A simple majority vote in both houses of Congress is all that is required to repeal the Federal Reserve Act. Section 31 of the Act states that "The right to amend, alter, or repeal this Act is hereby expressly reserved". A repeal of this Act by Congress would wrest from the Federal Reserve Bank, the nations privately owned central bank, the power it presently holds to regulate the nations money supply. Congress would assume this responsibility, granted to it by the Constitution, but surrendered by it to the Fed in 1913. The nation's monetary system would automatically be transferred to its rightful owner, the citizens of the United States.
The Constitution of the United States, article 1, section 8, says that "The Congress shall have the power to coin Money, regulate the Value thereof, and of foreign coin, and fix the Standard of Weights and Measures". Our founding fathers intent was that the American citizen, acting through his elected representative in Congress, would reserve the power to regulate the value of his own money. The founders believed that such congressional control of the money supply would preserve the value of the dollar as both a stable means of exchange and as a consistent storage of capital. The constitutional system views money as a simple instrument of exchange. The system we presently have, the Federal Reserve System, views money as a debt instrument and a mortgage against our ability to create capital in the future.
The Constitution authorizes Congress to create and store gold and silver coin and then to circulate gold and silver certificates, redeemable in coin, into the economy. These redeemable certificates would serve as paper money. Congress, under the Constitutional system, would regulate the value of money by deciding how many certificates to circulate. In order to insure the maintenance of honest money, the quantity of certificates Congress would circulate should be pegged to an estimate of the level of exchange of goods and services at a given time, which is known as the gross national product.
The interests of the wage earner, investor, trader, and saver, is served by an objective and disinterested policy of determining the quantity of money circulating in the economy. If more money is circulated than is needed in order to meet the gross national product, inflation is the result. Inflation erodes the value of the dollar, which leads to a driving up of prices in order to meet production costs. The value of investments and savings are, subsequently, watered down. This is why inflation has been referred to as a back door tax.
If not enough money is circulated into the economy to meet the gross national product, the result is deflation. Deflation results in an economic contraction, which leads to mortgage and loans foreclosures and widespread bankruptcy and unemployment. There is simply not enough money in the economy to pay the bills.
The stock market crash of 1929 was the result of a dramatic manipulation of the nations money supply by the Federal Reserve. First, a runaway inflation was created when the Federal Reserve issued a quantity of money vastly greater than the GNP. This was followed by an equally dramatic, and sudden, contraction of the money supply resulting in deflation. Businesses, investors, mortgage holders, and individuals who had overextended themselves with inflated loans, and purchased goods and services with inflated dollars at inflated prices, suddenly discovered that there was not enough money to pay these debts. Properties and businesses were, subsequently, foreclosed upon by banks, particularly those banks affiliated with the Federal Reserve.
The Federal Reserve, which is not part of the government, but, rather, a private cartel controlled by member banks and investors, is responsible for the ongoing and excessive boom and bust cycles. These are the result of the Fed's manipulation of the money supply. The Fed bases its actions, as any private corporation does, upon what it perceives to be in the best interests of its shareholders. This is why it shouldn,' be entrusted with the management of the nations money. We the citizens have a right, articulated on our Constitution, to directly manage the value of our own money and in our own interest.
Congress has the power to dissolve the Federal Reserve and should exercise this prerogative before we enter into yet another period of inflation or stagnation. The Federal government would be obligated to buy back its stock in the Federal Reserve, which would cost about 1 billion dollars. Section 7 of the Federal Reserve Act says that if the Fed is dissolved, the surplus becomes the property of the United States. The Fed is estimated to be worth, according to its own March, 1982 issue of the "Federal Reserve Bulletin, $168.5 billion, with an additional estimate of $92 billion in gold, which comes to a grand total of $250 billion dollars". This money would revert directly to the U.S.Treasury.
Congress, acting on the advise of a proposed National Monetary Fund, would then authorize the U.S.Treasury to issue redeemable gold and silver certificates into the economy commensurate with the gross national product. The Treasury could then loan the certificates, at a low interest rate of no more than 3%, to the nations banks, which would than mark up the cost of the money to qualified borrowers. The interest paid by the banks to the government could be used to pay for services presently paid for by direct taxation. This could eventually lead to a scrapping of the income tax altogether.
The American Revolution was fought to preserve the concept of private ownership of property. At the Boston Tea Party, the patriots declared, "Taxation without representation is tyranny" as they tossed the British tea into the harbor. Our representatives in Congress surrendered that most basic expression of property, money, to a private cartel, which represents the same principles today as the British tyrant did to our brave patriots in1775.
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