By David Treece
Imagine a world without the Federal Reserve. This would be a world in which economic markets were allowed to work in transparency and integrity. Most importantly, it can be easily argued that there would be next to no inflation.
According to research from the book Truth is a Lonely Warrior, from 1665 to around 1940 there was little inflation. George Washington bought shoes in 1776 for the same price as my great-grandfather did in 1900. This means the dollar bill that Washington carried around and the dollar bill that my great-grandfather carried around had similar value. Does the dollar bill you have in your pocket have the same value as it did even ten years ago?
We’ve probably all said or heard somebody say, “When I was kid I bought a Coke for a nickel.” Statements likes these are a new phenomenon in American history. Imagine how much further ahead in life you would be if your savings could buy the same as they could have bought in the past.
Like most things, the government broke what was working well. Central banks and having a czar that oversees monetary policy are not found in the Constitution.
In fact, in 1802 America’s third president, Thomas Jefferson, said, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered... I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
And even more alarming, it is widely believed that Vladimir Lenin was responsible for the death of hundreds of thousands of political dissidents. He said, “Without big banks, socialism would be impossible.” Remember, American politicians were willing to indebt the taxpayers to the tune of trillions of dollars to save the “Too Big To Fail Banks.” At least one Congressional member exclaimed, “There will be rioting on the streets if we don’t bail the banks out.” Where did the TBTF bailouts get the average American? The can was pushed down the road and banks have become larger, more leveraged, and more in danger of failing than ever before.
The Federal Reserve is a privately owned and operated bank and it gives the illusion that the President of America has some power over it. The formation of the Fed was the antithesis of constitutionality because Article 1 Section 8 states that Congress has the duty to set taxes and provide for the general welfare of the country. Nowhere in the Constitution does it recommend or provide allowance for a central bank. Given the impact the Federal Reserve has in each of our lives, if the Founders had envisioned such a powerful arm of the government it would be included in the Constitution.
The Fed exerts power in your life in that it impacts the price you pay for borrowed money when you have a mortgage, a car loan, credit cards, student loans, and any loaned money to some degree. Also and most importantly to this author is that the Federal Reserve implements taxation that most people never realize. It's widely believed since the Fed’s creation in 1913 the dollar has lost 98% of its value. If the dollar is continually losing value and the Fed is printing money and buying Treasury bonds and other securities our dollar loses value. So the money in our paychecks buys less than it would have in previous years. Simply put, this is taxation that is not constitutional and is not ethical.
So how did we get here? America’s Founders created a backbone with the formation of the Constitution. Given its uniqueness, the way it provided for individual choice, and the way that it empowered the average person, it’s easy to make the argument that the Constitution was divinely inspired.
How do you suppose Vladimir Lenin was able to exert such control over the people of Russia? Through collectivism, control, cohesion, and brute force. America’s founders set up a structure to prevent these things, and powerful families such as Rockefellers, Morgans, Warburgs, and Rothschilds from using greed and cohesion to advance their family wealth. These families and others understood that in order to grow their wealth they would need control of the monetary policy of the country, and then it would not matter if a Democrat or a Republican were President. Mayer Amstel Rothschild stated, “Let me issue and control a nation’s money and I care not who writes the laws.”
The American citizen has been fleeced and taxed and their hard-earned money has been coercively taken from them in the name of growing the wealth for the powerful banking interest. The media has played such a large role in creating the façade of socialism and in taking the product of our work from us in the false name of helping other people that the topic of socialism has become a dinnertime discussion. What most people do not realize is that those advocating socialism like Lenin and others care nothing for us. And those who truly advocate for socialism and greater interventionism are under strong delusions that will be proven to be disastrous.