The Federal Reserve Act of 1913 transferred authority over the U.S. money supply and banking system from Congress to a private banking elite, allowing them to generate money from nothing, provide loans to the Government, and collect interest on those loans. It was passed Dec. 23, 1913, when most of Congress was on holiday. In 1974, Congress clarified the role of the Fed, which is to promote: 1) maximum employment and 2) stable prices. These, time has shown, are lies to the American People. The Federal Reserve is a foreign entity, a private bank, operated not by the Federal Government of the United States, but by an untrustworthy banking elite.
Case for Repealing the Federal Reserve Act of 1913 and Returning to the Silver Standard
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Loss of MONETARY SOVEREIGNTY
The Federal Reserve operates independently from the United States Congress, leading to decisions that prioritize the interests of elite bankers over that of the broader economy. This detachment has resulted in monetary policies that can increase economic inequality and promote financial instability. Repealing the Federal Reserve Act would restore monetary sovereignty to We The People’s elected representatives. -
INFLATION and CURRENCY DEVALUATION
The current fiat currency system has led to persistent inflation, eroding purchasing power over time. The ability of the Federal Reserve to create money without tangible backing has contributed to cycles of boom and bust, leading to economic instability. A return to the Silver Standard would provide a more stable monetary framework, limiting the Fed’s ability to inflate the currency arbitrarily and protecting American consumers from the adverse effects of inflation. Inflation is a powerful weapon, and it causes unbelievably horrible damage to both the lower and middle classes alike. -
HISTORICAL PRECEDENT FOR STABILITY
Historically, commodity-backed currencies like the Gold or Silver Standards have provided more stable economic environments. Silver, as a tangible asset, would restrict the money supply, promoting responsible fiscal policies. Countries that have utilized commodity standards often experienced less volatile economic cycles compared to those relying on fiat currencies. -
Encouraging SAVINGS AND INVESTMENTS
Savings and long-term investments would be encouraged by a more stable currency value under a silver standard. On the other hand, because the American People and businesses cannot depend on the currency’s value remaining steady, the current system frequently encourages short-term speculation. An economy that rewards sound financial management is fostered by a system backed by commodities. -
REDUCING CENTRALIZED POWER
The concentration of monetary power in the hands of an elite few has led to significant moral problems and a disconnect between the financial elite and the average American Citizen. Repealing the Federal Reserve Act would dismantle this centralized power, fostering a more decentralized financial system that promotes accountability and responsiveness to the needs of the public, of the American People. -
INCREASED TRANSPARENCY AND TRUST
The Federal Reserve operates with a level of opacity that can breed distrust among the public. A return to a silver standard would necessitate greater transparency in monetary policy, as the money supply would be directly tied to tangible, valuable assets. This could help restore trust in the financial system and promote greater public engagement in economic matters.
PRESIDENT JOHN KENNEDY’S EXECUTIVE ORDER 11110
On June 4, 1963, President John F. Kennedy signed an executive order which returned to the federal government, specifically to the Treasury Department, the Constitutional power to create and issue currency without going through the privately owned Federal Reserve Bank. President Kennedy’s Executive Order 11110 gave the Treasury Department the explicit authority: “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury…” The Government could then use the silver bullion that is physically stored in the U.S. Treasury’s vault to create new currency for each ounce of silver that is kept there. Consequently, the $2 and $5 denominations of US Notes were introduced into circulation, totaling over $4 billion. President Kennedy understood that if silver-backed United States Notes become extensively distributed, the demand for Federal Reserve Notes would be greatly diminished. United States Notes were backed by valuable silver; Fed Reserve Notes are backed by nothing of inherent worth or value. President Kennedy’s Executive Order 11110 would have prevented the national debt from growing to its current level. This EO also gave the Federal Government the ability to repay previous debts without borrowing from the privately controlled Federal Reserve, which charged both principal and interest on all new money it created. Finally, EO 11110 provided the United States the right to establish its own money backed by silver, giving our money actual value and worth. President Kennedy’s Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. Therefore, it is possible for the United States to uphold the EO and also repeal the Federal Reserve Act of 1913.
THE CONCLUSION OF THE MATTER
Repealing the Federal Reserve Act of 1913, returning to the Silver Standard, and upholding President Kennedy’s Executive Order will be a bold step toward restoring economic stability and accountability for and in the United States of America. By anchoring currency to a tangible and valuable asset—like gold or silver— the United States can foster a more resilient economy, protect her Citizens from the pitfalls of inflation, and create a financial system that serves the broader interests of American Society rather than a select, foreign few.