By Nick Egnatz.
December 23 marks the tragic 100th anniversary of the private Federal Reserve System, when the U.S. government gave to a private banking cartel that which no government has the right to give away–the sovereign right of a people to create and control their own money, the very lifeblood of a free and independent people.
“The Congress shall have The Power To…coin Money…”, Article 1, Section 8, U.S. Constitution.
Contrary to what most Americans think, the Federal Reserve System is not a part of the U.S. government. Rather it is network of private banking corporations, wholly controlled by a handful of Wall Street mega “too big to fail” banking corporations. Anyone doubting their absolute power should hearken to Assistant Senate Majority Leader Dick Durbin of Illinois 2009 statement following the financial crash and the inability of Congress to regulate these banking corporations, “frankly they (banks) own the place (Capital Hill).”
The Federal Reserve System was the secret brainchild of the Rockefeller, Morgan and Rothschild banking families. It was drawn up in a secret meeting at Jekyll Island, Georgia in 1910 and the only way that it was able to be voted into law was for the Rockefeller/Morgan/Rothschild banking corporations and their toxic legislative representative, Senator Nelson Aldrich, the very ones that secretly conceived the system to then publicly oppose it. Thus convincing the American people, their hapless dupes in Congress and President Wilson that it was some sort of banking reform.
The Federal Reserve System is the legal embodiment of a monetary system that creates the nation’s lifeblood (our money) out of thin air as debt. True, The Fed is required to return the interest The Fed accrues on the funds they conjure up out of thin air; but the private banking corporations that own The Fed, use these same funds to justify the loans they make and these same private banking corporations then get to keep the interest they charge the 99% on our credit card debt, mortgage loans, car loans, student loans etc. It is a system of usury designed for the rich to get richer, while making debt slaves of the 99%.
See “Occupying The NEED Act” http://www.intrepidreport.com/archives/11626
for a more detailed discussion of the U.S. monetary system.
Watch this short video as ten year old Holly explains the U.K.’s monetary system, which is basically the same as ours. Just substitute “Federal Reserve System” for the Bank of England and “Wall Street private banking corporations” for High Street banks.
Five years ago the outrageous speculation and creation of toxic financial instruments by the “too big to fail” banking corporations that completely control the entire Federal Reserve System resulted in a browbeaten Congress voting $700 billion to bail-out these functionally bankrupt banking corporations. Unknown to the American people was that the secret Federal Reserve System over the next few years provided another $16 trillion in funds to these same banking corporations and others to pump up the bubble that had burst on the 99% in Sept of 2008. We the people only found out about this secret gift from the Federal Reserve System to the very banking corporations that own and control this same Federal Reserve System because Sen. Bernie Sanders was able to attach a rider on the Dodd/Frank “financial reform bill”. It remains the only public audit of The Fed in its 100 year history.
The Fed continues to bail-out its banking corporations with monthly gifts of $85 billion used to buy bonds and the toxic financial instruments created by these behemoth banking corporations. To date almost $4 trillion has been gifted to the “banksters” of Wall Street via this process known as “quantitative easing” (QE).
Arrayed against this plenary power of private banking corporations to create our money supply are the American people, aka the working class. The Occupy Movement said “we are the 99%” and by bravely occupying public spaces in every major city in the country in 2011 was successful in bringing to the national media a word never before allowed to be uttered–inequality.
The 100th anniversary of the Fed is marked by a nation in crisis. A crisis that cannot be resolved by austerity, sequestration, government shutdowns or cutting unemployment insurance without providing jobs for those out of work. The $17 trillion federal debt cannot be paid off under this system. State and local governments will continue to be unable to pay off their $3 trillion in debt under this system. Citizens will be unable to pay off their $16 trillion in mortgage and personal debt under this system. This is a system designed to put the 99% into debt slavery to the “too big to fail” private banking corporations. It is not broken, but rather doing exactly what it is designed to do.
Our country, founded on the statement “all men are created equal”, is now the most unequal industrial democracy on earth, indeed more unequal than many Third World countries. UNICEF ranks us last among 24 industrial democracies in childhood poverty and the Organization for Economic Cooperation and Development ranks us 28th of 30 member countries in inequality and poverty, trailing only Turkey and Mexico.
The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” Section 2A, Monetary Policy Objectives, The Federal Reserve Act
The Fed is incapable of living up to its objective of maximum employment, while at the same time maximizing profits for the private banking corporations that own it. The Clinton Administration solution in 1994 was to redefine unemployment so that it no longer counted the long term unemployed, unless they continued to jump through the government hoops at the unemployment office after their benefits had run out. They are now disdainfully referred to as no longer seeking work and thus not unemployed. This is how an economic recovery can be claimed and The Fed can appear on paper to be living up to its mission, while real unemployment rises and the official government rate drops.
Counting all those not working that need a job and those working part time that need a full time job, economist John Williams website Shadow Government Statistics pegs the real unemployment rate at 23%, after a steady climb from 20% at the beginning of 2009. Bogus government stats for the same period show a steady drop from 10% to 7% official unemployed. A recovery can be claimed and The Fed is living up to its charter. Welcome to “The Twilight Zone” of The Fed. http://www.shadowstats.com/alternate_data/unemployment-charts
This outrageous level of inequality is a direct result of the U.S. monetary policy of gifting the sovereign right to create the people’s money to private banking corporations and the private Federal Reserve System that these banking corporations own. There will be no relief for the American people under the current monetary system of debt money created by banks. Congress squabbles because the system in place cannot solve the problem. It is the problem.Here is the solution.
The NEED Act (National Emergency Employment Defense) Act, H.R. 2990 in the last Congress would:
- Create 7-10 million good paying jobs.
- Repair our crumbling infrastructure.
- Give each citizen a Citizen’s Dividend that could be $10,000.
- Give small businesses what they need, customers with money for their goods and services.
- Provide debt-free funds to overwhelmed state governments.
- Provide interest-free loans to desperately in need local governments, replacing interest-bearing bond financing.
- Pay off the national debt, as it comes due.
It would do so by instituting 3 major, necessary reforms:
1) The Federal Reserve System is dismantled and good parts are placed into the U.S. Treasury. Most Americans think that the Federal Reserve System is actually a federal agency. The NEED Act accomplishes this. A Monetary Authority within the Department of Treasury will then determine how much debt-free U.S. Money to create in keeping with The NEED Act’s charter to be neither inflationary nor deflationary. While the Monetary Authority will determine how much money to create, it will have no say on how the money is used. This remains the Constitutional function of Congress.
2) Accounting rule changes prohibit banking corporations from creating debt money via fractional reserve lending–the process in which banking corporations literally create money out of thin air when they make a loan to the 99% and create a deposit equal to the amount loaned to the customer to balance the banking corporation’s books. This sleigh-of-hand process is decisively ended. Future bank lending would consist of banking corporations lending monies that they actually had. This is what the majority of Americans mistakenly think happens now.
3) The Congress originates (creates) new U.S. Money and spends it into circulation, for infrastructure, health care and education and does so debt-free. A Citizen’s Dividend is paid to each citizen that could be $10,000. These funds will be available from the Federal Reserve System’s Open Market Account (SOMA). The NEED Act specifically referenced spending $2.2 trillion the American Society of Civil Engineers estimated in 2009 was needed for repairs to our crumbling infrastructure. Their more recent 2013 report estimates that $3.6 trillion needs to be spent on infrastructure repairs by the year 2020. This increases the number of jobs to be created from 7 to 10 million.
The NEED Act is available here
False Reforms Will Not Work Now
There is a move to create state banks like the state owned Bank of North Dakota. But state owned banks will continue to create debt money, the only difference is that it will be created by a state owned bank. While this might be marginally better than the current system, the actual gains for the people will be very limited and nothing will be done to stop the creation of debt money by private banking corporations. In fact they will work hand in hand together in continuing to create debt money as they do now in North Dakota.
Money creation belongs to the nation and should be done debt free as it will be done in The NEED Act. Other banking functions can and should continue to be done by private banks, but regulation of these private banking corporations is very much a function of the federal government and will be done under The NEED Act.
In fact a very strong case can be made that legitimate private banks will be able to flourish under The NEED Act. They just won’t be creating our money supply as debt. With 10 million new good paying jobs created in infrastructure repairs and with a total of $3 trillion in Citizen Dividends, the American people can begin to repair their financial health. We will have money to invest in banks. The banks will then be able to loan this actual money out at a modest interest rate, benefitting all in society.
Local currencies and other inventions like the Bitcoin, while well intentioned, are merely diversions away from the systemic change that is desperately needed and accomplished by The NEED Act. Focusing on The NEED Act will get us what we need, focusing on diversions will keep the Money Power right where it is now with the wealthy and their “too big to fail” private banking corporations.
You Are Needed
Changing such an unfair monetary system that has its tentacles in every department of government is no small task. But it is the task we are given if we are ever to restore some level of democracy and equality to our nation.
The website for the American Monetary Institute the leading advocate of The NEED Act is http: https://monetary.org/
We the people need to educate, advocate and organize.
- Learn more about the Federal Reserve, the NEED Act and real monetary reform. Go to https://monetary.org/
- Share information about the American Monetary Institute (AMI) and the NEED Act via discussions, meetings, email and social media
- Write or, better, meet with your Congressperson or Senator. Inform them about the NEED Act. Ask them to work with AMI to introduce a new version. For those of us that feel strongly enough about the need for real monetary reform, tell your Congressperson and Senators that their active support of The NEED Act is necessary to receive your vote.
- Finally, don’t lose hope. The current monetary system is unsustainable. Fundamental change is inevitable. Those who have defended and bolstered our unjust and undemocratic monetary system for the last century benefiting banking corporations over people will deservedly lose credibility. That’s when we must be ready with knowledge, conviction, organization and a plan to provide real monetary reform. Because if our plan The NEED Act is not presented to the American people, those that own the “too big to fail” banking corporations and our government will certainly be ready with a ‘solution’ that is even worse than our present reality.
Nick Egnatz is a Vietnam veteran. He has been actively protesting our government’s crimes of empire in both person and print for some years now and was named “Citizen of the Year” for Northwest Indiana in 2006 for his peace activism by the National Association of Social Workers.
Contact Nick OccupyNick@yahoo.com