Article 1 Section 8 of the United States Constitution
The Congress shall have the power….To Coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Article 1 Section 10 of the United States Constitution
No State shall….make any Thing but gold and silver Coin a Tender in Payment of Debts;
The United States Constitution gives the authority to coin money to Congress. Nowhere does it give Congress the ability to pass this authority onto a private institution. Therefore, the current regime of fiat currency through the Federal Reserve is unconstitutional. It is this Federal Reserve System which allows the theft of the citizens’ wealth through inflation.
The Federal Reserve Board would argue that point. They would say that the authority given by Congress makes the Fed legitimate and that Congressional oversight keeps them in check. But since Congress already illegally passed on their authority, what evidence is there that they would have proper oversight of operations?
Most people believe that the Federal Reserve is solely a government entity. However, that is not the case. Its member banks are its actual shareholders and though 7 seats of Federal Reserve Board are appointed by the President, the decisions made within are not ratified by the legislative or executive branch of government. So, who really ‘owns’ the Federal Reserve? The answer to that question is not a simple one. However, you could look up some Rothschild quotes to see just how important control of the money supply is viewed.
The Federal Reserve was created in 1913 under the guise of protecting the citizens through keeping money healthy, stabilizing its value, and aiding business. But more often than not, when governments implement something of this magnitude, it has the opposite effect of its stated goal. Central banks then and now are surely no exception. And keep in mind that under the current system, ‘money’ is actually ‘debt.’ Banks are only required to have a fraction of what they loan out, and the result is a nearly perpetual and exponential increase of debt to keep the system going. It cannot be sustained forever.
On the other hand, globally, gold and silver have been used as money for thousands of years. Empires, economies, and financial systems have come and gone. And yet, through all of the experiments, fiat currencies, paper money, etc…..gold and silver have held their store of value. (“fiat” translates from Latin to literally mean ”let it be done” – regarding this topic, a fiat currency is basically a currency that has value only because a government or entity says it does, while in reality has no value on its own merit)
Using history as a guideline, you can properly predict where a currency will end up in the long run. TheUnited Statesin its short history has already had several currencies. For example, the Continental was a paper currency which lost nearly all of its value in 6 years. Though counterfeiting was at fault, the depreciation of the currency was used to pay for the Revolutionary War. It was the inflation of the Continental which resulted in the inclusion of the silver and gold clause in the U.S. Constitution as noted above.
So whether it is the Continental, the current Federal Reserve Note under the fractional banking system, or anything in between, it is important to be knowledgeable of this topic. In order to forecast future trends or calamities that may come about, it is important to understand the ‘money’ of the day. Recognize the means by which it receives its perceived value, and act accordingly. Procinctu believes, in the case of the Federal Reserve Note, that the calamity is inevitable.