I think you need to explain what those feds action were (sic) to a lot of
other fellows, because most people are likely to think you're full of crap.
In your own words, please, because you tend to quote people who actually
contradict what you say.
Any gold reserves are not in any way tied to Federal Reserve notes,
except the fed claims to hold the gold in fort knox as collateral on the
ummm.... I'm not too knowledgeable about the history of Europe's
banking system, but all of these bank runs appear to be with currency
issued by a privately owned bank. Certainly England's bank was and still
is. The primary reason for the revolutionary war was to break England's
control of the currency of the American colonies. Show me economic chaos
from 1776 to 1913, which is when the government issued it's own
currency. The panic just before the Fed was created don't count because
it was actually caused by the people who were behind the creation of the
Fed who would own it.
What obligations? They can print money from nothing. Inflation is an
increase of the money supply faster than the increase of goods. Look at
the history of inflation. We had sustained inflation year after year
long before Nixon took us off the gold standard. Look at the wild
inflation and deflation after the fed is created in 1913.
They tightened the grip on the money supply. They create money out of
nothing. They don't need to call in loans. The only politician who dared
try to impeach board members of the Fed was assassinated.
I'll agree there is a need for a central bank, but it does not belong in
private hands. They create money out of nothing, then loan it out to the
federal government at interest which is financed by personal income tax
which was created the same year as the Fed.
Where does inflation come from? It is the increase of the money supply
faster than the increase of goods. That money has to come from
somewhere. It comes from the fed which creates it out of nothing. We
fought a revolution to get out from under that system.
Here's several excellent videos on it: (several hours)
"Money Masters" is about the Fed and the income tax to finance the
federal debt of money from nothing:
also, "Money, Banking and the Federal Reserve":
Freedom to Fascism
Zeitgeist - kinda goes off on a tangent with some anti-religion fuzzy
logic, but has information about how the Fed caused the Great Depression
and then got super rich on it:
How? If each thirty five (pick your number) dollar bills were backed
by one ounce of gold in Fort Knox, there is no way to create more
money without acquiring more gold.
Demonetizing first silver and then gold have left the dollar backed by
nothing but our full faith and credit and the productiveness of the
American worker. Since the American worker now flips burgers in a
service job, no new wealth is created. America makes very little and
our dollar is now backed by our outstanding good looks and a very
Tying currency to gold was the way to prevent that state of affairs.
We cut it loose - with predictable results.
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