If you have not yet read Part 1, I encourage you to do so prior to reading this post. If you are unclear on how modern banking works, in particular how the FED works, I strongly urge you to read this post.
We ended part one with the newfound understanding that 1933 was a very bad year for Liberty. It was a disaster for the Republic. Next we will explore why 1933 was such a pivotal year. 1933 was the year that the Fed’s 20 year charter expired. This was the year they were to either be dissolved, or have their charter renewed.
We can presume that congressmen voting on renewal would first consider whether or not the Fed had done “a good job”. Their public mandate was to maintain the value of the dollar and to ensure that there were no economic fluctuations or panics. That was their entire public mission. Had they done well? No! 1933 was the 4th year of a calamity of the likes America had never known. The great depression was laying waste to the entire country. So, WHY WAS THE FED CHARTER RENEWED? The $64,000 question.
If you have read this post, then you understand that the FED is a private corporation. They pay the US Treasury to print money, paying for ink and paper costs. They pay the same for a $1 bill as they do for a $100 bill. Then they lend that money to the US government at interest. To say this is the holy grail of “money for nothing” is an understatement of vast proportions. It guarantees, without any doubt, that eventually the country will be bankrupt. But when will a country the size of America be bankrupt?? When it can no longer pay the interest on it’s debts. When might that be?
That day already occurred. It happened in 1933. After 20 years, from 1913 to 1933, having lent America the money to fight WW1 and then lending money with reckless abandon throughout the go-go years of the “Roaring 20’s” the Fed had brought the American government to it’s knees. Just as the deadline to renew it’s charter approached, it stopped lending money and started collecting on it’s huge notes to American government, industry and farmers. The government could not pay the interest on it’s debts. It was technically bankrupt.
The new President was informed of the situation shortly before taking office. FDR may have felt like he had a gun to his head. The Fed was arguably correct in saying “A deal is a deal. A debt is a debt. Pay up or accept that we will foreclose on everything the country has.” Others, this author included, would argue that they did not “lend” America anything, as they were just giving us printed paper that the Treasury had printed for them. In any case, after 4 years of the Great Depression there was no way he could pay the interest on the country’s debts. What was he to do? We can argue what he should have done (and we should in fact argue/discuss it). But after the arguing is over we must come to grips with what he in fact did.
He yielded to the Fed’s demands. Unable to pay them, he offered to steal the gold of the entire American Citizenry, and give it ALL to the Fed’s owners as partial payment of debts owed. The Faustian bargain of the de facto bankruptcy proceedings was that the Fed have it’s charter renewed, and would continue to make “money” available, but the “money” would no longer have any intrinsic value. Of course, most American people would not understand the depravity of the situation, so a facade of legitimate government would continue.
BUT how would future debts to the Fed be paid, now that the American people had no REAL MONEY with which to pay?? The Fed, like world governments, want to be paid in real money. Gold is how international banks and nations settle their debts to this day. WHAT DID FDR OFFER AS COLLATERAL FOR ALL THE DEBTS OF THE LAST 77 YEARS?
Collateral must be substantial. So FDR pledged the labor of the American people, in the form of income taxes. By 1973 the government was also pledging American lands to the Fed, which is why so very much of the country today is land which can not be developed by American Citizens. It is “protected” in the name of parks, wildlife, historical places, etc etc etc. The REAL reason is that it is being protected from being developed by anyone other than the ones to whom it has been pledged – the owners of the Fed.
The ongoing Chapter 11 bankruptcy of the American government has been a Ponzi scheme of a scale so tremendously huge it can scarcely be believed. But it is all true. However, like all Ponzi schemes it will fail when there are no longer enough new people coming to the party to support the payouts. The American Ponzi scheme was beyond huge. It was so huge that it took 75 more years, until 2008, for that balloon to pop.
The next charter renewal is scheduled for early in 2013. It is interesting timing, is it not?