Fiat Currency and the Federal Reserve (post#2)

     Probably one of the most important things I learned outside of public school was exactly how our currency was devised and how the federal reserve banking system works. I definitely did not learn this in public school! I think the most we learned was how to fill out a bank register for a savings account, and how to write checks. Now, I know what you're thinking, that this will be the most boring blog post ever, but just hang with me, it comes with a Simpson's style cartoon film, even.

     Now, of course I knew all the basics, that we founded a new country because of unfair taxation, and that we had originally had a system of money based on the gold standard. I knew that the Federal Reserve is NOT a govenrment agency, no matter what their website URL implies it is. Did you? What I didn't know, however, was how horribly that system was corrupted to get us to the highway robbery we have today. What really disturbs me, is that this is a major thing that should be taught in every school. EVERY student should know this before they hit puberty and begin to receive an allowance. They should know that paper bill is just a paper bill and has no real value. The value is just implied by the ink printed on it, and that it's true value is being changed every day, everytime the Fed decides to print more, making it worth less and less. Okay, so who exactly IS the Federal Reserve?

     What most people don't know is that the Federal Reserve is a private corporation. It is run by a Board of 'Governors' (Directors), just like any other corporate business in the world. However, the Board is elected by the President of the United States, and confirmed by the Congress.  Get that? It comes from the number one rule of business for ass(et) protection: Own nothing, control everything. The US government does not own the Fed, but it controls everything it does. And while the Reserve claims to be 'helping' the economy by printing and borrowing more money, the truth is, the more money they print, the more it devalues the dollar, and we get inflation. Why? Because, the less the dollar is worth, the more of them you need to pay for a good or service of constant value. A gallon of milk is a gallon of milk is a gallon of milk. If the value of the dollar gets halved, then that $3 gallon of milk, then becomes a $6 gallon of milk, not because there is more value in the milk, but because of less value in the dollar.

     Personally, I think if we are going to save our economy, we literally need to 'stop the presses'. It used to be that the value of the dollar was backed by an amount of gold. When the banking system was revised to allow ten to one borrowing against that standard, we got our current credit system. But now, with the out of control debt spending, there is no way we can catch up to paying the amount owed to our creditors. Even worse, in 1971, Richard Nixon removed the United States and our dollar off of the gold standard, so there is NO security backing our currency. Apparently there are some people paying attention to the fact that eventually non-stop money presses, eventually get us a worthless dollar, zero, nada, not even a penny's worth, as Kenneth Schortgen Jr. states in the Daily Economist, "And now, in 2012, we are at a point where no amount of money printing by the Fed, and no amount of borrowing by Obama and the Treasury can create or sustain growth in the economy.  Keynsian economics relies upon debt and borrowing to sustain economic growth, but at a certain point, money loses its value so greatly, that each successive scheme requires more and more printing than the prior bubbles.  Eventually, no amount of money will create a recovery, and the global economy is entering that point in history. "

     Okay, now if any of this has confused you, it will all be laid out fairly clearly, in the following film The American Dream, by The Provocateur Network.

     But before you go, show of hands, how many readers were not taught in detail about how the dollar was valued, and how the Federal Reserve works? Why do you think it is not emphasized in our government schools?

http://www.youtube.com/watch?v=ZPWH5TlbloU&feature=plcp