Fiat Money: The Fuel of Government

Richard Hoste
HBD Books
October 16, 2009

End the Fed
By Ron Paul
210 pp. Grand Central Publishing 2009

How many politicians are capable of writing a book, nay, a paragraph that would be worth reading? Watching them on TV, they seem the most spineless, uninteresting group of people imaginable. It seems obvious why. In the same way diversity leads to a culture that appeals to the lowest common denominator, a popularity contest involving the general population favors the smallest men imaginable.

An exception is Ron Paul, a man who lives a life of ideas and action, as the Founding Fathers did. The congressman has spent a lifetime as a champion of liberty and his greatest enemy is the Federal Reserve. Fresh off his 2008 presidential campaign he wrote End the Fed.

Our Government the Thief

According to Paul, the best case against the Fed is simply that it’s immoral. When government prints a new dollar, the value of each one in circulation goes down. The government shouldn’t be allowed to print money for the same reason you or I aren’t allowed to counterfeit.

If that’s not enough for you, there is the constitutional argument. The Tenth Amendment to the Unites States Constitution says that whatever powers not explicitly granted to the Federal Government are left to the people or the states. There is nothing in the Constitution about centralized banking. And the states aren’t allowed to declare whatever they want as money either. Article 1, Section 10: “No state shall…make anything but gold and silver coin a tender in payment of debts.”

The economic argument that centralized banking is needed to deal with the boom and bust cycle is like a tobacco company saying that their goal is to fight lung cancer. It’s the Fed which mandates artificially low interest rates and creates imagined wealth in the first place, leading to the bust phase. Unfortunately, Paul doesn’t explain this clearly enough and I think he may expect too much from the casual reader. The author proceeds as if it’s common knowledge what the Fed is and what it does, or even how money works. Had I not read Murray Rothbard’s The Case Against the Fed and What Has Government Done to Our Money? I would’ve been lost. Both books along with those of others by Mises Institute scholars are recommended under suggested reading.

Read entire article

Steve Watson Infowars.net Thursday, Sept 10, 2009

Related Content

Texas Congressman Ron Paul's bill HR 1207, legislation that would see an audit of the Federal Reserve, is to be subject to an official hearing before the House Financial Services Committee later this month.

The announcement marks another significant step in the progression of The Federal Reserve Transparency Act.

The news was announced last night by John Tate, President of Ron Paul's Campaign For Liberty, with the following statement::

Thanks to the thousands of Campaign for Liberty members who have tirelessly dedicated themselves to spreading the word, gathering petitions, and putting continuous pressure on Congress by calling, writing, and faxing, Congressman Ron Paul informed C4L today that House Financial Services Committee Chairman Barney Frank has officially agreed to hold hearings on HR 1207! The hearings are tentatively scheduled for Friday, September 25 at 9:00 am.

HR1207 now has 285 co-sponsors in the House and 24 in the Senate, meaning that around 65% of the House of Representatives is already co-sponsoring the legislation.

"Less than a year ago, a thorough audit of the Federal Reserve wasn't on anyone's radar. Now, we have the support of seventy five percent of the American people, almost two thirds of the House of Representatives, nearly a quarter of the Senate, and an official hearing before the House Financial Services Committee!" Tate Commented, urging campaigners to continue to seek cosponsers for the bill.

Recent polls conducted by Gallup and Rasmussen found that a vast majority of the public are suspicious of the Federal Reserve, with 75% in favor of an audit.

Though the news that the bill will get a hearing is cause for celebration, more support is needed for the companion legislation in the Senate. Without support for S 604, the Federal Reserve Sunshine Act of 2009, the Senate may be able to block HR 1207 and other legislation seeking to audit the Fed.

The Campaign For Liberty is planning a Mass Action Day on September 15. State and local C4L groups will personally deliver over 100,000 petitions to Capitol Hill, urging more senators to cosponsor the bill.

The key Senators to pressure on S 604 are:

Kay Hutchison (R - TX) 202-224-5922 (on the Senate Banking Committee)

Robert Bennett (R - UT) (202) 224-5444 (on the Senate Banking Committee)

Other Senators on the Banking Committee can be found here:
http://www.opencongress.org/committee/show/146_senate_banking_housing_and_urban_affairs

Use this site to contact your reps:
http://www.downsizedc.org/etp/campaigns/112

List of all senators & contact information:
http://senate.gov/general/contact_information/senators_cfm.cfm

If passed, HR1207 will ensure that the Fed make public the destination of the trillions in taxpayer “loans” that have been simply handed over to private banks without oversight.

Bernanke will be seated before Congress and forced to answer these questions instead of worming his way out of them, citing "extraordinary circumstances" and the like, as we have seen him do over and over for the past eight months.

The bill, if it becomes law, will expose how the Fed has consistently engaged the inflation of the currency for the gain of a few elite international bankers, further exposing how this kind of criminal action has directly led to financial crises and recessions for decades.

An audit would set the stage for the end of fraudulent fractional reserve banking and a return of honest money and fiscal policies.

Geithner: Auditing the Fed is a “line that we don’t want to cross”

In an interview released today by Digg and the Wall Street Journal, Treasury Secretary Timothy Geithner was pressured about the growing popular movement to Audit the Fed spearheaded by Texas Congressman Ron Paul. A visibly uncomfortable Geithner attempts to dismiss the question by stating “I’m sure people understand that you want to keep politics out of monetary policy.” When Geithner is again pressed on the issue, he makes the stunning assertion that conducting an audit of the Federal Reserve—something never before done in its 96 year history—is a “line that we don’t want to cross,” proclaiming that such a move would be “problematic for the country.” Watch the interview in the player below:

Geithner’s response that auditing the Fed would give politicians dangerous control over American monetary policy is mistaken at best and a deliberate lie at worst. Allowing the public to know what happened to their $24 trillion in bailout money does not give undue control of monetary policy to the people’s elected representatives. Instead, such an audit would finally allow the public to see how their money has been spent in the midst of the largest spending binge in the history of the world’s economy, hardly an unreasonable demand given the well-documented revolving door between the Treasury and Goldman Sachs, the main recipient of bailout funds. Ultimately, the Treasury Secretary is left spewing the absurdity that “I think even the sponsor of that bill recognizes how important it is to us to have the Fed independent of politics,” which can only be said to be true insofar as Ron Paul—the sponsor of House Resolution (HR) 1207— wants to abolish the Federal Reserve system altogether.

That the Wall Street Journal would even pressure the Treasury Secretary on serious issues like the Audit the Fed movement may be surprising, given that the Wall Street Journal is a mouthpiece of the financial oligarchy and that editor Paul Gigot, like Geithner himself, is a Bilderberg attendee. Needless to say, this was not a typical inside-the-beltway interview. Instead, questions were submitted and voted on by the Digg community, with the top 10 questions being posed to Mr. Geithner.

As a result, the Secretary was bombarded by pointed questions about his documented tax evasion from 2001-2004, the wisdom of spending trillions of dollars in the light of long-term dollar devaluation and even, in the words of one particularly irate questioner, “Why are you running the Treasury Department?” Despite presumably having had time to prepare responses to each question well in advance, Geithner is still visibly discomfited by the entire exchange, picking at his shirt cuff and coughing nervously throughout the interview.

In one particularly telling moment, Geithner even admits “We have been forced to do just extraordinary things and, frankly, offensive things to help save the economy.”

That these questions are only being asked now, almost a year into the bailout and several months after the new administration has taken office, further highlights how the controlled corporate media is doing everything in its power to keep to well-trodden and uncontroversial areas in their interviewing of key administration officials. This interview is testimony to the power of the citizen journalism movement that is attempting to hold those in power accountable for their actions. We can only hope that the Obama Administration lives up to their promise to be the “cyber” administration by allowing more such question-and-answer sessions in the future.

Bernanke Stutters, Stammers And Shakes His Way Through Questions On Audit The Fed Bill

Steve Watson
Infowars.net
Wednesd and in the House in particular, to audit what the Federal Reserve does, particularly in monetary policy. How do you feel about that?” asked PBS’ Jim Lehrer.“So that bill, people don’t fully understand what that bill is about. It sounds like, audit the Fed, it sounds like ‘Let’s look at the books.’ That’s what it sounds like.” Bernanke spluttered.

 Clearly flustered and sounding very unconfident, Bernanke continued:

 “What people don’t understand is that this bill would give the GAO, the GAO, the authority to audit monetary policy. And what does that mean? That means if the Federal Reserve decided a year from now that because of incipient inflation it was time to raise interest rates, that the Congress would say, ‘Ah, the GAO’s going to audit that decision. It’s going to subpoena your materials. It’s going to demand information from members of the FOMC. It’s going to evaluate your decision. It’s going to report to Congress.’ I don’t think that’s consistent with independence.” Bernanke said.

Watch Bernanke respond to the question regarding the bill:

 July 29, 2009

 

 

 

 

Federal Reserve chairman Ben Bernanke appeared incredibly nervous during an interview aired last night on PBS’ NewsHour, particularly during a question on the ongoing effort to pass legislation that would see the Fed’s books being opened up to a general audit. In a display that will greatly encourage those who continue for push for greater transparency of the privately run Fed’s actions, Bernanke stammered and stuttered his way through the interview, his voice shaking as he attempted to rail against calls to audit the Fed, reciting now familiar and standard lines of propaganda.

“There’s an effort in Congress,

Find more videos like this on 12.160Mhz

Watch the entire PBS interview with Bernanke here.

Bernanke fearmongers that Fed audit would be ‘takeover’ by Congress, trigger economic collapse

Federal Reserve chair utilizes financial terrorism while rebuking attempt by Ron Paul, Congress to hold the independent organization accountable

Aaron Dykes
Infowars
June 26, 2009

Federal Reserve chairman Ben Bernanke unleashed an alarming veiled threat of financial terrorism when he was questioned by Rep. Duncan on Thursday about his response to the fact that a majority of Congress co-sponsoring Ron Paul’s H.R. 1207 bill to audit the Federal Reserve.

Bernanke clearly regarded the bill’s intent as hostile to the institution he represents:

"My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve would be highly destructive to the stability of the financial system, the Dollar and our national economic situation."

The brunt of Bernanke’s statement is as crystal clear as a threat from a common street thug– back off from the Fed, or the economy gets it.

The chairman clearly implies that any attempt to restore monetary powers constitutionally granted to the Congress would be seen as a "takeover" and that the defensive and "repudiated" Fed would respond destructively.

Of course Congress’ constitutional power over money is enumerated in Article I, Section 8 of the U.S. Constitution:

The Congress shall have power… To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

Bernanke’s open use of financial terrorism in the face of Congress’ blatant Constitutional authority is absurd and dispicable.

Greenspan, Bernanke and other Fed-related cronies have already bad-mouthed the Dollar and signaled it’s decline as the world’s currency. So what else is new?

Kucinich: Federal Reserve No More “Federal” Than Federal Express

YouTube
January 10, 2009

Alex Jones End the Fed Interview

OTN
November 22, 2008

OTN covers the End the Fed demonstration outside the Dallas Federal Reserve building on November 22nd, 2008. Alex Jones and Ron Paul’s brother were in attendance.

The terms fiat currency and fiat money relate to types of currency or money whose usefulness results, not from any intrinsic value or guarantee that it can be converted into gold or another currency, but instead from a government's order (fiat) that it must be accepted as a means of payment.

How much does it cost to print a 1 dollar bill and how much to print a thousand dollar bill.

        = Price of the Ink

Currency from the federal reserve is backed by thin air and is a Fiat currency (paper and Ink).

“The issue which has swept down the centuries and which will have to be fought sooner or later is The People vs. The Banks.” - Lord Acton, Historian, 1834 - 1902

 20 months ago:  the Federal Reserve  is still one of the most mysterious Washington institutions (The Mystery is that the fed is a private corporation). These photos from files or provided by the Federal Reserve are the people, who hold such power over each American's pocket book: from top left, Chairman of the Federal Reserve Ben Bernanke; Federal Reserve Governor Susan Bies; Federal Reserve Vice Chairman Donald Kohn; Federal Reserve Governor Kevin Warsh; Federal Reserve Governor Randall Kroszner; Michael Moskow, president of the Federal Reserve Bank of Chicago; Federal Reserve Governor Frederic Mishkin; Timothy Geithner, president of the Federal Reserve Bank of New York; William Poole, president of the Federal Reserve Bank of St. Louis; Cathy Minehan, president of the Federal Reserve Bank of Boston; Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.

Help!!!Please donate to my computer fund. I need $1440.00 to buy a new system that is built to last. I need to develop high definition videos. I need a computer that can kick some  NWO ass! Thanks for your support.

Let's go to the Congressional Record for the testimony of Congressman Louis T. MacFadden in 1932:

"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known.I refer to the Federal Reserve Board and the Federal Reserve banks, which have cheated the government and the people of the United States out of enough money to pay the national debt several times over.
This evil institution has impoverished and ruined the people of the United States and has practically bankrupted our government. It has done this through the defects of the law under which it operates, through the government. It has done this through the defects of the law under which it operates, through the maladministration of that law, and through the corrupt practices of the moneyed vultures who control it!

Some people think the Federal Reserve banks are United States government institutions.They are not!They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers; and the rich and predatory money lenders. Among those financial pirates, there are those who send money into states to buy votes to control our legislation; and there are those who maintain international propaganda for the purpose of deceiving us and wheedling us into granting new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime. These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by bankers who came here from Europe and repaid our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money. They planned and instigated the Russian Revolution...

 

 We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Section 8

The Congress shall have power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish a uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

To establish Post Offices and Post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

To constitute Tribunals inferior to the Supreme Court;

To define and punish Piracies and Felonies committed on the high Seas, and Offenses against the Law of Nations;

To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

To provide and maintain a Navy;

To make Rules for the Government and Regulation of the land and naval Forces;

To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

To provide for organizing, arming, and disciplining the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings; And

To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

Gold and silver have been the most stable currency for 6 thousand years so when the founding fathers stated only Congress could authorize the coining of money and to regulate the Value thereof  , but Rothchild funded bankers infiltrated this section of the US constitution for their interests.

 Their Interest were to create a socialist society which would allow the lower classes to have equal status with each other.The bankers of course would be our gods and we would worship their religion called money , we would allow the break up of our families , and pay our taxes like good little peasants.We would be entitled to have entertainment which would keep us out of thinking , changing their control techniques and would be happy allowing them to make us pay taxes . They would justify these taxes by giving us social programs like welfare, health care but would over generations privatize these programs.Of course our taxes would remain high to pay the interest accumulated by our Governments borrowing from these privately controlled central banks.

  These criminals inflate the prices of living every year .

When Central banks ( Federal Reserve Or Bank of Canada) set the interest rates of lending these cause the price of living to increase and sends a shockwave of price increases down the financial heirarchy.This causes prices to increase in our everday living costs. Below are some examples of how banks who charge interest increase their monatary gains using different interest rates .

Slaves to Interest (Rule of 72)

 Usury at 4%  72/4 =15 years (Bank lends you 1000.00 at 4%) In 15 years you will owe 2000.00 (1000 x 4 % x 15 years = 2000.00)

Usury at 6%  72/6 =12 years (Bank lends you 1000.00 at 6%) In 12 years you will owe 2000.00 (1000 x 6% x 12 years = 2000.00)

Usury at 8%  72/8 =9 years (Bank lends you 1000.00 at 8%) In 9 years you will owe 2000.00 (1000 x 8% x 9 years = 2000.00)

Usury at 10%  72/10 =7,2 years (Bank lends you 1000.00 at 10%) In 7.2 years you will owe 2000.00 (1000 x 10% x 7.2 years = 2000.00)

Our wages very rarely ever increase But our taxes always increase

 " If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property, until their will wake up homeless on the continent their fathers occupied.The issuing of money should be taken from the banks and restored to congress and the people to whom it belongs."

Currency backed by Gold 

The Bearer is entitled to recieve 30 milled dollars , or an equal sum in gold or silver, according to resolution of congress of the 14th, January , 1779.

Currency backed by Gold 

Gold coin 100 dollars repayable to the bearer on demand.

There are only two types of currencies: property (something tangible; the real thing; copper, silver, gold, real estate, and pledges or promises to pay (almost everything else, i.e.: checks, drafts, money orders, ATM and credit cards, certificates of credit, coupons, etc.). A third type of currency is a fraudulent pledge: one that doesn't have all of the necessary ingredients to fulfill a legitimate promise to

1. pay something
2. from someone
3. to someone
4. on some condition or at some time.

 Last page Of The federal reserve banking act.

Mr lewis was injured by a federal reserve vehicle and sued the U.S. government .On April 17 ,1982 , The court ruled "... That since the Federal reserve system and its 12 branch banks are private corporations, the federal government government could not be held responsible."

Lewis vs U.S., 608F 2d 1239 (1982)

The court stated “Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purpose of the FTCA, but are independent, privately owned and locally controlled corporations.”

The Federal reserve is a private corporation that issues currency for the benefit of its shareholders.