2nd August 2015
Guest Writer for Wake Up World
To most Americans, the notion of our government having been overthrown is the fodder of conspiracy nuts or the province of people out of touch with reality. However, not only do the vast majority of Americans have no clue our government was overthrown at the start of the 20th century, they also have no comprehension of the insane and exorbitant price we are collectively paying as a result.
America once truly was a land of freedom and opportunity, yet without our knowledge, everything changed upon of passage of the Federal Reserve Act in 1913. These changes where extensive in regard to how our government functioned, but from a citizen’s point of view nothing major or important happened. This was no accident but instead, an important aspect of their plan. The changes Americans would experience came slowly at first so nobody noticed or become alarmed, but eventually Americans were put on the rollercoaster ride we live with today.
Almost all Americans know something is terribly wrong with our ship of state, but most of us have no idea what is wrong or how it can be fixed. As a result, we sit back and watch helplessly as the American dream crumbles and dies around us…
How a Private Banking System Works
(The following is an been excerpted from Alan R. Adaschik’s book: “100 Years of Deception: A Blueprint for the Destruction of a Nation”.)
In 1913, Congress made the Federal Reserve Bank the central bank of the United States. This name is the epitome of deception. First of all, because of the passage of Amendment XVII, we no longer had a “federal” government. Amendment XVII transformed our federal government into a national government. Thus, there was nothing federal about the Federal Reserve Bank. Furthermore, it is not an agency or a part of our government. Instead, it is a privately owned banking cartel accountable to no one other than the people who own it. The Fed is not reserve of any kind and has nothing to do with reserves. Finally, it is not even a bank because no one deposits money with the Fed.
The best description which applies to the Fed is that it is a money pump for those who own it and this enables these people to harvest huge amounts of money from working Americans without giving them anything in return. In other words, the Federal Reserve Bank is a racket far worse than a Ponzi scheme or Mafia created con game. However, the tragedy of our situation is that the Fed is racket which Congress made legal by voting it into existence.
Money is a medium of exchange and the study of its use is called economics. In days gone by, bartering was the order of the day. If you had corn and wanted wheat, and I had wheat and wanted corn, we would decide how much of one commodity was equivalent to the other and make an exchange on this basis. However, bartering is an awkward process because of the unwieldy items involved. Obviously, exchanges of goods would be facilitated if people used something less cumbersome as a medium of exchange such as gold or silver. If I grow wheat, by exchanging my wheat for gold this permits me to obtain other things conveniently when I want them. Thus hard to find metals like gold and silver became widely used mediums of exchange.
Once people started using precious metals to trade goods, the need to transform these metals into standardized amounts became necessary. This led to the development of rudimentary coins; whereby a ruling authority would weigh out various amounts of these precious metals and stamp them as to purity and weight. Once this practice became common, it was only a matter of time before coins took on their characteristic disc shape and were impressed with a mint date and the likenesses of important officials. With the development of coinage, a person could exchange the fruits of their labor for coins and use them to obtain other things when convenient. During good times, some people ended up with more coins than they needed. Thus they had to find a safe place to keep them. This brought the goldsmith into the picture.
Goldsmiths worked with precious metals and as a result, needed a safe or strongbox within which they would keep their supplies. Having this capability, it made sense for people to take their excess coins to the goldsmith for safekeeping. Upon doing so, the goldsmith gave them a written receipt for the amount of coins being stored. Soon people realized that instead of trading coins for the things they needed they could conveniently trade the receipts instead. Thus paper currency was born and this blessing freed people from carrying bags of bulky coins when they went to market.
This rudimentary monetary system worked well in small agrarian economies, but as villages turned into towns and towns into cities, a need to borrow money developed and who was better positioned to loan money than the goldsmith. Not only did he have his own money on hand, but he also held other people’s money which was sitting in his coffers doing nothing. Of course, if the goldsmith was going to loan other people’s money, he needed to share some of the interest he earned with them. This was the start of modern banking. The goldsmiths were our first bankers. People would entrust their money to the banker/goldsmith and instead of paying for this service, he would pay them a share of the interest he received from loaning their money to other people. From a depositor’s or borrower’s perspective this made sense, was beneficial, and appeared reasonable. However, appearances can be deceiving and how deceiving will soon be addressed.
If people are going to borrow money from a goldsmith, for obvious reasons, it would be far more convenient if the loan was made in paper demand notes instead of coins. However, the demand notes presently in circulation were for all the coins held by the goldsmith. How could the goldsmith issue demand notes on coins which he did not have? Being a clever fellow, the goldsmith solved his quandary by reasoning as follows: It was a rare occurrence when someone retrieved all the coins they deposited with me. Therefore, if I issued demand notes for more coins than I had, the chances are that I would always have sufficient money on hand to cover the notes which were redeemed by one or even several of my depositors. This line of reasoning made sense, so our enterprising goldsmith went out on the limb and adopted this practice. Upon so doing, fractional banking was born.
No one would be injured or hurt by this practice unless there was a run on the goldsmith’s strongbox. Aside from this possibility, this development was a blessing to society. However, unknown to everyone else, it was a greater blessing to the goldsmith. In fact, it was so much greater that the goldsmiths became far wealthier than an average citizen. For every loan made by the goldsmith, the borrower had to pay the goldsmith not only the interest accrued by the loan, but also the total amount originally borrowed and this was true for every loan the goldsmith made. The borrower was happy because he was able to obtain something he wanted before he earned the money to buy it. The fact that this privilege also cost him the interest he agreed to pay did not dampen his enthusiasm. On the other hand, the goldsmith was far happier than the borrower. He was reaping huge returns from his loans and he was loaning money to every borrower in town. This state of affairs made the goldsmith very wealthy and it was this unconscionable wealth which positioned the goldsmith to hold sway over the institutions of society and in time, even over governments.
It is not right for one person to reap huge returns from someone else’s labor while doing virtually nothing themselves to earn the money they receive. This is why usury was a crime many early societies. In some places, the punishment for usury was death. While it is true that the borrower benefited from his loan, it is also true that until the loan is paid off, the borrower was an indentured servant to the lender. The lender owned a piece of the borrower’s time and efforts. In effect, this made the borrower a part time slave to the lender. In olden days, such a state of affairs was considered to be wrong and immoral.
Throughout history, knowledge about the nature of debt and its creation was a mystery to most everyone. The bankers took great pains to keep things this way. They knew what a tremendously good thing they had going. Therefore, their first order of business was to insure nothing upset this applecart. This is why most governments have never addressed or come to grips with this extremely unfair situation. The bankers were always there and more than willing to use their great wealth to persuade those in positions of authority to help keep their secret. Thus, concurrent with the advent of modern banking, we also have the advent of government corruption. These two things are inseparable and you cannot have one without the other. No one can honestly posture that central banking by a private bank is a good thing for the citizens of a nation. However, many people do and because they do, it necessarily follows that either they are complete fools or feathering their own nest. There are no other possibilities.
Governments should own and operate their own central banking system. If a private company is chosen to provide this service, the government involved should set the interest rate used by this company. Furthermore, said company should only be allowed to keep the interest they earn from their loans. This interest will be a sufficient return on their investment to keep them in business and provide them with reasonable profits. The monies paid to retire the loan, which are windfall profits to the bank, should be surrendered to the government involved and placed in its general fund. If this arrangement had been in place for the United States over the past 100 years, we would be blessed with everything we have today, but would not have a huge national debt hanging over our heads. Furthermore, there would be no need for an income tax and citizens would be able to keep and enjoy all the fruits of their labor. Instead, our elected leaders foolishly allowed the Federal Reserve to keep the windfall profits realized by creating credit. These windfall profits enabled the Fed to corrupt our government and many other key institutions of our society. These include corporations, educational institutions, the media, our entertainment industries, state and local governments, and of course, our Federal Government.
The following is a list of changes which would be to our benefit had Congress not passed the Federal Reserve Act.