Investing In Inflation

subbie writes:Oh, by the way, the Fed has nothing to do with coining money, that's the Bureau of Printing and Engraving, just in case you're confused about that as well.

kuresu writes:Congress decided that a federal reserve system would be appropriate for regulating our currency.

subbie writes:Congress created the Federal Reserve Banks when it passed the Federal Reserve Act. Congress has the power to pass all laws necessary and proper to carrying out its powers under Article I, Section 8. By simply repeating that the Constitution confers upon Congress the power to coin and regulate the value of money, but ignoring my response that Congress properly delegated that power through legislation, you are not advancing this argument or your position.

After months of hearings, debates, votes and amendments, the proposed legislation, with 30 sections, was enacted as the Federal Reserve Act. The House, on December 22, 1913, agreed to the conference report on the Federal Reserve Act by a vote of 298 yeas to 60 nays with 76 not voting. The Senate, on December 23, 1913, agreed to it by a vote of 43 yeas to 25 nays with 27 not voting. The record shows that there were no Democrats voting "nay" in the Senate and only two in the House. The record also shows that almost all of those not voting on the bill had previously declared their intentions and were paired with members of opposite intentions (See v. 51 Cong. Record, pages 1464, 1487-88).

This new law completely removed from the Congress the right to create money or to have any control over its creation, and gave this function over to the Federal Reserve Corporation. The Fed printed “Federal Reserve Notes”, which are still accepted today as money among the citizens of the country.But we have to understand that these Federal Reserve Notes, used as money in the country, cannot be considered as being constitutional money. Why, you ask? Because the Congress went against the Constitution of the United States when it passed this Federal Reserve Act, for it specifically states that Congress, and only Congress shall have the power to coin and regulate the money of the country.Some might ask: “What does it matter if Congress or private Bankers create the money? It is accepted by the people just the same as a medium of exchange with which to perform business transactions”.Yes, the Federal Reserve Notes are accepted as a medium of exchange by the people of the United States. But this is a debt-money, being interest is charged on every dollar that is created, but the interest is not created!, Let me give an example to illustrate this point.To obtain the moneyLet us say that the Federal Government needs $1,000,000,000 ($1 billion) more, after it collects the taxes, to continue financing its projects. Since it does not have the money, and Congress has given away its authority to create it, the Government must go to the Federal Reserve, which is now in charge of creating the money for the country. But the Federal Reserve does not just give its money away! The Bankers are willing to deliver $1 billion in money or credit to the Federal Government only in exchange for the Government's agreement to pay it back ” with interest! The Congress then authorizes the Treasury Department to print $1 billion in U.S. bonds, which are then delivered to the Federal Reserve Bankers.The Federal Reserve then pays the cost of printing the $1 billion (about $1,000), and makes the exchange. The Government then used the money to pay its obligations.Now, what are the results of this transaction! The $1 billion in Government bills is paid, but the Government has now indebted the people to the Bankers for $1 billion, on which the people must pay interest! And, of course, the interest is not created!And, to top it all, on this $1 billion that the Federal Reserve received in bonds from this transaction, it is legally allowed to create another $15 billion in new credit to lend to states, municipalities, businesses, and individuals. Added to the original $1 billion, they could have $16 billion of created credit out in loans paying them interest, with their only cost being the $1,000 they spent for printing the original $1 billion lent to the Government. Is it diabolical? You bet it is!“Creating” moneyWe should probably clarify the term “create”. When we use this term, we refer to the process used to bring money into existence. The Bankers create money out of nothing, simply by writing numbers in their ledger books, and then giving loans to the American people with this money, allowing them to write checks on the numbers written in their accounts, and then requiring payment with interest. Money is nothing but numbers, be it numbers in a ledger book, on checks, or on dollar bills. Using this process, most banks are legally allowed to lend out up to 50 times of what they have on deposit, creating the money out of nothing and then charging interest on it. You have to admit that it is quite a racket!.And the Federal Reserve prints the paper money we use in circulation, the Federal Reserve Notes, by having numbers printed on pieces of paper of little value, since a few cents will print a $1 bill or a $10,000 bill (at the same cost). Money is very cheap to make, and whoever has the legal right to create the money in a nation can make a tremendous profit.

More tin foil hat ramblings, distortions and deceptions.

This new law completely removed from the Congress the right to create money or to have any control over its creation,

Federal Reserve Notes, used as money in the country, cannot be considered as being constitutional money. Why, you ask? Because the Congress went against the Constitution of the United States when it passed this Federal Reserve Act,

Money is very cheap to make, and whoever has the legal right to create the money in a nation can make a tremendous profit.

And, to top it all, on this $1 billion that the Federal Reserve received in bonds from this transaction, it is legally allowed to create another $15 billion in new credit to lend to states, municipalities, businesses, and individuals.