The Rule Book: Part 2

After the football analogy in my last post, “The Rule Book,” I touched on the pledge our newly elected U.S. Senator and House member will be making in a group with others newly elected to Washington D.C.  Essentially, they will promise to be faithful to, support and defend the U. S. Constitution.   I am now asking them to make a specific pledge prior to the election to rid our nation of a plague, the existence of which is contradictory to our Constitution.

So, what is this plague, this pestilence that is ruining the country – a plague Congress has the constitutional authority to eliminate?  It is our central bank, the Federal Reserve Bank (the Fed).  The very existence of the Fed is contradictory to Article I, Section 8, clause 5 in our Constitution.  This clause clearly mandates that Congress shall have power to “coin (our) money, (and) regulate the value thereof….”

Actually, I’m in revered company in concluding that there is no need for the Fed.  Benjamin Franklin, presidents Thomas Jefferson, James Madison, Andrew Jackson, Abraham Lincoln, Teddy Roosevelt and other luminaries like Henry Ford, Thomas Edison and ten-year U.S. House member from Minnesota, Charles Lindbergh Sr., all embraced that same conclusion.  None of these American giants were intellectual lightweights.

The Fed is a secret cartel of large private banks that is unrelated to our federal government.  Because of the Fed and our several previous similar central type banks, the United States has accumulated a national debt of over 16 trillion dollars, way more than we can ever pay back regardless of the myriad cockamamie schemes advanced by our current politicians and TV pundits.

A news story on page A2 of the Duluth News Tribune on October 13, 2012, reported about our country’s budget gaps since 1990.  The gap “between the government’s tax revenue and it’s spending – totaled $1.1 trillion” just in 2012.  The article goes on to say, “Put simply, that’s how much the government had to borrow” (in other words the amount the national debt increased in 2012 alone). You see, the $1.1 trillion “borrowed” for 2012 is a debt that you and I are expected to pay back eventually and this debt accumulates interest besides. That little phrase in the news article “had to borrow” jumped right out and slapped me in the face!  By no means did the government HAVE to borrow a single penny.

According to our Constitution, Congress exclusively has the authority to print and regulate the value of our money.  However, the Federal Reserve Act of 1913 purportedly transferred that authority to the Fed.  So here is a bare bones explanation about how this “borrowing” from the Fed basically works.

If the  amount of money that, by law, must be spent in a given year is not covered by what was collected in taxes, The Treasury prints and delivers to the Fed an equal amount in government bonds which the Fed is to “buy” from the Treasury and later sell to the public.  So, where does the Fed get this money to “buy” these bonds?

Because of the Federal Reserve Act of 1913, the Fed tells Treasury to print that money (the Federal Reserve Notes like the money you have in your pocket) in the amount equivalent to the bonds the Fed just received from Treasury.  The newly printed money is delivered to the Fed who gives it back to Treasury as “payment” for the bonds.  Treasury then deposits this returned money in commercial banks and starts writing checks on it for government expenditures.  If this appears to you to be a fraud, a cheap carnival shell game, well, you’re right, it is.  This slight-of-hand maneuver caused you and I to acquire another $1.1 trillion in new debt and the amount continues to grow because of the accumulating interest.  That interest is paid out of the federal taxes you pay. So essentially the money coming out of your pocket that you pay in taxes goes directly into the pockets of those rich enough to buy the bonds in the first place and we, as citizens, get no benefit whatsoever for these interest payments we end up making.  Its just a transfer of your wealth to others.

One solution to this reprehensible, unnecessary scheme is to demand that Congress meet its duty to coin our money and regulate its value.  This new species of money would be printed by the Treasury Department and spent directly into the economy according to the budget Congress and the President agreed on for necessary goods, services, and the rest of the things governments are supposed to do for the citizenry.  This new money, also declared as Legal Tender, would bypass the Fed and would be DEBT FREE.  There would be nothing to pay back because nothing would have been borrowed in the first place and there would be no accumulating interest. This is exactly what President Lincoln’s Greenbacks were.  A few details would need to be worked out but this would by no means be impossible to achieve.  Other countries have done it recently and successfully.

The set-up we have today, with the the Fed bankers gradually and surreptitiously manipulating themselves into the middle of everything and raking in a cut for the bankers and others at the top at the citizen’s expense, is unconstitutional and accepting this is just as much a demonstration of lunacy as driving on an emergency trip from Duluth to Minneapolis by way of Fairbanks, Alaska.

The Federal Reserve Banking system, as it operates today, is not just unnecessary to the citizens of the United States, but it is an enslaving plague that must be eliminated.  And that is why I am asking our U. S. Senate and House hopefuls, Klobuchar, Bills, Cravaack and Nolan to now openly and specifically pledge that if elected, they will act on behalf of the citizens of our country to diligently work to eliminate the Federal Reserve Bank.

And if you are one of the thousands that read my blog, feel free to bring this one to the attention of the four hopeful candidates listed above.

Ken Kollodge

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