Guest Post: The 10 Things That Would Be Different If The Federal Reserve Had Never Been Created
Reprtinted From The Economic Collapse
10 Things That Would Be Different If The Federal Reserve Had Never Been Created
The vast majority of Americans, including many of those who believe
that they are "educated" about the Federal Reserve, do not really
understand how the Federal Reserve really makes money for the
international banking elite. Many of those opposed to the Federal
Reserve will point to the record $80.9 billion in profits that the
Federal Reserve made last year as evidence that they are robbing the
American people blind. But then those defending the Federal Reserve
will point out that the Fed returned $78.4 billion to the U.S.
Treasury. As a result, the Fed only made a couple billion dollars last
year. Pretty harmless, eh? Well, actually no. You see, the money that
the Federal Reserve directly makes is not the issue. Rather, the
"magic" of the Federal Reserve system is that it took the power of money
creation away from the U.S. government and gave it to the bankers.
Now, the only way that the U.S. government can inject more money into
the economy is by going into more debt. But when new government debt is
created, the amount of money to pay the interest on that debt is not
also created. In this way, it was intended by the international bankers
that U.S. government debt would expand indefinitely and the U.S. money
supply would also expand indefinitely. In the process, the
international bankers would become insanely wealthy by lending money to
the U.S. government.
Every single year, hundreds of billions of dollars in profits are made lending money to the U.S. government.
But why in the world should the U.S. government be going into debt to anyone?
Why can't the U.S. government just print more money whenever it wants?
Well, that is not the way our system works. The U.S. government has
given the power of money creation over to a consortium of international
Not only is this unconstitutional, but it is also one of the greatest ripoffs in human history.
In 1922, Henry Ford wrote the following....
"The people must be helped to think naturally about
money. They must be told what it is, and what makes it money, and what
are the possible tricks of the present system which put nations and
peoples under control of the few."
It is important to try to understand how the international banking
elite became so fabulously wealthy. One of the primary ways that this
was accomplished was by gaining control over the issuance of national
currencies and by trapping large national governments in colossal debt
The U.S. national debt problem simply cannot be fixed under the
current system. U.S. government debt has been mathematically designed
to expand forever. It is a trap from which there is no escape.
Many liberals won't listen because they don't really care about ever
paying off the debt, and most conservatives won't listen because they
are convinced we can solve the national debt problem if we just get a
bunch of "good conservatives" into positions of power, but the truth is
that we have such a horrific debt problem because it was designed to be
this way from the beginning.
So how would America be different if we could go back to 1913 and
keep the Federal Reserve Act from ever being passed? Well, the
following are 10 things that would be different if the Federal Reserve
had never been created....
#1 If the U.S. government had been issuing debt-free
money all this time, the U.S. government could conceivably have a
national debt of zero dollars. Instead, we currently have a national
debt that is over 14 trillion dollars.
#2 If the U.S. government had been issuing debt-free
money all this time, the U.S. government would likely not be spending
one penny on interest payments. Instead, the U.S. government spent over 413 billion dollars
on interest on the national debt during fiscal 2010. This is money
that belonged to U.S. taxpayers that was transferred to the U.S.
government which in turn was transferred to wealthy international
bankers and other foreign governments. It is being projected that the
U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.
#3 If the U.S. government could issue debt-free
money, there would not even have to be a debate about raising "the debt
ceiling", because such a debate would not even be necessary.
#4 If the U.S. government could issue debt-free
money, it is conceivable that we would not even need the IRS. You doubt
this? Well, the truth is that the United States did just fine for well
over a hundred years without a national income tax. But about the same
time the Federal Reserve was created a national income tax was
instituted as well. The whole idea was that the wealth of the American
people would be transferred to the U.S. government by force and then
transferred into the hands of the ultra-wealthy in the form of interest
#5 If the Federal Reserve did not exist, we would
not be on the verge of national insolvency. The Congressional Budget
Office is projecting that U.S. government debt held by the public will
reach a staggering 716 percent of GDP by the year 2080. Remember when I used the term "debt spiral" earlier? Well, this is what a debt spiral looks like....
#6 If the Federal Reserve did not exist, the big
Wall Street banks would not have such an overwhelming advantage. Most
Americans simply have no idea that over the last several years the
Federal Reserve has been giving gigantic piles of nearly interest-free
money to the big Wall Street banks which they turned right around and
started lending to the federal government at a much higher rate of return.
I don't know about you, but if I was allowed to do that I could make a
whole bunch of money very quickly. In fact, it has come out that the
Federal Reserve made over $9 trillion
in overnight loans to major banks, large financial institutions and
other "friends" during the financial crisis of 2008 and 2009.
#7 If the Federal Reserve did not exist, it is
theoretically conceivable that we would have an economy with little to
no inflation. Of course that would greatly depend on the discipline of
our government officials (which is not very great at this point), but
the sad truth is that our current system is always going to produce
inflation. In fact, the Federal Reserve system was originally designed
to be inflationary. Just check out the inflation chart posted below.
The U.S. never had ongoing problems with inflation before the Fed was
created, but now it is just wildly out of control....
#8 If the Federal Reserve had never been created,
the U.S. dollar would not be a dying currency. Since the Federal
Reserve was created, the U.S. dollar has lost well over 95 percent of
its purchasing power. By constantly inflating the currency, it
transfers financial power away from those already holding the wealth
(the American people) to those that are able to create more currency and
more government debt. Back in 1913, the total U.S. national debt was
just under 3 billion dollars. Today, the U.S. government is spending
approximately 6.85 million dollars per minute, and the U.S. national debt is increasing by over 4 billion dollars per day.
#9 If the Federal Reserve did not exist, we would
not have an unelected, unaccountable "fourth branch of government"
running around that has gotten completely and totally out of control.
Even some members of Congress are now openly complaining about how much
power the Fed has. For example, Ron Paul told MSNBC last year that he
believes that the Federal Reserve is now more powerful than Congress.....
"The regulations should be on the Federal Reserve. We
should have transparency of the Federal Reserve. They can create
trillions of dollars to bail out their friends, and we don’t even have
any transparency of this. They’re more powerful than the Congress."
#10 If the Federal Reserve had never been created,
the American people would be much more free. We would not be enslaved
to this horrific national debt. Our politicians would not have to run
around the globe begging people to lend us money. Representatives that
we directly elect would be the ones setting national monetary policy.
Our politicians would be much less under the influence of the
international banking elite. We would not be at the mercy of the
financial bubbles that the Fed has constantly been creating.
There is a reason why so many of the most prominent politicians from
the early years of the United States were so passionately against a
central bank. The following is a February 1834 quote by President Andrew Jackson about the evils of central banking....
I too have been a close observer of the doings of the
Bank of the United States. I have had men watching you for a long time,
and am convinced that you have used the funds of the bank to speculate
in the breadstuffs of the country. When you won, you divided the
profits amongst you, and when you lost, you charged it to the Bank. You
tell me that if I take the deposits from the Bank and annul its
charter I shall ruin ten thousand families. That may be true,
gentlemen, but that is your sin! Should I let you go on, you will ruin
fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, (bringing his fist down on the table) I will rout you out.
But we didn't listen to men like Andrew Jackson.
We allowed the Federal Reserve to be created in 1913 and we have
allowed it to develop into an absolute monstrosity over the past
Now we are drowning in debt and we are on the verge of national bankruptcy.
Will the American people wake up before it is too late?
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