classical economics
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Ending Debt Slavery

The Federal Reserve Owes US!

By Wayne Jett © February 17, 2017

     Human slavery is very much present in 21st Century America and the world. The slaves are of every race, creed and color. Our slave-masters are the criminal cabal of powerful families who rule through a shadow government which places them above the laws binding the rest of us. In 2017, an American majority is mounting a determined movement to end the slave regime and open an era of justice and opportunity for all.

     Woodrow Wilson campaigned in 1912 against creating a central bank or imposing an income tax. On that platform, he won the Democratic Party nomination and election as president. Yet Wilson signed into law in 1913 both the Federal Reserve Act and the federal income tax, breaking his pledges to those who voted him into office. Instead, he honored the secret deals he had made with the ruling elite’s shadow government they called the New Republic.

     During Wilson’s tenure as president, the New Republic raised income tax rates sharply, put the nation into World War I and the "influenza of 1918" into the nation - a "flu" which killed more able-bodied Americans than all the nation's wars combined. After Wilson, Americans had eight years (1921-1928) of economic recovery and growth before the New Republic plunged into decades of nearly unbroken wars and inexorable moves towards fascism. Fascism in the American experience imposes government policies dictated by the New Republic (remember House Speaker Nancy Pelosi's "we have to vote it into law before we can read what's in it"), while opposition is suppressed and public opinion is manipulated by elitist-selected presidents, senators, representatives, bureaus and media.

                                                                                  Third Time is Charmed

     For only the third time since Wilson’s presidency, Americans recently elected a president willing and able to roll back fascism and stop the New Republic’s schemes to destroy the middle class. President Kennedy fell to assassins’ bullets and President Reagan was significantly weakened by the same means. Each had waiting impatiently a vice president committed to the New Republic's agenda.

     Of these three presidents, only President Trump had the foresight and opportunity – sharpened by the hard experiences of the shadow government’s actions against JFK and RR, not to mention Lincoln, Garfield and McKinley – to run his campaign and to form his governing team so as to oppose and to counter the New Republic’s assault.

                                                                    Federal Reserve: World’s Largest Debtor

     A primary instrument of American debt-slavery is the currency called the dollar. Article 1, Section 10, of the Constitution forbids each state from making anything except gold or silver coin legal tender for debts. Despite this express bar against such action by any state, Congress in 1913 authorized a private corporation, the Federal Reserve, to issue paper currency as legal tender for debts and to charge for its use.

     From the Fed’s inception until 1933, anyone with a Fed “dollar” was entitled to exchange it for gold at a guaranteed price of $20.67 per ounce. After Roosevelt’s dollar devaluation January 31, 1934, the stated value of each dollar was $35 per ounce of gold, but Americans were not permitted to own gold. In 1971, Nixon ended any stated value for dollars, allowing the value to “float” day-to-day according to market responses to the Fed’s management of the currency. So the dollar’s value is now undetermined and, potentially, illusory.

Here is the final point of this brief summary of dollar history: the dollar now is actually a “Federal Reserve Note,” the name printed across the top-center of each piece of currency. “Note” is short for the term “promissory note,” which is a promise to pay and deliver the amount stated in the note. Thus, holders of dollars possess not merely pieces of paper; they hold Fed promises to deliver to the holder value reasonably equal to the value delivered by the holder to obtain the note.

     Shallow reasoning? No, not at all. Consider that the Fed demanded and received real value (Treasury securities, mortgages, etc.) for every “note” issued through its front window, as did each subsequent user of that note up to the current holder. Why should the Fed be entitled to demand real value for its “notes” when issued, yet be relieved of any duty to provide equal value to redeem them? Clearly, the Fed owes the public who hold its notes a total debt with a very large value.

                                                                Congress: Enabler of the Federal Reserve

     Congress has enabled the Fed, a privately owned organization, to incur horrendous debts to Americans and the world while the Fed has ever worsening capabilities to repay its obligations. Why even bother to raise this concern at so late a date? This American nation presently has its best chance since Andrew Jackson left the presidency in 1828 to change government policies to what they should be.  U. S. relations with the Federal Reserve and the highly defective currency known as the dollar cry out urgently for equitable remedy.

     As recently as mid-2008, the Fed arguably was capable of redeeming the $845 billion monetary base it had issued. At that time, the Fed’s holdings of Treasury securities might have been saleable in exchange for dollars issued. No longer is that true. Under deceitful policies called “quantitative easing,” the Fed ballooned its liabilities to a reported amount of $4.5 trillion. Unreported amounts of dollar “notes” advanced by the Fed to favored relations around the world far overshadow even this remarkable sum.

     The New Republic's lords have used the Fed’s “notes” to acquire hard assets from trusting sellers across America and the world. Now the Fed is ready to default on its paper liabilities, or - worse - t0 claim users of the dollar are indebted to the Fed! President Trump will need our encouragement and support to remedy this approaching confrontation in the best interests of Americans and the world. Get ready to do your part.