When most people think of the Federal Reserve System, they often perceive the institution as a national bank with accountability to the federal government. The reality of the situation couldn't be farther from the truth.
The Federal Reserve System was created in 1913 along with the induction of the Sixteenth Amendment, which was never properly ratified by enough States. Mind you, that our nation existed for 130 years without any direct taxes on people's labor, although the Constitution allows for excise taxes. When the Federal Reserve System started, the government did not own any of the banking capital, it was rather a conglomerate of the leading private mass banks working in concert with the government. These powerful banks were the same major groups which spurned and funded the two great World Wars of the Twentieth Century. Clearly, these large banks now have usurped the People's political might through overnight coups of financial decision making and bribery at the highest offices of public service.
Now, the United States' entire economic trade patterns are dictated by those whose financing set rigid national quotas and restrictive trade agreements wrapped in the guise of free trade. As America sojourns into the Twenty-First Century, more and more they pile on the People with little scrutiny. These are better known as NAFTA, GAT, and WTO agreements. They come from the IMF, the G8, and the top international financing and political players. Next, the Trans-Texas Corridor will further facilitate the new government of Security and Prosperity Partnership (founded 2005- Waco, TX - http://spp.gov). The SPP will further regulate trade between the United States, Canada, and Mexico and is the groundwork for a future North American Union. Already, in 2007, SPP was able to convince the US Congress to pass an agreement where in the case of civil unrest or insurrection, now Mexican and Candian troops may be used in the United States to quell rebellion. Already, some reports indicate joint exercises have been held to train this supranational force.
And all of this from the Federal Reserve System, who seeks to control trade like a child who plays games of conquest with his own imaginary world. Yet, this world is real and the effects always startling.
Congressman Ron Paul of Texas has long warned against the dangers of a private organization with powers superceding even those of the federal government. He has called the recently passed $700 billion (and soon to be $1.8 trillion) an "attack on the dollar system" with serious repurcussions in the future of American markets. In this creation of money out of thin air, the Federal Reserve will pump imaginary millions into top private CEO bank acocunts, but with real purchasing power. Such inflationary methods are sure to devalue the U.S. dollar.
In early 1920's Germany, the Weimar Republic tried similar methods to avoid more financial crisis. By 1923, there were made public many images of children using Deutschmarks taped together as kites. And even more frightening is the fact that not only are the People not free to make major economic decisions, but our money system has lost its only tie to real value long ago. And, fiat greenbacks are the kind no one wants.
Ron Paul, in a recent interview with CNN, also predicted a collapse of the fiat money arrangement since Bretton-Woods was enacted in 1971. He responded to the question of hyperinflation chiding that "this system that we have had since 1971 is unviable and it's coming to an end." The new $700 billion dole to fat cats must now be paid, and its cost will become insurmountable. Our nation spent less than that amount on defense last year, even though the American Empire's military stretches along 725 bases in over 130 nations on the globe. The weight of such a burden is crushing and signs of national bankruptcy in the United States are already beginning to emerge.
As food prices soar, but the blood-ridden oil from Iraq and Afghanistan rolls in cheap, the American nation is set to face hard times if fast action is not taken to restore our nation's Constitutional values. Our needed passion for civic involvement and the rule of law is paramount.
And yet again, the problem is left not with those who created its massive hurt, but the People who knew better but could not fully act. The responsiblity now lies with us. No more government bailouts, no more millions of dollars to McDonalds to advertise BigMacs in Europe, no more government waste and use of good People's money to fund war games in Czech Republic and Poland.
Ron Paul was brave enough to say, "the fact that we have to depend on government for all of our problems is an illusion." And while illusions may intice and even feel quite real, in the end the hidden reality is what can hurt you.