The death of debt-free money
This is the fourth and final episode in a series of articles
about America's absurd debt money currency.
We have seen that our nation's entire money supply has been borrowed from
private bankers, who loan us dollars they create out of thin air; that we must
provide the Federal Reserve with collateral for their loans and pay interest on
every dollar in circulation; that this system of debt money is the only reason
why we have our national debt; and last week we saw how we have been
continually paying interest on debts incurred since before the Civil War.
Last week, we also saw that our U.S. Treasury Department
issued debt-free currency (greenbacks) at the beginning of the Civil War rather
than borrow paper money from the bankers at sky-high rates. The bankers, as you might imagine, were not
happy with this arrangement because they were missing out on their cut of the
war profits. What's the point of having
a war if you can't make money?
In 1862, bowing to the pressure of big city bankers,
Congress halted the production of debt-free greenbacks and degraded them from
being legal tender, good for all debts, to being legal tender except for duty
on imports and interest on government debts.
This "exemption clause" broke the back of the greenback dollar and from
then on, its value was always less than a dollar and floated with the tides of
war. The bankers then used the
exigencies of war to force Congress to pass the National Banking Acts, ensuring
they would be able to exchange their colorful little paper rectangles for
United States Treasury Bonds, which paid the bankers both interest and
principal in gold. That legacy of infamy
survives to this very day. This system
of money creation, with currency issued by private bankers out of thin air, in
return for U.S. Treasury Bonds, was codified again in 1913 when President Woodrow
Wilson signed the bill allowing bankers to form their Federal Reserve cartel.
For more than eighty years, bankers traded
their pretty pieces paper for U.S. Treasury Bonds and kept the billions of
dollars that they received as interest and principal. But during World War II, Texas Representative
Wright Patman and California Representative Jerry Voorhis argued in Congress that
the U.S. Government should purchase the Federal Reserve Banks. In order to appease these stalwart
adversaries and stop their battle to terminate the bankers' magic money machine,
the Federal Reserve began a policy of refunding "most" of the interest money
they collected from the U.S. Treasury, back to the Treasury. This made a significant portion of our
national debt, moot. When you consider
the fact that the privately-owned Federal Reserve currently holds about $2
trillion in U.S. Treasury Bonds, Notes, and Bills, the enormity of that
concession should hit home.
Maybe someday, on this site, we can discuss the remarkable
story of how the bankers took their revenge on Representative Voorhis and how
those actions fundamentally altered our nation's destiny, adversely affecting
us even today. For now, as you watch the
evening news or read here of the endless arguments in Congress, about whether
or not they should pay their bills or raise the debt ceiling, you will
understand that these battles are absolutely unnecessary. Very few people understand that our nation
can move forward to a better and brighter future by simply having our U.S.
Treasury issue our nation's money without debt, rather than continuing to "borrow"
it from bankers who create it out of thin air. Please, spread the word.
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