On The Necessity For Ending The Federal Reserve

From The Patriot Word:


Thursday, September 30, 2010Patriot Paper #1: Necessity for Ending the Federal Reserve

Patriot Paper #1: Necessity for Ending the Federal Reserve



To People of the United States,



Today, slightly more than 234 years after the several states elected to band together to throw off oppressive tyrannical government we find our situation again wanting for substantial changes. The American Dream has been gradually smothered and we must look deep into the ashes in order to find the embers of freedom from which to re-ignite the flames of freedom.



Protection of the creator-endowed, self-evident Rights to Life, Liberty, and Property are the reason for which our government exists, according to the Declaration of Independence. This idea while compromised has never been abandoned and appears in both the fifth and fourteenth amendments. As such, the current supreme law of the land forbids depriving any person of their property save by due process of law. This is a reflection of a fundamental moral law recognizing the immorality of theft, in other words, “thou shall not steal.” A government cannot change an immoral action into a moral action by legislation.



The Federal Reserve has been depriving Americans of their property since it was established in 1913, without due process of law meaning a jury trial and is in direct violation of the United States Constitution. Recognizing that the Federal Reserve does not create money they only dilute it, is fundamental to this discussion. Since leaving the gold standard in 1913, the US dollar has lost 98% of its value; this is the direct result of the Federal Reserve’s “money creation” scheme.



Since 1913, our entire financial system has been based on a fraudulent scheme wherein money is loaned by entities that don’t have any money to loan. This fraudulent process dilutes the equity of our money to facilitate loans and in the process deprives the holders of money of their property without due process of law, a violation of the 5th and 14th amendments not to mention the so-called self-evident truths of natural laws.



To make matters worse, there is no Constitutional Justification for the existence of the Federal Reserve. No specific authority can be found in Article 1, Section 8 of the United States Constitution for establishing a Federal Reserve Bank as such the imagined power to do so can only be justified via the “necessary and proper clause” Article I, Section 8, Paragraph 18 which states, “To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by the Constitution in the Government of the United States, or in any Department or Officer thereof.”



In spite of the illogical position taken by our Supreme Court, the word "necessary" means something without which it is impossible to succeed at the proposed task. With this in mind we look at the Article 1 Section 8 powers of Congress that could not be accomplished without the existence of a Federal Reserve bank and none can be found.



A national treasury department is more than sufficient for coining money and regulating the value thereof. Authority to regulate the value of currency this is not authority to dilute of the value of currency without compensating the holders in due course for equity lost via dilution. The reason that no such authority exists is because it violates the most fundamental principles of property rights. Neither the complexity nor the scale of the scheme changes its fundamental nature, theft is theft plain and simple.



While the Federal Reserve will tell you that their system has been the driving force behind American and even worldwide economic development the facts are quite different. The Federal Reserve was created in 1913 and the United States had already grown from scratch to the world’s largest economy without its existence.



An engine is a good analogy for an economy, the more fuel you give it the faster it turns and the more power it produces. The fuel of economic engines must be purchased and the Federal Reserve every time the Federal Reserve “invents money” they dilute the purchasing power of the money that all others hold increasing the cost of the fuel. Monetary devaluation forces a permanent state of impoverishment onto the American people and has caused countless businesses to failures by forcing higher than necessary capital to be maintained in order to compensate for devaluation. No justice is done on behalf of the defrauded dollar holders when interest rates are raised to control inflation or lowered to stimulate economic activity; the original equity theft is never corrected and contributes nothing to the economic situaiton.



Using the Federal Reserve (monetary policy) to fix the economy is like using Quaaludes and Speed to fix your health. You don't fix a tax-suffocated economy by giving it hallucinogens or pain-killers for that matter.



Theft of Equity and manipulation of interest rates distorts both the cost of borrowing money and the value of money itself. The Federal Reserve is the cause of and not the solution for monetary devaluation (price inflation in banker talk). The reason for this is simple; the primary function of the Federal Reserve has been to accommodate government overspending. Our government spends roughly 75% more than it collects in taxes, the federal reserve in combination with the United States Treasury Department accommodate this spending by devaluing our assets and putting us in-hock to buyers of treasury notes, the interest of which consumes 90% of our current tax receipts.



Holding the US Dollar would be an excellent investment if it weren't for the continuous devaluation of the dollar by the Federal Reserve. With a fixed money supply, or a stock-split holder in due course compensation program the increased equity created by American ingenuity and productivity would be reflected in an increasing scarcity of dollars which would raise their value naturally.

The reason that Americans do not save is not that they have an uncontrolled urge to spend; it is because the purchasing power of the dollar gets smaller over time as a result of theft! Like any investment with a negative return, common sense dictates that you not hold assets of this type.

In addition to being an unconstitutional institution with the immoral mission of wealth redistribution and equity theft, the Fed does more damage than good when applied to the economy.



Shut it down now and charge its board members and commissioners with Conspiracy to Defraud the American People, Fiscal Malfeasance, and Treason…



Humbly and Sincerely,

A Patriot

by Walter L. Brown Jr.

Posted by Walter L. Brown Jr. at 2:58 PM