The need for a new system. Whats wrong with our current currency?
The Rise and Fall of the Federal Reserve Note
Our current currency is based on Federal Reserve notes. Many people are not aware that this is a relatively new system in the United States and has only been in place since 1913 and was signed by president Woodrow Wilson. Since this time, we have seen two major economic down turns and many smaller ones. One in the 1930s known as the great depression and the other in our life time in the early 2000s which was caused mainly by the housing market bubble crash. The federal reserve is in reality not a federal entity but a third party corporation. Congress and the US government in general have very little oversight or even transparency. This system operates on fractional reserve banking which means that for every $10,000 in deposits a bank receives they can loan out $100,000. This perpetuates a currency backed by good faith and an exorbitant amount of debt
We officially removed all backing with gold in 1971, but the process started much earlier. Here is a quote from history.com about the removal of the gold standard.
“On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.”
- http://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard
Our current currency is based on Federal Reserve notes. Many people are not aware that this is a relatively new system in the United States and has only been in place since 1913 and was signed by president Woodrow Wilson. Since this time, we have seen two major economic down turns and many smaller ones. One in the 1930s known as the great depression and the other in our life time in the early 2000s which was caused mainly by the housing market bubble crash. The federal reserve is in reality not a federal entity but a third party corporation. Congress and the US government in general have very little oversight or even transparency. This system operates on fractional reserve banking which means that for every $10,000 in deposits a bank receives they can loan out $100,000. This perpetuates a currency backed by good faith and an exorbitant amount of debt
We officially removed all backing with gold in 1971, but the process started much earlier. Here is a quote from history.com about the removal of the gold standard.
“On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.”
- http://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard
Since then we have moved unofficially towards what is known as the petrodollar meaning that our currency is propped up by the unsustainable fossil fuel industry. This requires that anyone buying oil from our allies, mainly Saudi Arabia, in the middle east must buy the oil in US Dollars. This sheds some light as to why the United States has been heavily involved militarily in the Middle East.
In summary, the US Dollar is now a Federal Reserve note printed and controlled by a private corporation known as the Federal Reserve. The treasury is no longer in charge of the money supply. The United States BORROWS its money from a CORPORATION and pays interest. In the Last 100 years, the dollar has been completely removed from all associative value with gold. This standard has been loosely replaced with the Petro-Dollar system which gives value to the dollar by making it the only accepted currency to buy oil. This petro-dollar system is enforced and held in place by the United States military might and invasion of all countries who try to accept another form of currency as payment. The united states dollar can also be thought of as backed by debt. Since the switch away from the gold standard the national debt has grown exponentially making the US the #1 debtor in the world. Federal reserve notes symbolize debt slavery, oil dependency backed by military force, and a corporate monopoly of the money supply.