America’s greatest problem: Its debt-money system!
The corrupt Federal Reserve Corporation
We now have this…
A Federal reserve note, issued as a debt
…but we must have this!
A United States note, issued debt free
by the U.S. Treasury (note the red seal)
by Melvin Sickler
If you would ask any American citizen what the Federal Reserve is, he probably would tell you that it is a government agency that creates all of the money to run the United States. This, unfortunately, is the misconception most American have: that the Federal Reserve is a government agency, probably because the word “Federal” is used in its name. And this is exactly what the Bankers want: ignorance among the population!
In the next few paragraphs, I am going to simply explain what the Federal Reserve is really all about, and how it is being used to control the United States. A good resource book that I am using is entitled “Billions for the Bankers — Debts for the people” by Sheldon Emry.
A private corporation
The first thing that must be understood is that the Federal Reserve Corporation is not a government agency, as most people think. It is a private corporation controlled by the Bankers, and therefore it is operated for the financial gain of the Bankers over the people, rather than for the good of the people.
When our Founding Fathers wrote the Constitution of the United States back in the 1700’s, they specifically stated in Article 1 of this Constitution:
Congress shall have the Power to Coin Money and Regulate the Value Thereof.
It was the wish of the Founding Fathers that the power to create and control the money be in the hands of the Federal Congress, and not in the hands of private Bankers who could charge enormous amounts of interest, and who could actually then control the country by controlling the money. They understood the tricks of the Bankers, for what did Mayer Anselm Rothschild, the great European Banker, once say: “Permit me to issue and control the money of a nation, and I care not who makes its laws…” It was their belief that all citizens should share in the profits of its creation, not just private Bankers, and therefore the national Government must be the only creator of money.
So what happened! For several years after the Constitution was signed, the money in the country was handled both legally and illegally, the Bankers having devised all kinds of tricks to try to take control of the nation’s money.
The Federal Reserve Act
But the final blow came in 1913, on Christmas Eve, when the Congress passed the Federal Reserve Act, which officially took the power to create the money to run United States away from the Congress, and gave it over to private Bankers, who called themselves the Federal Reserve Corporation. But note: they are private Bankers.
The passage of this Federal Reserve Act authorized the establishment of a Federal Reserve Corporation, with a Board of Directors (The Federal Reserve Board) to run it. And the United States was divided into 12 Federal Reserve Districts.
This new law completely removed from the Congress the right to create money or to have any control over its creation, and gave this function over to the Federal Reserve Corporation. The Fed printed “Federal Reserve Notes”, which are still accepted today as money among the citizens of the country.
But we have to understand that these Federal Reserve Notes, used as money in the country, cannot be considered as being constitutional money. Why, you ask? Because the Congress went against the Constitution of the United States when it passed this Federal Reserve Act, for it specifically states that Congress, and only Congress shall have the power to coin and regulate the money of the country.
Some might ask: “What does it matter if Congress or private Bankers create the money? It is accepted by the people just the same as a medium of exchange with which to perform business transactions”.
Yes, the Federal Reserve Notes are accepted as a medium of exchange by the people of the United States. But this is a debt-money, being interest is charged on every dollar that is created, but the interest is not created!, Let me give an example to illustrate this point.
To obtain the money
Let us say that the Federal Government needs $1,000,000,000 ($1 billion) more, after it collects the taxes, to continue financing its projects. Since it does not have the money, and Congress has given away its authority to create it, the Government must go to the Federal Reserve, which is now in charge of creating the money for the country. But the Federal Reserve does not just give its money away! The Bankers are willing to deliver $1 billion in money or credit to the Federal Government only in exchange for the Government’s agreement to pay it back — with interest! The Congress then authorizes the Treasury Department to print $1 billion in U.S. bonds, which are then delivered to the Federal Reserve Bankers.
The Federal Reserve then pays the cost of printing the $1 billion (about $1,000), and makes the exchange. The Government then used the money to pay its obligations.
Now, what are the results of this transaction! The $1 billion in Government bills is paid, but the Government has now indebted the people to the Bankers for $1 billion, on which the people must pay interest! And, of course, the interest is not created!
And, to top it all, on this $1 billion that the Federal Reserve received in bonds from this transaction, it is legally allowed to create another $15 billion in new credit to lend to states, municipalities, businesses, and individuals. Added to the original $1 billion, they could have $16 billion of created credit out in loans paying them interest, with their only cost being the $1,000 they spent for printing the original $1 billion lent to the Government. Is it diabolical? You bet it is!
We should probably clarify the term “create”. When we use this term, we refer to the process used to bring money into existence. The Bankers create money out of nothing, simply by writing numbers in their ledger books, and then giving loans to the American people with this money, allowing them to write checks on the numbers written in their accounts, and then requiring payment with interest. Money is nothing but numbers, be it numbers in a ledger book, on checks, or on dollar bills. Using this process, most banks are legally allowed to lend out up to 50 times of what they have on deposit, creating the money out of nothing and then charging interest on it. You have to admit that it is quite a racket!.
And the Federal Reserve prints the paper money we use in circulation, the Federal Reserve Notes, by having numbers printed on pieces of paper of little value, since a few cents will print a $1 bill or a $10,000 bill (at the same cost). Money is very cheap to make, and whoever has the legal right to create the money in a nation can make a tremendous profit.
The national debt
The United States has plunged itself terribly into debt since the Federal Reserve Act was passed.
In 1910, before the passage of the Federal Reserve Act, the federal debt was only $1 billion, or $12.40 per citizen. State and local debts were practically non-existent.
By 1920, after only 6 years of Federal Reserve “shenanigans”, the federal debt had jumped to $24 billion, or $228 per person.
In 1960, the federal debt reached $284 billion, or $1,575 per citizen, and state and local debts were mushrooming.
By 1981, the federal debt passed $1 trillion, and was growing exponentially, being the Banker’s tripled the interest rates. State and local debts were more than the federal, and with business and personal debts, the total was over $6 trillion, 3 times the value of all land and buildings in America.
In October, 2005, the federal debt reached the $8 trillion mark ($26,672 for each U.S. citizen), and it is continuing to grow wildly out of control. (For the fiscal year 2004, the interest payments on the U.S. federal debt were $321 billion.) And that’s only the peak of the iceberg: the total debt (states, corporations, consumers) is over $41 trillion!
United States National Debt (1938-2005)
Our people have become tenants and debt-slaves to the Bankers and their agents in the land our fathers conquered. Our children and following generations will be paying the debt for ever and ever!
We are coming to a point where, eventually, the Government will own nothing, the people will own nothing, and the Bankers will own everything! We are becoming enslaved by the financial institutions of the nation!
And to think that way back in the 1700’s, Thomas Jefferson had warned the American people about such a thing happening. He said: “If the American people ever allow private banks to control the issue of their private banks to control the issue of their money… the banks and corporations that will grow up around them (the banks) will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered!”
It is conquest through the most gigantic fraud and swindle in the history of mankind. And to think that the key to their power and wealth is simply their legal right to create money out of nothing and to lend it out at interest. If they had not been allowed to do that, they could never have gained secret control of the nation.
Now it is predicted that a depression is to take place soon in the United States. You might be asking, “Does this have anything to do with the operation of the Federal Reserve?” You bet it does!
Let us go back to the 1930’s when some of you probably experienced what they called “The Great Depression”. During that time, America had skilled and willing workers, good farmland, a highly efficient transportation system, industries; all that was needed to form a rich nation – all except an adequate supply of money to carry on trade and commerce.
Few people knew that the Bankers had purposely withheld $8 billion from going into circulation by refusing loans to the population while, at the same time, demanded payment on existing loans, so that money was rapidly taken out of circulation and not replaced.
Because of this control on the money, America was put into deep trouble. Jobs were waiting to be done, goods were available to be bought, but there was no money. Food was thrown into the ocean while people were starving. Twenty-five percent of the workers were laid off. The greedy Bankers took possession of hundreds of thousands of farms, homes, and business properties.
Believe it or not, some of the economic experts of that time blamed the moon for bringing about all the economic hardship. Others blamed the politicians. Still others blamed the consumers for not wisely spending their money. But the truth is: the Depression was purposely brought on by the Bankers through their artificial control of the money.
To the end the Depression, the United States Government borrowed huge sums of money from the Bankers for military equipment, which put a new supply of money into circulation. People were hired back to work, industries began to blossom, farmers sold their produce, and the economy boomed.
The same Bankers, who in the early 30’s had no loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend the Government for war purposes. The nation, which a few years earlier could hardly feed its own people, was now producing bombs to send free to its allies. Upsetting? You bet it is! And to think it is all because some private Bankers, who call themselves the Federal Reserve, have the legal right to create and control the money to run the country — as they so wish!
President Woodrow Wilson had this to say about the Federal Reserve: “A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world — no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men.”
(Just before he died, Wilson is reported to have stated to friends that he had been “deceived” and that “I have betrayed my country.” He was referring to the Federal Reserve Act passed during his Presidency.)
We know the Bankers, the hidden controllers of the countries, purposely instigate wars, financing both sides of the same war, to frighten the people into going billions of dollars into debt for national defense. They even finance Communism, and then turn around and have foreign aid sent to stop the Communism that they financed!
The tens of thousands of young people who are killed, and the hundreds of thousands who are crippled and morally corrupted from war, means nothing to them. In fact, it doesn’t even matter who wins or loses the war, as long as all the countries involved are in debt to these Bankers.
It was Henry Ford Sr. who once said: “The youth who can solve the money question will do more for the world than all the professional soldiers of history.” I think you can understand why!
The Bankers purposely try to corrupt the people so it be easier to control them, sweeping away anything that is honorable, such as morals, religion, family, love of country. They encourage drug use, alcohol, pornography, and crime. And they deliberately prevent real cures for diseases, stir up social and racial unrest, and work to degrade the educational system.
Many of our politicians have become agents of the Bankers, while our two political parties have become their servants. No matter who you elect into high office, Rockefeller and his agents will be running the Government behind the scenes — you can be sure of it! How else could something so diabolical as the Federal Reserve, something so destructive to the national interest of the people, be allowed to continue so long?
We know that the Bankers control all of the news media and information centers, even the financial writers, to prevent people from learning the simple truth about your money system. They blame the people for causing the increase in debt and the inflation of prices, when they know that the real cause is the debt-money system itself.
The ultimate solution
By now you must surely agree that the only real solution to solve our financial problems is to put pressure on the Government to repeal the Federal Reserve Act of 1913 and to demand that Congress again be allowed to create and control the money of the nation, issuing interest and debt-free “United States Notes” as the legal currency. John F. Kennedy had begun to do this very thing just before he was assassinated!
With a reform in the money system, no private Bankers would be able to rob the people. Government banks, under the control of the people’s representatives, would issue and control all money and credit. A $60,000 loan made a build a house would require only $60,000 in repayment (with a little service fee), not $255,931.00 as it is now. Everyone who supplied materials and labor to build the house would get paid just as they are today, but the Bankers would not get $195,931.00 in usury.
A debt-free America would mean that mothers would not have to work but could remain home with their children. Juvenile delinquency would decrease rapidly. The elimination of the usury and debt would be the equivalent of a 50% rise in the purchasing power of every worker. The Bankers would no longer be able to steal billions of dollars from the people every year in interest. America would become the envy of the world, being prosperous and powerful beyond the wildest dreams of its citizens.
Take action now!
It is imperative to take action now! You must do your duty as a patriotic citizen. Love of country and concern for your children should make you deeply interested in this, America’s greatest problem. The future of the country depends on each one of you.
Order our leaflets (its free) on the Federal Reserve do distribute in your area, either on cars in parking lots or house to house. Speak to the various organizations in your community to alert them about what is taking place. Get everyone to subscribe to the “Michael” Journal to learn more about monetary system.
Write editorials in your local newspapers. Above all, write to your elected representatives in Government, and get others to also write, asking them to work to repeal this Federal Reserve Act.
And last but no least, get down on your knee to pray to Almighty God to free America from the yoke of High Finance, so that it can again become “one nation, under God, indivisible, with liberty and justice for all”.
(Note: I would personally like to thank all those who have done