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OpEdNews Op Eds    H2'ed 3/27/15

Why Our Government Needs to Take Over the Federal Reserve Bank ASAP

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Taking over the Fed is the critical missing element needed to move humanity back from the brink of economic destruction and nuclear disaster, away from a future dominated by fraud, ugliness and warfare, toward a world of justice and beauty. Who gets the power to create money is the question that's at the heart of monetary reform, and this power is an awesome power -- at times stronger than the executive, legislative and judicial powers combined. It's like having a "magic checkbook" where checks can't bounce. When a nation's central bank is controlled and essentially owned by banksters, it can be used, by them, to allow a good portion of the top 1% to gain obscene amounts of riches. But much more importantly, that power (of central bank ownership), depending on who has it, determines the direction and success of our society. How so? By deciding what gets funded, nationally, and what does not.

So, will our taxes be used primarily to build and repair vital infrastructure such as the New Orleans levees and Minneapolis bridges, and to otherwise protect and enhance major cities and the country at large? Or will our tax revenues continue to be squandered on profit-making warfare, profit-making real estate bubbles, and profit-making Wall Street derivatives gambling -- leading once again to crises, crashes and perhaps even another depression and war, as the existing 'Federal' Reserve racket has repeatedly allowed/encouraged in the past?

The power of issuing money should never have been taken away from our democratically elected government and placed into the scheming hands of banksters, as it was in 1913, in the form of the privately owned, but deceptively named, "Federal" Reserve System, which was secretly conceived and born in that year.

Most people would be surprised to learn that the bulk of our nation's money supply is not created by our government, but rather by banks as they make loans. Banks create new "money" out of thin air whenever they make loans. They do this by instantly putting this newly created money into the private bank accounts of those taking out loans. In other words, most of our money is issued as interest-bearing debt by banksters who collect billions of dollars of inflated interest payments on all that indebtedness. When Joe Blow borrows money from a bank, that money, contrary to popular understanding, does not in any way come from the supply of money that other customers have deposited. That's a popular fiction created by banksters as part of their grand scam. Rather, it is new money that the bank has created out of thin air for Joe, by simply using a computer to instantaneously add a specified amount of indebtedness (i.e. interest-bearing debt) to Joe's account. Joe gets the money he has borrowed from the bank, but fundamentally those dollars are units of interest-bearing debt. Joe then has to pay relatively high rates of interest on every freshly created dollar he borrows from the bank. This is, of course, a gold mine for banksters, because all the money they loan out, at unnecessarily high interest rates, is created out of thin air.

The normally privatization-minded Wall Street Journal admits that "The (publicly owned) Bank of North Dakota's operating costs are extremely low -- no exorbitantly-paid executives; no bonuses, fees, or commissions; only one branch office; very low borrowing costs.." Meanwhile, at privately owne d banks, interest payments by borrowers claim one out of every three dollars that we spend, and by the time we retire with a 401(k), over half of our money is lost to the banks.

Even worse, our government, too, has to pay interest on every dollar it borrows, when it borrows from the Federal Reserve or from anywhere else. Keep in mind that when investors worldwide fail to buy all the Treasury bonds periodically offered for sale by the U.S. Treasury, the Fed takes up the slack and buys whatever leftover bonds need to be purchased, thus helping in a major way to provide our government with the operating revenue it needs.

The main problem with this is that we tax payers must then pay interest on all these billions that our government borrows when its Treasury Department sells these Treasury bonds. Note:Any government or corporate entity that sells any kind of bond must of course pay interest to the bond-holder/investor. And at the present time, the total amount of interest that we taxpayers must pay each year, on this huge indebtedness, exceeds the amount paid in 2013, which was $228 billion. And, as the third-largest item on the federal budget, that is, of course, billions that we taxpayers would not have to pay out every year if America's central bank was not privately owned but was instead owned by the government itself.

As to the possibility of the government actually owning our central bank, please understand that under the Constitution, Article I, Sec. 8, our government already has the sovereign power, and the constitutional right, to issue money and spend it into circulation, and, by this means, through a government-owned central bank, to promote the general welfare.

For example, through the creation and repair of infrastructure, including human infrastructure (i.e. health and education), our government could, by way of its central bank, put those hundreds of billions of dollars to very good use instead of blowing it on enormous interest payments every year. Instead, however, it lets private banks (i.e. banksters) create our nation's money, much of which is then used to buy junk bonds from banksters, who then use that money for speculation on derivatives, which ultimately causes one crisis after another. For this reason, our lawmakers must now reclaim the constitutionally granted power to create the nation's money, to own and operate our nation's central bank, and to use it to promote the general welfare, as conceived and authorized by our founding fathers.

Money has value because of skilled people, resources, and infrastructure, all working together in a supportive social and legal framework. Money is the indispensable lubricant that lets our system run as smoothly and efficiently as possible. Money is not tangible wealth in itself, but mostly represents the potential to help generate wealth, when put to use (i.e. invested) intelligently. Money is an abstract social power based in law, and whatever it is that government accepts in payment of taxes will eventually become spendable money. The only question is, who is ultimately going to spend most of it, and on what are they going to spend it?

Unhappily, mankind's experience with bankster-money-creation has been a long history of fraud, mismanagement and villainy, and the present crisis, not yet over, is among the worst yet, even as it gets ready to repeat itself.

Banking abuses have long been pervasive and self-evident. Major banks and corporations focus on abusing the money system instead of focusing on how to help maximize production and the common welfare. Billions have been stolen, and trillions more have been shamelessly grabbed in so-called bailouts! And instead of protecting our citizenry, most of our top political leaders are facilitators of the banksters who continue to rape America.

Bankster money creation leads to an unprecedented concentration of wealth, which destroys the democratic process and promotes military imperialism. The result: A highly privileged 1% of our population now claims ownership of an unprecedented 50% of the nation's total wealth. Meanwhile crumbling infrastructure is ignored, growing millions who could repair it remain unemployed and underemployed, and ever more of the nation's children are poorly educated and neglected by parents too busy with ever more hours of work, which their ever reduced wages require them to perform.

The American Society of Civil Engineers gives a grade of D to our infrastructure and says it will soon be a D-minus. It also estimates that $2.2 trillion is needed over the next 5 years to bring our nation's infrastructure back to the level of safety it provided 50 years ago. That fact alone shows the world's dominant monetary system to be a major failure crying out for reform.

Infrastructure repair could provide well-paid employment throughout the nation

There is a pretense that government musteither borrow or tax to get the money for such projects -- this in spite of the fact that it is well established that the government can directly createthe money needed and spend it into circulation for such projects, without having to borrow anything and without inflationary results. And a properly reformed monetary/banking system could generate all this new employment very quickly!

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Several years after receiving my M.A. in social science (interdisciplinary studies) I was an instructor at S.F. State University for a year, but then went back to designing automated machinery, and then tech writing, in Silicon Valley. I've (more...)

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