO! The majority of the powers exercised by the central government are not just, and they are not morally right and good!
No matter how noble its origins, every government devolves into a similar final configuration. That is, that the government's sole function is to extract their wealth and power from the productive sector of the population. They will employ euphemisms to cast their activities in a high sounding and favorable light to leave a positive impression with the people. Such expressions may be used as "pay your fair share" in the hopes that we never look below the surface and question why we assumed the burden in the first place. They will talk about investing money in various projects, when any clear thinking person would know that government can only invest (read spend) what they take away from me and you. Further, government does nothing well. There is no incentive for government to do well.
So the central government has power but the powers are not just. How did we start so well and wind up where we are today as servants to a leviathan government? Were we just not paying attention? Perhaps. Some things take a long time and our current problems can be traced to the year 1913 and the passage of the Federal Reserve Act. Ask your neighbors or friends who owns the Federal Reserve and they will invariably tell you it is the government. Of course that is exactly what the bankers wanted us to believe by adding the word "Federal" to the title. And, it has worked. But in fact the Federal Reserve is a private institution beyond the reach of any branch of the central government. In passing the Federal Reserve Act a majority of congress sold out the American people by abdicating their constitutional responsibility to coin money and regulate the value thereof and gave that authority to a private banking cartel.
This meant that the money supply and interest rates are now managed by private persons. (I wonder whose interests they really have at heart?) So, instead of a free market we have had a managed market for nearly 100 years. Interest rates fluctuate at the whim of the Federal Reserve. This leads to booms and busts. When interest rates are artificially lowered, lending increases and mal-investment results.
Add government interference in the economy and you have the situation we are faced with today. Over the last few decades certain members of congress wanted everyone to have a house whether they could afford it or not. Fueled by low interest rates, mortgages increased exponentially. Everyone was having a good time and the mortgages were being traded on Wall Street further compounding the problem. But, guess what? The folks that were encouraged to buy what they could not afford started to default on the mortgages in droves. And, who do you think was left holding the bag? The bankers? The financial institutions? The insurance companies? Not at all. Thanks to our supposedly benevolent government they made sure it would be the people who will be paying for generations to come.
It is invariably the case that government creates the problem and then proposes to fix the problem. Just as the depression of 1929 was protracted due to government interference by Hoover and Roosevelt this one will be protracted by a new round of government interference with the passage of the latest stimulus and pork bill. Of course it will not work. The correct solution would be for the central government to reduce spending and taxes and curb inflation. Then allow the mal-investment to flush out.
So, back to the original question. What is the source of power for the central government? It is in your wallet. It is the Federal Reserve Note coupled with legal tender laws. It gives the central government the power to pursue all of their adventures without having to come to the States or the people for funding. They just print what they need and leave you and I to pay the bill through taxation and inflation.