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How To End the Federal Reserve System by Gary North

Things are not always as complicated as they seem. With respect to the Federal Reserve System, it is a deliberate mystery. It was deliberately designed in 1910 to deceive the public, who were opposed the idea of a central bank. The conspirators who met on Jekyll Island in November 1910 knew this. They did good work from their point of view. They concealed the beast.

The general public today knows little about the FED. Prior to Ron Paul's Presidential run in 2007-8, far fewer people understood it.

I have been asked: "How could we get rid of the Federal Reserve? What will replace it?" The answer: either the free market or Congress.


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Goal is to capture remaining regions NOT under cartel control


The goal, from the Bank of England (1694), through the central banks of the European monarchs, through the early National Banks of America, and finally onto the Federal Reserve, has been to grow ever-larger, "defacto" legal jurisdictions for monopoly power over "currency" issuance.

To hold monopoly power requires physical force. If you want to sustain your "currency" monopoly, you need police (domestically), and powerful armies (globally). Britain had this power in the 18th and 19th centuries, America in the 20th.

The monopoly status of the US-based private Federal Reserve, established by the power of the American government, uses the US military, to expand globally it's jurisdictional defacto "legal" monopoly, to issue the world's "reserve-currency". Bretton Woods (1944), was one of the latter agreements to do so, to be enforced by the US military.

This made the $FRN the "reserve currency" of the globe. Enforced by the US military, many (most) commodities, including oil, must be "priced" in $USD FIRST, before trading in local currencies.

The $USD debt-note of the Federal Reserve is currently amidst collapse in value, and the global enforcement of it's "legal tender" status (solidly enforced within the US, less rigidly enforced in other countries - although most "helpful" foreign US/UN/Nato military actions over the last 75 years notwithstanding...) is becoming difficult to support.

The collapsing debt-bubble of 2007-2011 has spurred the Federal Reserve to "float" their banks and profits first, through QE's (at the expense of the US taxpayer, and global savers).

Once the large-bank balance sheets have been covered, the QE's may stop, producing a crushing depression. With banks thus flush with "cash", a depression would have the benefit of taking real assets and real world "property" into ownership thorugh default, particularly in the juridiction of the FED (USA and West), as "collateral" on the (fictitious) debt issued. Non-jurisdictional Foreign creditors (China, Japan, Saudis, etc) would readily accept real assets as payment, so this has some strong possibility.

Otherwise, the QE's continue on, to pay off creditor debt with devalued dollars, accompanied by huge inflation. While this "pays off" non-jurisdictional creditors, China, Saudi Arabia, Japan, etc. However, these creditors aren't stupid - they might only accept real assets, and inflation doesn't help to secure jurisdictional (US & Western) assets in default as "collateral", since debtors are helped to keep their collateral from falling into the hands of the banks with inflation as well. However, foreign creditors may only accept "devalued" dollars for so long.

Not sure which path ushers in a larger IMF-based world "currency" faster and easier, but whichever does will define the likely path.

Freedom's answer is sound non-debt (pre-paid) money, of which silver and gold are 2 forms, competing at the State level with $FRN debt-notes, to win out. Digital "debt monies", barter and other non-conventional market means to get off the "$FRN debt-heroin" may also play a role.

*Currently brainstorming for

*Currently brainstorming for entrepreneurial ideas to bypass the fed*

Know your stuff, learn real history and economics @LibertyClassroom.com

There are a couple of ways I have thought of

But this blog explains the general idea...many other examples of peer to peer lending out there too. More than one way to skin a cat. Now if you take this concept and create your own E-gold/silver and your own stock market you could bypass warstreet.




If not inflation then what?

Excellent article. What I can't understand is if the FED does not resort to inflation than what is the alternative?

First they ignore you
Then they ridicule you
Then they fight you
Then you win
-Mahatma Gandhi

Government bond default, tax increases, or spending cuts.

Only three options. They've maxed out their credit cards. Just like any other irresponsible borrower, they can declare bankruptcy (bond default); they can try to steal money to pay their bills (tax increases); or they can try to live within their actual means (massive spending cuts.)

Actually, they do have a fourth option: direct counterfeiting. They can get rid of the Fed (hooray!) and take over the printing presses themselves (oh sh*t.)

Recommended reading: The Most Dangerous Superstition by Larken Rose