H.R. 2755 to Abolish the Federal Reserve

http://www.picassodreams.com/picasso_dreams/2007/06/hr_2755_to_abol.html ^ | June 17, 2007

[DugwayDuke]

“As for you, Dugwayduke, I can only assume that you haven’t taken the time to learn the facts, or you are incapable of understanding truth. I hope you wake up and stop being a sheeple.”

I certainly hope that you take the time to research what happens to those who act upon this kind of ‘information’ about federal tax law. They wind up guests in federal confinement. You may make all th claims you like, but you will lose and lose badly. Please carefully consider the consequences before you take this kind of advice.

[G-khan]

Everyone should see this movie “Money as Debt” best and very simple explanation of money and how to end up getting rid of the Fed..

http://video.google.com/videoplay?docid=-9050474362583451279

Should be part of basic education in our schools.

[iconoclast63]

There is no influence on the future of our society more insidious than the existence of a debt based currency. When the monopoly of currency creation is turned over to a private, elite group of business, in whose expertise we all depend upon, it should be no surprise when their actions tend to benefit their own interests at the expense of the people at large. Debt and inflation benefit the INVESTOR class, the owners, and hurt the rest of us. See quote:

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta Georgia, said:
“This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defect remedied very soon.”

[Moonman62]

I suggest you become an INVESTOR. It's not hard to do.

And Hemphill made his statement in 1939. I'd say his prediction wasn't very timely.

[iconoclast63]

By becoming an INVESTOR I am merely perpetuating an already corrupt system. Reform of money can, and someday will, change the world as we know it. Over the course of the last century we have enjoyed vast improvements in productivity through technology. These improvements should logically lead to a slow decrease in the pressure to produce upon each individual in the economy, but, rather than a decrease, we are suffering under an ever INCREASING amount of pressure for growth. This pressure is a direct result of mounting debt burdens spawned by the debt based nature of our currency. This burden will increase until critical mass or such time at the total interest obligation on the aggregate debt load in the economy finally surpasses the money supply and the entire system will collapse.

History records no successful example of a debt based, fiat currency. Not one, ever.

The choice is simple, a just system or an unjust one.

[Moonman62]

I do think investors have been treated better than wage earners for some time. What do you expect when higher wages are incorrectly blamed for inflation? This is because of bad theory and incorrect policy. Wages are suppressed both through monetary policy and illegal immigration. The fact that we have a fiat currency has nothing to do with it. What we need is correct theory and proper management, but in the meantime it wouldn’t hurt to invest.

[iconoclast63]

Are you even reading what I am typing? Ok, one more time. Debt based fiat currency will eventually collapse the global financial system. I will talk about what that means in a moment but first, here is WHY it will happen. When banks possess the government granted privilege to create money this process extracts a tribute from the economy at large. Through fractional reserve banking they CREATE money when they grant loans. What they create, though, is the principle ONLY. Therefore the interest paid by the borrower is a net drain on the local, state, federal and ultimately global economy. This interest tribute is paid to the banks simply because they create money, for no other reason. So not only is interest paid on loans a net drain on the economy, it is also UNEARNED. The ultimate, tragic result of this will be global economic collapse, as the interest burden eventually exceeds the productive capability of the economy. With this collapse you will see massive defaults on existing debt obligations which will bring with them a huge "land grab" as INVESTORS collect their collateral. This is what Thomas Jefferson was talking about when he said; "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -Thomas Jefferson

[Moonman62]

Through fractional reserve banking they CREATE money when they grant loans.

You'll probably have a stroke when you learn that only checking accounts require reserves these days.

What they create, though, is the principle ONLY. Therefore the interest paid by the borrower is a net drain on the local, state, federal and ultimately global economy. This interest tribute is paid to the banks simply because they create money, for no other reason. So not only is interest paid on loans a net drain on the economy, it is also UNEARNED.

What about the interest banks pay to depositors? How about the risk they assume for defaults? What about their expenses for computers, networks, buildings, security, electricity, maintenance, and employees? If you think banks are making money for nothing, then buy stock in them you conspiracy minded kook ;-)

[iconoclast63]

I am aware that liberalized FED policies have reduced the reserve requirements to zero in most cases today, expanding further the banking system’s ability to create money and credit. This is a veiled attempt at forestalling the inevitable downfall of the dollar as foreign central banks are losing their appetite for US debt. When you talk about operating expenses and interest paid to bank customers you are failing to mention that banks sell a product they create out of thin air, therefore their profits will always be sufficient, notwithstanding the virtually endless fees they charge for almost every type of transaction.

This will be my last attempt at explaining this to you. To defend bank created money is to defend a system, ultimately based on fraud, that has existed in some form or another since the middle ages. History is replete with examples of an educated populace becoming aware of the injustice and forbidding the practice of fractional reserve banking. This prohibition only lasts a few generations though, because time distances from the minds of the people the evils of this pernicious injustice.

Whenever the banks are defeated they merely sit back and wait for the mindless sheep to forget the bank failures and economic chaos their system visits upon the people. Eventually they show up again, with government permission, and fill the economy with cheap credit, creating the illusion of growth until the people wake up or the system collapses.

Finally, estimates say that the American people are in debt to the tune of over $40 trillion at present. The total M3 money supply is around $10 trillion. In other words, between personal, corporate and government debt, we owe 4 times the amount of money that exists on earth. Considering that the only way to create NEW money is with NEW debt, how long do you think this set up can continue?

[Toddsterpatriot]

It may volunteer to return the unused profits of lending money it creates out of thin air to the government, but the shareholders are the National Banks and not the people in whose name the money incurs an obligation, the taxpayers of the United States.

The money printed by the Fed does not incur an obligation by the taxpayers of the United States.

If Congress wanted to re-assert full control of the Fed by purchasing its stock back, how would you “mark to market” the value (in terms of dollars) the company that has the monopoly on creating dollars?

It's easy. If they bought $1,000,000 worth of stock, they have to sell it for $1,000,000.

It makes possible borrowing without ever having to repay. Why repay when you can inflate debt away?

I never knew that buyers of government debt were unaware of inflation and didn't add that to the interest rate they require.

when the Fed creates money, it allow government to purchase goods and services from the very citizens who created the wealth upon which the money supply is based.

The Fed doesn't give the new money to the government to spend. Did you write this silliness? Or did Ron Paul?

No Big Spender nor supporter of big and Bigger government will give Paul’s bill the time of day.

Neither will anyone who understands economics or the money supply.

[Toddsterpatriot]

give the treasury back the power it once had before 1913. Similar to e.o. 11110 introduced by kennedy

Explain why we should care. Is money issued by the Fed somehow bad for America? Is money issued by the Treasury somehow good for America? Why?

[Moonman62]

I think the solution is for you to move to a country where there is full reserve banking or whatever system makes you happy. Islamic countries claim to have such a system, even though in practice that’s not the case. I’m perfectly happy to stay in a country that has a system where money is put to work, instead of the equivalent of being buried in a tomato can in the back yard.

[Toddsterpatriot]

Also, check out how the fed actually was passed by congress....christmas break...small group of congressman....

Really? How many Congressmen voted? What were the results?

[Toddsterpatriot]

To whom did the financial benefit accrue? Only to the shareholders of the Federal Reserve corporation (the national banks) because the Federal Reserve was able to print money to pay for it.

The shareholders don't get any of the "profits" earned by the Fed.

If you think that you own, in the full legal meaning of the word, the Federal Reserve Notes that are in your wallet, just change one of them, say by putting Alfred E. Newman’s drawing over Lincoln’s face, and then take it down to your local bank to deposit.

Deface your FRNs all you want. Don't expect someone else to accept your defaced bills.

[Toddsterpatriot]

Tie the issuance of FRN to real physical reserves of gold/silver.

Not enough gold and silver. Sorry.

[Toddsterpatriot]

Should be part of basic education in our schools.

They already teach enough crap in the schools. Adding "Money as Debt" is just piling on more crap.

[Toddsterpatriot]

History records no successful example of a debt based, fiat currency. Not one, ever.

That's why all those gold backed currencies are still around. LOL!

[BlackJack]

Right on

[Toddsterpatriot]

When banks possess the government granted privilege to create money this process extracts a tribute from the economy at large. Through fractional reserve banking they CREATE money when they grant loans.

If I deposit $1000 into the bank, how much can the bank loan out based on my deposit? How much money can they "CREATE"?

[Toddsterpatriot]

When you talk about operating expenses and interest paid to bank customers you are failing to mention that banks sell a product they create out of thin air,

Then how could a bank ever fail? Why did the S&L crisis require a Federal bailout? Why didn't they just "CREATE" money out of thin air?

Finally, estimates say that the American people are in debt to the tune of over $40 trillion at present.

Who came up with that estimate? Source?