The National Debt is a term that we’ve heard our entire lives. Even so, just how much do you know what that debt is? Is it money the government owes the citizens? Is it money the citizens owe the government? Could it be money we owe to other countries? Is it money the government owes to a bank?

There is only one correct answer in that list. It is money our government owes to the privately-owned central bank called the Federal Reserve. The name itself is a work of deception, one would assume having the name Federal would make it a government agency, and reserve makes most people think of holdings we have in a reserve. Both of those are intentional acts of deception. The Federal Reserve is no more federal than Federal Express known as FedEx. The name was picked for the sole purpose to deceive the citizens of this country and the multiple countries they operate in.

So, the national debt is money our government has borrowed from the Federal Reserve, which calls up the US Mint, a real federal agency, which then sends the printed bills to the Fed for distribution. Nowadays, this process is often just digits on the screen. The Fed has stated that only 1/3rd of our currency is actually printed, the rest are just digits on a screen.

Now you might be wondering why the government doesn’t print its own money instead of borrowing it from a privately-owned bank. It is a very good question and it's one that we should be asking every elected politician.

The government for the most part of its existence did, in fact, print its own currency. In fact, the bankers tried twice previously to establish a central bank in the United States. Eight presidents have opposed central banks.

Our founding fathers knew very well the dangers of banks and giving control of the nation’s wealth to a few individuals. They tried to ensure no central bank could control the USA by ensuring that only gold and silver can be used as legal tender in the United States. Article IIX of the US Constitution.

The government went one step further in 1793 with the creation of the coinage act. It made it against federal law for anyone other than the US Mint to produce any legal tender inside the United States and the coinage act ensured each coin would be identical to the other coins of that denomination. There were very strict qualifications each coin must meet or it would be melted and recast. Anyone found violating this law could face public hanging. The law is still in effect to this day. Technically speaking President Lincoln violated this law with the creation of greenbacks (civil-war currency) that was only backed by the credibility of the United States, not gold or silver. This was a direct violation of the US Constitution and the Coinage Act of 1793 and should have faced trial.

One a constitutional right and the other a law, both worked well to ensure the wealth of the nation was held by the people and not by a handful of individuals. It worked well until the bankers met at Jekyll Island in 1910 and then later President Woodrow Wilson signed the Federal Reserve Act into law after being passed on Christmas break. Shortly after Wilson signed the bill into law he realized that he had doomed the nation, stripped the citizens of their holdings, and put the power and the wealth of our nation into the hands of very few people.

Wilson is credited with the following quote: “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world - no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” This man realized all too late his part in the destruction of his country and the freedoms of the citizens.

On January 30th, 1934, 21 years after the passing of the Federal Reserve Act the United States government made it illegal to possess any gold. Except for a very small amount held by coin collectors and dental practitioners. The rest must be traded for Federal Reserve papers under threat of fine and imprisonment.

This was the same time when the banks removed the Gold Standard. This meant the paper money held by the citizens, was no longer backed by gold. Which meant you couldn’t trade your paper into gold. You were at this point welcome to purchase gold with your new paper money but at an increased cost that has only continued to grow. This removed the gold from the citizens around the country, meaning they handed the wealth to the Fed who now owned all of our nation’s gold.

While we have paper, worthless paper. If the United States were to fall or the dollar lost all value, you couldn’t use that paper for anything but toilet paper. No other country would accept it and you would be left with nothing. While gold is accepted everywhere, just like it always has been. People always seem to like shiny things.

Without a debt-based fiat currency, there would be very little inflation if any at all. Between the periods of 1800 to 1933 inflation rarely moved. Now let’s compare that to after the Gold Standard was removed and the dollar was no longer backed by anything of value. A value of $1 in 1800 is equivalent in purchasing power to about $21.67 today. All of which started after 1933. The year 1933 was also chosen for a specific reason but that is another rabbit hole entirely.

Each time more money is printed, inflation goes up. The larger the amount printed the larger the inflation we see in the following months to years. Depending on how long that money trickles down.

The inflation fails to hit as the money is printed, so those spending the money first get a better value on the goods or services purchased, compared to when it reaches regular citizens months down the road. Giving the original spender huge leverage on their ability to purchase more, at the cost to regular citizens in the higher costs of goods and less value of our savings.

You might be asking yourself, if our dollar isn’t backed up by any resource then why does it have any value?

There are two answers to that question. The first is mostly illusion, it has value because we believe it has value. We are paid for our labor using this currency and we use it for purchasing goods. The other answer is OPEC. Even though America is not part of OPEC, all OPEC countries must buy and sell oil in USD. Meaning any country that wants to purchase or export oil must do so in American dollars. This creates a demand for the dollar which gives it value. If OPEC were to ever scrap the USD as the global currency, our dollar would be worthless in about every country except America. OPEC is also another rabbit hole I won't go into in this article.

That also means we would not be able to purchase any goods until we obtained another currency that other countries would accept. The citizens left in America wouldn't do any trading or selling with the now worthless currency.

That transition time could be a disaster waiting to happen, or maybe it will finally restore what our founding fathers created instead of our current system which is against the law of the land.

The only way to restore the wealth of the nation to the rightful owners, the American citizens, is to pressure our politicians into auditing and then removing the Fed. Congress allowed this mess to happen and the only congress can stop this practice.

I hope you enjoyed this simple article, make sure to visit again for my upcoming articles.

Thanks and God Bless,
Dustin

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