NEWS FROM THE REBELLION
columnist: Republicae

Topic: Economics
The Death Nel Rings For The Federal Reserve

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Though not apparent at the moment, the ringing of the Death Nel is getting louder each day for the Federal Reserve and its Fiat Monetary Debacle. In fact, there are few that have even heard it’s ringing, but soon it will toll louder and louder.

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by Republicae
(Libertarian)
Sunday, April 20, 2008

Though not apparent at the moment, the ringing of the Death Nel is getting louder each day for the Federal Reserve and its Fiat Monetary Debacle. In fact, there are few that have even heard it's ringing, but soon it will toll louder and louder. As more and more of the People of this country awaken to the devious functions of the Federal Reserve and its partner in crime, the government and its pandering politicians, the time is close at hand when they will no longer allow such reckless and illegal shenanigans. Along with the welcomed death of this hideous quasi-governmental monstrosity called the Federal Reserve, will come the end of our government, as we know it. When enough People realize what has actually taken place and what the government, along with their banking partners have done to this country then they really will be up in arms.

There is one incredibly fantastic trait inherent within all Fiat Monetary Systems and that is that they are mathematically impossible to sustain indefinitely. The fact is that they all have an inherent terminal point, a maximum life span if you will. Our Fiat Monetary System is particularly interesting because it is what is considered a Total Fiat System with no inherent value backing the currency. Most partial Fiat Systems usually have a life span between 50 to 70 years; Total Fiat Systems on the other hand have been shown to have a practical life span of between 20 and 40 years depending on the abuses heaped upon it by overzealous and reckless politicians. In 1971 President Richard Nixon cut the final ties between the Federal Reserve Notes and gold, on that fateful day, 36 years ago the debasement of the purchasing power of those Federal Reserve Notes began in earnest and has diminished at an unbelievable rate. 

Now along with this little scam comes another little trick that supports the Fiat System and that is taxation. A former governor of the Federal Reserve, Beardsley Ruml, stated that under a Fiat Monetary System there is absolutely no need for taxation as a means of raising operating revenues since it need only depend upon the expansion of the Fiat money supply to achieve any fiscal functions of operation. In fact, Mr. Ruml went further by saying that there were only three reasons that a government with full access to a Fiat Monetary System would implement income, gift and estate taxation, these reasons are as follows:

1. To maintain social control over the population.

2. To enforce the use of Fiat Currency by the People.

3. To redistribute wealth.

I mean the government's debt, or should I say our debt, is now estimated at nearly $10 Trillion Dollars with unfunded future obligations at over $60 Trillion Dollars on top of that. In the last year this government spent around $500 Billion of your tax dollars just on the periodic interest payments on the debt, the remainder of our taxes amounted to little more than a pittance in the grand scheme of things. The government outspends tax revenues at an unbelievable rate, our taxes, in essence, do nothing in terms of actual government operations. Taxation is however, very necessary to maintain the Fiat Monetary System.

Today, a person making an annual income of $35,000. 00 has the effective purchasing power, in 1970 "dollars" of merely $6,359.83 per year. So, a person making that $16.83 "dollars" per hour really has an effective purchase power of only $3.06 in 1970 "dollars" per hour. Now, can anyone see why the government must mandate minimum wages? The fact is that a person making the average minimum wage of $5.85 per hour has the effective hourly wage in 1970 "dollars" of only $1.06 per hour; in other words that person working forty hours a week has a wage of only $42.40 per week in 1970 purchasing power "dollars". Hardly a subsistence wage, wouldn't you agree?

Now, for more horrifying news, consider what has happened to the purchasing power of our "dollar" since the inception and imposition of the Federal Reserve on this country in 1913. That same $35,000.00 "dollars" per year has the effective purchasing power of only $1,622.74 in 1913 "dollars", or $0.78 per hour. So today, it takes approximately $21,568.48 "dollars" to purchase what $1,000.00 "dollars" purchased in 1913. In other words, it takes One Fiat Federal Reserve Note, $1.00 to purchase what $0.05 cents bought in 1913. These numbers however, are based upon the government's own CPI calculations, which are fraudulently low to say the least, meaning the actual numbers are even worse, but this little example gives you some idea about what has happened to the value of the currency.

What has happened to all that immense wealth? It has effectively been siphoned away from the People, making their labor basically free, making them basically serfs who slave by the sweat of their brow only to receive a pittance in return. That wealth has been diverted through the use of this Fiat Monetary Scam imposed against our Will and the best interest of this country by those who should be considered nothing less than criminals and traitors. Even today, they continue to rob the People of the fruit of their labors; these Bankers and their willing partners in government that allow these crimes and, at times openly support such underhanded methods of swindle are still deserving of nothing less than a traitors death. They deserve to dance the Tiber Jig. They continue to take the food from your children's mouths and consume the bulk of prosperity from the hard-working men and women of this country.

Most Fiat Systems throughout history have been partial in their character and nature, combining a portion of backing to the currency, but the one imposed upon this country is different and that distinction will ultimately cause it to implode in a way that few of us presently can imagine.

It will be both the worst of times and the best of times, for it will awaken this People, slothful in their pleasures to once again hold things of meaningful value in high esteem, but it will prove to be a time of untold suffering, chaos and cruelty. A time that will definitely try us in ways that can yet be conceived.

But that aside, let us get back to the topic at hand: Fiat Currency. Due to the particular nature of the structure of our Fiat System every single Federal Reserve Note must be borrowed into existence, effectively making each of those Notes a legal notification of a debt obligation carrying an additional interest obligation. So, our money is borrowed into circulation as a interest bearing debt obligation; in order to continue the process of economic growth money must continually be borrowed and re-borrowed into circulation otherwise there is a contraction in that circulation and thus a contraction in the economy. In order to maintain this extremely flawed System all payments made toward the principle debt and the periodic interest obligations must be constantly re-assumed in the form of a new principle amount that is not only equal to the old principle but with the addition of more interest obligations on top of it the entire underlying balance of the principle debt and periodic interest only multiplies. We have reached the point where the debt is now completely irreversible and is beginning to consume the economy at a much more rapid rate. This balloon expands exponentially to the point that it siphons off all viability within the economy which collapses in under the massive weight of insoluble debt.

So, when at one time the economy could tolerate those interest rate hikes, we have seen signals that the economy can no longer sustain itself with what was once considered only minor rate increases. This is a signal that the System can no longer service the underlying debt upon which it is created and that an increasing amount of currency is needed to service that debt taking more and more currency out of circulation thus contracting liquidity in the market. The fist sign of the System reaching the terminal point in its life span will be something similar to the Great Depression, but with much farther reaching effects. Afterwards, the fun really begins as the System when it reaches the point of systemic collapse. Think Dark Ages.

There are several signs that the Fiat Monetary System is approaching the terminal point of its lifespan. The economy, which at one time could tolerate interest rate increases, even high rate increases, becomes more and more intolerant of such increases. The stress cracks have been showing for years and this latest economic quake is only but the beginning. The problem is far greater, far deeper than anyone is revealing, especially those in government.

Now this is, at first, hard to grasp since we rarely deal with such matters in our everyday lives, but it is essential knowledge for those who wish to prepare for the events that will press us all in the future, a future much closer than we realize. We must realize that everything that is built and depends upon this Fiat Monetary System will suffer the same fate as the System itself. For a moment imagine what depends on this Fiat Monetary System: the government with all its functions and all government programs like Social Security, Medicare, government checks, our paychecks, savings, insurance, stocks and bonds, 401ks and even the banks themselves are all totally and absolutely dependent upon this Fiat Monetary System.

The Federal Reserve, along with just about every other central bank around the world, can do nothing to stop this collapse; sure they can continue to slap band-aids on the growing problem, stitch patches on their decaying economic blanket, but they cannot stop a terminal process that is inherent in the System they created. As I said, it is a mathematical impossibility for such a System to continue indefinitely.

The day may come when the People of this country will once again Demand not only their government return to sound and solid Constitutional Principles, but that the money that circulates in this country once more carries with it actual Property Rights.

So, you say you want a Revolution?

 In Liberty,

Republicae-Seditionist 

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2008 Republicae, all rights reserved.
Published: Sunday, April 20, 2008
Last modified: Monday, April 21, 2008

The views expressed in this article are those of Republicae only and do not represent the views of Nolan Chart, LLC or its affiliates. Republicae is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.

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