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Why Donald Trump Must Shut Down the Federal Reserve and Start Issuing Debt-Free Money

Wednesday, November 16, 2016 20:33
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(Before It's News)

Michael Snyder is the publisher of , The American Dream Blog and The Truth

great-seal-on-the-dollar-public-domainIf Donald Trump truly wants to fix the economy, he must shut down the Federal Reserve.  If he just tries to patch up our current system, he will fail, because it has been fundamentally flawed from the very beginning.  A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system.  An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U.S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape.  Sadly, they were successful on both counts.  Since the creation of the Federal Reserve, the value of the U.S. dollar has declined by approximately 98 percent and our national debt has gotten more than 5000 times larger.

Americans tend to give most of the credit or most of the blame for the performance of the U.S. economy to our presidents, but the truth is that an unelected, unaccountable group of central bankers has far more power over our economy than anyone else does.  The Federal Reserve has become known as “the fourth branch of government“, but unlike the other branches of government we are told that the Fed’s decisions are “above politics” because they are “too important”.  Fed officials fiercely guard their “independence”, and they fiercely resist any “interference” from Congress, the President, or the American people.

Donald Trump can try to lower taxes and reduce regulations, but what he will be able to do to influence the economy pales in comparison to the immensely powerful tools that the Fed wields.  The Fed controls interest rates, the Fed controls the money supply, and the Fed regulates the banks.

To give you an idea of how enormously powerful the Fed is, I want you to pull out a dollar bill.

As you look at that dollar bill, I want you to notice that it says “Federal Reserve Note” right at the top.

In the financial world, a “note” is an instrument of debt, and the truth is that our system was designed to create as much debt as possible.

So why are we using debt-based “Federal Reserve Notes” in the first place?  Shouldn’t Congress have control over our currency?

According to Article I, Section 8 of the U.S. Constitution, it is Congress that has the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So how did the Fed get involved?

Well, it is a very long and convoluted story, and if you are interested in the history behind it I would commend to you an excellent book by C. Edward Griffin entitled “The Creature from Jekyll Island: A Second Look at the Federal Reserve“.  Basically, big money interests on Wall Street got their hooks into the White House and Congress, and they rushed through legislation right before Christmas in 1913 that created this insidious central banking system that was designed to slowly but surely take wealth from the American people and put it into their hands.

Sadly, most Americans don’t even realize that we have a debt-based currency, nor do they understand where our money comes from.  In a previous article, I discussed how money is normally created by the Federal Reserve under our current system…

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

The Federal Reserve takes the U.S. Treasury bonds that it receives in exchange for the “Federal Reserve Notes” that it gave to the government and it auctions off those bonds to the highest bidder.  But of course this process always creates more debt than it does money…

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

So our debt just keeps going up and up and up.  While Barack Obama has been in the White House our national debt has risen by more than 9 trillion dollars, and at this moment it is sitting just under the 20 trillion dollar mark.

But we shouldn’t be surprised by this, because this is precisely what the Federal Reserve system was designed to do to us.

Many conservatives still hold to the mistaken illusion that we could somehow pay all of this debt back someday, but as I have shown in a previous article, this is mathematically impossible to do.

If the government went out today and grabbed every single dollar in existence we could not pay back the national debt, and of course we have trillions of dollars of household debt, trillions of dollars of corporate debt and trillions of dollars of state and local government debt that we need to pay back as well.

Under the current system our only hope is to keep the wheel spinning by continuing to devalue the dollar and by continuing to go into even greater amounts of debt.

And of course it isn’t just the United States that is in this predicament.  At this point, almost every single nation on the entire planet has a central bank.

Even though there are extremely sharp disagreements among nations on virtually everything else, somehow central banking has achieved nearly universal adoption.

As you read this article, well over 99.9% of the population of the globe lives in a country that has a central bank.

Do you think that is just a coincidence?

Of course there are still a few very small countries such as the Federated States of Micronesia that do not have a central bank, but the only big nation not to have one is North Korea.

And you would literally have to be insane to want to live in North Korea.

But now we have an opportunity to get free from this insidious system.  The truth is that we don’t have to have a central bank.  In fact, the greatest period of economic growth in U.S. history was when there was no central bank.

We don’t need central planners to set our interest rates and to manipulate our money supply.  They will never admit this, but the reality of the matter is that their interference in the economy often creates tremendous economic busts.

Since the Federal Reserve was created in 1913, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.

Considering their track record, isn’t it time for a change?

And we don’t have to have a debt-based currency.  In fact, not too long ago we had a president that decided to start issuing debt-free “United States Notes”.

Back in 1963, President John F. Kennedy issued Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were directly created by the U.S. government.

He was assassinated shortly thereafter.

Most Americans don’t realize this, but many of the debt-free United States Notes that were issued under President Kennedy are still in circulation today, and President Trump could do something similar.

But will he?

It has been said that the borrower is the servant of the lender, and the Federal Reserve system has turned all of us into debt slaves.

Debt is a form of social control, and the global elite use all of this debt to dominate the planet.  The total amount of debt in the world just hit a brand new record high of 152 trillion dollars, and the longer we allow the central banks to control the system the bigger this debt bubble will become.

There is a way out, and here in the United States that starts with shutting down the Federal Reserve and issuing debt-free currency.  It would take someone very bold to make a move like this, and so let us hope that the man that we just elected is up to the task.

Read More: The Economic Collapse Blog Reprinted & Distributed With Permission

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  • that’s why the globalists want to hook us in with england, canada and mexico. so that we won’t be able to dump the federal reserve. WE STAND ON OUR OWN. NO ENGLAND. NO CANADA. NO MEXICO. AND DEFINITELY NOT THE ILLEGAL NATION OF ISRAHELL. GET THIS MONKEY OFF OUR BACK!!!!!

    • Oh really, you stand on your own? Except for the part of your country (as you likely know it) being the result of immigration, genocide, etc?

      So all those cheap things you (don’t) manufacture and americans so lovingly buy, a lot of that is not from other countries, is it?

      Shit, last time I checked, Angola supplied like 10% of what america deems “american” oil. Do you even know where Angola is? Oh right, maybe you forgot about Reagan’s administration, too.

  • :arrow: :arrow: :arrow: :?: :?: :?: EXACTLY! Would be nice if the US had its own Bank and one not fully owned by a private for profit business like Wendys, McDonalds, etc…

    But IF THEIR IS A FEDERAL CRASH – SIMPLE!

    Cut them off and tell the Federal Reserve to SUE THE NEW US IN COURT IF THEY WANT THEIR MONEY! See how they can claim to be acting as a “Nation” and we can open up all the Illegal United States Business Corporation to the people so everyone knows they were scammed for 80+ years by all the previous Presidents, and businesses doing all their illegal stuff without the rightful owners (We The People) consent! Claim to have all agreements, bogus legal ownership of transfer property, etc null and void, and have they fight for it! This will expose all their past crimes to start our nation over….

    Go in and take all their Gold, Silver, and then all the Banks Gold, which is rightfully the American Peoples, as they got it by criminal and misleading means. All gold and monies given to them was part of a CRIMINAL ACTION AND IS NOT RIGHTFULLY THEIRS, as they lied, cheated, and stole it all by CRIMINAL MEANS! If we have to go down, take all the Gold and money the Federal Reserve has, plus all in the banks, who got it all knowingly illegally, and does not belong to them. Have them answer and file charges to prove they did not know it was gained by any criminal means…

    Start with the criminal Bush Family, who’s very history is that of criminal and Hit1er. In 1933, Prescott Bush (HWs grandpa) was CONVICTED BY A CONGRESSIONAL COURT (yeah, Congress found him guilty) of an Attempted Coup of the White House! Do a search – 1933 prescott bush nazi and search yourself. Hit1er promisted Prescott Bush to be the Ruler of America if he won. Then as US and UK solderis we fighting and dying on the WW2 battlefield, Prescott Busch was money laundering and selilng stolen naze goods from all of Europe, so the Bush family DID NOT SUPPORT AMERICA DURING WW2, BUT GERMANY! FACT! And they won because the 2 Bush family brought the German agenda into the White House. Too, they THE SILENT OWNERS OF GOLDMAN SACHS! The #1 criminal Wall Street bank, that has all the Clinton ties… But yeah, Congress courts in DC found the Bush Family Guilty of holding any office in america, but of course, our real history was controlled to not tell you all the honest US history, and the Bush criminal past!!!!!

    :twisted: :twisted: :twisted: :twisted: :twisted: :twisted:

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