The Federal Reserve System: Modern Fascism and Absolute Power

Topics: Federal Reserve System, United States, Currency Pages: 5 (1737 words) Published: September 8, 2008
The Federal Reserve System: Modern Fascism and Absolute Power

Most Americans feel the United States of America is a beacon of democracy and raw capitalism, the leader of the “free” world. In theory, this is a perfectly well-reasoned assumption. The founding fathers had every intention of turning the new world into a full fledged democracy, devoid of any monarchy or source of totalitarian power. The constitution itself demands that our government be “of, for and by the people”, and be divided into complex units of checks and balances, designed to thwart any potential power struggle by one specific branch. In essence, the constitution of the United States is a perfect blueprint for democracy in its purest form, with power and control in the hands of its citizens. Unfortunately, this is not the case today. By giving up the right to print its own currency in 1913, the US Government bequeathed its powers to a select few, who have owned and operated this country ever since. They are the true masters of US domestic and foreign policy.

Just like a corporation issues shares of stock to function as a productive entity, a country has to issue currency in order to fund its operations. This currency is the lifeblood of a nation, creating wealth for its citizens by fostering economic development and providing public infrastructure and services. In a true democracy, the government is owned by the citizens and operated by representatives of the population as a whole, who control and more importantly regulate the issuance of this currency. This is a critical point to remember.

Just like a public company [that issues too much stock] can be punished by the public markets for diluting its share structure, a nation’s currency can suffer the same effects through inflation if the government prints too much money relative to the value of the economy. This can be considered a hidden tax and represents a loss of buying power for a nation’s citizens. This loss of buying power [if left unchecked] destroys private wealth and can completely wipe out a country’s middle class, creating only two groups of citizens: the poor and the ultra-wealthy. Without a functioning and thriving middle class, a country is nothing more than a failed state. Because of this, the act of creating and regulating currency must be kept in the hands of those it serves (ie. the people). Any type of transference of this “absolute power” into private hands gives that person or entity complete control over a nation’s people and government. Why? Through the power of devaluation.

Devaluation is basically “instant inflation” or “hyperinflation”. Overnight, devaluation can lower the value of a nation’s currency which in turn lowers the buying power for its citizens relative to other currencies. An example of this can be recalled from the 1997 Asian Financial Crisis, which started when the Thai Baht was devalued and Thailand’s stock market lost 75% of its value. Within a matter of days, the people of Thailand saw their savings destroyed. In essence, devaluation is the ultimate weapon since it can destroy an entire nation, but leave its wealth (ie. infrastructure) intact. One can quickly see why this power must never be transferred to private hands, yet this is exactly what happened to the United States in 1913.

When the Federal Reserve Act was passed on December 23rd, 1913 , the power to print US currency was transferred from the public government into the hands of a private Delaware corporation , known as the Federal Reserve System. From this point forward, the United States Government was no longer issuing its own currency and instead, had to borrow money from a “private bank” and pay interest on the loan. For 94 years, the United States has been at the mercy of a single entity who with the stroke of a pen, could transfer an entire nation’s wealth and wipe out the entire middle class. Americans may vote for a political “choice” every four years, but the results for any...
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