The Federal Reserve Ponzi Scheme
How we can EASILY rid ourselves of our "national debt boogieman" entirely!
Throughout our nation's history, our nation has undergone numerous economic "boom and bust cycles", and during the "bust" portions of those cycles "boogieman" arguments like the ones we've been hearing about our present "national debt" have been used to "morally justify" governmental actions that have devastated the livelihoods of tens of millions of Americans! But the fact is that none of those disastrous actions were ever really necessary, because our federal government is authorized by the US Constitution to "issue money" WITHOUT incurring any debt to do it. Earlier on, those "busts" were created (or at least made worse) by bank or government initiated contractions of our nation's supply of gold-based and/or silver-based paper money. But nearly a hundred years ago, our Congress (and President Wilson) got duped by a group of Wall Street bankers (led by J. P. Morgan and John D. Rockefeller) into enacting the Federal Reserve act of 1913 which established a legalized "Ponzi scheme" that required our government to borrow from the Federal Reserve in order to issue new paper money. That law CREATED what we now call our nation's "national debt." Subsequently, that borrow-in-order-to-create-money principle was ALSO applied to all federal government checks for "new" (non-revenue-raised) dollars and to new electronically created dollars. The bankers who sneaked that law through Congress knew very well that the US Government would ALWAYS spend more money than it received in taxes and thereby engage in "deficit spending." So given that fact that our national debt get's automatically "rolled over" each year, the US has been paying compound interest on EVERY new paper dollar, check-created dollar, and electronically created dollar it has issued through the Federal Reserve since 1914!
In principle, at least, when our government issues coins, it pays less than face value for each coin, and it pays it only once! But when our government issues new "paper money notes" (minted dollar notes, dollar checks, or electronically created dollars), it not only pays full face value for those notes, it pays compound interested on those notes FOREVER! This is a PONZI SCHEME that is increasing our Federal-Reserve-created "national debt" at an exponential rate!
Our government can solve this problem EASILY by repealing the Federal Reserve Act of 1913 and its follow-on legislation. Our Treasury Department could then "create money out of thin air", just like the Federal Reserve has been doing, but WITHOUT creating any additional debt burden on all future generations of Americans! Eventually, all of the US government bonds that comprise our present "national debt" will get paid off (with interest), and future generations of Americans will no longer need to be concerned about a "national debt" which will no longer exist. This will also enable our economy to operate a LOT more smoothly than it presently does, because our Treasury Department will be able to easily fill in money-supply gaps while "controlling inflation" by limiting the amount of new money it creates, just as the Federal Reserve has been doing (but without incurring debt).
And if you are wondering whether or not the rest of the world will honor US dollars that have no gold or silver backing them up, the fact is that they have been doing so for the past 40 years since President Nixon severed the last remaining relationship between gold and the US dollar in 1971.
The Federal Reserve System is dragging our economy into a "bottomless economic sinkhole!"
The easiest and most practical way to get ourselves out of this unnecessary "national debt crisis" is to REAPEAL the Federal Reserve Act of 1913 and its follow-on legislation NOW!
Christopher Currie, 161 Lake Shore Drive, Pascoag, RI 02859 12 March 2011 (Feel free to publish this.)
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Last modified on Sunday, March 13, 2011