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Need Help Converting votes! My number 1 question about Dr. Paul...
Submitted by 86theFED on Fri, 01/04/2008 - 19:42
"Why does he say the Federal Reserve Counterfeits our currency" . This is my number one critical comeback from people in my precinct can you help with a viable positive answer? » |
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http://video.google.com/videoplay?docid=-9050474362583451279&q=M
watch this, you'll learn everything you need to know!
http://video.google.com/videoplay?docid=-9050474362583451279...
Mathew 5:9 Blessed are the peacemakers: for they shall be called the children of God.
Definition of a Dollar
A dollar is specifically a particular weight and fineness of silver.
371.25 grains pure to be exact or about .77 troy ounces.
This has been the rough approximation of coins referred to or similar to dollars for almost 400 years.
That piece of paper in your pocket is a bank note which says the US govt owes the Federal Reserve (a private bank) one of those dollars.
It has to pay that dollar with interest.
By making Federal Reserve Notes legal tender, they are in effect 'counterfeit' dollars.
Do you have a source for
Do you have a source for that? Thanks
object example - the Canadian Dollar (looney)
this is an easy one for me as it's also my #1 reason for supporting Dr Paul. Most people are quickly confused when you try to explain the subjective valuation of the dollar and the role of the private federal reserve system. I explain with a simple object lesson.
Get some Canadian currency. I keep a Canadian $5 in my pocket. For most people, it's common knowledge that the Canadian dollar should be less than the American dollar because "their economy isn't as strong". I ask them how much they think it is worth. When I tell them the American dollar is now worth less than the Looney most people are like "woah!".
Then I ask them which one the Arabians would rather take when selling their oil. Obvious answer is the one that is worth more. Then I ask them how much they paid for their last tank of gas....
Hits home in a way that everyone can relate to!
If they are interested I tell them to go on youtube and find the clip of Dr Paul taking uncle Ben to the whipping post and how uncle Ben said "devaluation at 10% only hurts people that buy imports". I ask them how many presidential candidates are even talking about this issue or are capable of knocking the chairman of the federal reserve about like that. Most of these clowns wouldn't even understand what uncle Ben is talking about!
How money is created by the Fed
Currency is non-interest-bearing debt of the national government. In the United States, it comes into circulation through the operations of the Federal Reserve Bank, which has the power to "create money." It does so through the simple process of buying interest-bearing debt that had previously been issued by the Treasury Department. That is, Treasury issues a bond in the amount of $1000 in order to finance its budget deficit. (Note that "money" cannot exist if there is no national debt.) The $1000 bond pays an interest to its holder at maturity. The Fed can "buy" the $1000 bond with a check for $1000 written in a checkbook that has simply been given it by Congress. When the Fed creates this "ink money," it has "monetized the debt," i.e. converted interest-bearing-debt to cash. The process works because the citizenry needs cash as a medium of exchange, and is thus willing to hold government debt for this purpose without being compensated by the payment of interest.
SSU Spring Lesson #5: Basics of Money Creation
http://www.wanniski.com/showarticle.asp?articleid=4897
Okay....
1. I trade my labor for dollars.
2. Value of the dollar is based on total # of dollars in existence.
3. More dollars are created. My dollars are less valuable.
4. The dollars that were created gain their value from the loss of value of the ones I traded for my labor.
The only conclusion here is that something of value has been stolen from me albiet in a very circuitous way.
5. This is wrong.
6. These new dollars are part of my labor and/or property.
7. De facto slavery and theft has been purpetrated upon me and anyone else who earned dollars legally.
This is the folly of the federal reserve and their money printing.
When I do it, they call it counterfitting.
When the Gov't does it it's called "growing the money supply"
This is why currencies must be backed by something which is stable in supply.
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A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.
~Mahatma Gandhi
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A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.
~Mahatma Gandhi
The flaw in your argument on gold
The flaw in your argument is that under you, the economy expands, but the money supply does not. So each dollar becomes worth more and more, which is deflation.
As I outlined down the page somewhere, if the Fed did not print the money or supply money to the banks in the form of bonds, the banks would be making their own money, in fact they did this in the early days of the USA.
There is no harm in the
There is no harm in the money supply not expanding unless fractional reserve banking is at work. If Austrian economics is at work, there are no periods of rapid growth based on debt- growth is modest, but stable, with no boom/bust cycle. If the economy grows and the money supply does not, it only means that everybody's money is worth more!
5% of people make things happen
10% of people watch things happen
85% say "What happened?"
That's deflation
That's deflation, dude.
Your non-debt idea may be attractive to certain people, but you would have to clamp down on banks lending money, you would have to clamp down on people using clamshells or whatever to stand in for money.
I really think this is a kind of Republicanism that is based on moralism against debt rather than a way for an economy to work. The Republicans of the 30s stuck to this idea and that's why Roosevelt had four terms even though he didn't end the Depression.
Here is a great explanation for how the federal reserve works
Fiat money for dummies
http://www.gold-eagle.com/editorials_99/hannigan092099.html
Understand The Fed
The Federal Reserve isn't "Federal", it's a cartel of private banks. Nor is there anything in "reserve". Our constitution stipulates that congress has the power to coin money. The Federal Reserve Act passed in 1913 illegally bequeaths the power to coin money to The Federal Reserve. I say "illegally" because contradicting such an important part of the constitution rightfully should require an amendment. Since there is no amendment, The Federal Reserve Act is in direct violation of the monetary system described in our constitution.
For more reading, look up the term "fiat money".
If you really want ALL the hidden details (Red Pill video)
The MoneyMasters series is 3 hours long and explains almost all of the censored money related issues of the US. It is probably the equivalent of a full college history class.
http://video.google.com/videoplay?docid=-515319560256183936
If you can watch the full video series, I garauntee that you will know more about the following topics than 99.99% of Americans;
money types, war causes, hidden money politics, control of the US, debt, slavery, inflation, goldsmiths, deflation, depressions, market crashes, gold, coersion, federal reserve, revolutionary war cause, taxes, colonial script, greenbacks, money changers, secret banker societies, Fort Knox, media control, and the IRS
The video is called MoneyMasters. I call it the RED PILL video (think Matrix movie)
ORRRR, just watch this short vid if you just need a quick answer
http://www.pcplanets.com/videoyoutube--The-Truth-Fiat-Empire...
The money printed by the
The money printed by the Federal Government used to say right on it that it was redeemable in gold or silver. Nixon officially took us off the gold standard in the 70's, and that's what triggered Ron Paul to run for office. Now the money is based on nothing but faith. It has no intrinsic value, therefore laws have to be passed FORCING citizens to accept it for payment of debts, both private and public.
To understand why it is counterfeiting, think about why counterfeiting is wrong. Lets say I print up about ten thousand dollars and spend it over a few months for things I need. Let's assume I do such a good job, that nobody EVER realizes that the money is counterfeit- it stays in circulation until it falls apart and is eventually replaced by "official" money printed by the Federal Reserve. Was anybody harmed by my little stunt? Yes, it was unfair, but who did it really hurt? The answer is every single person that uses money is hurt just a little bit. By my injecting 10000 dollars into the system, everybody else's money is worth just a little less. Well, guess what, the same thing happens whenever the FED injects billions of dollars into the system. Everybody's money buys a little less, and a little less. When the FED was created in 1913, you could have bought with 4 cents what it now takes you a dollar to buy. That is a direct result of creation of money, counterfeiting, if you will. Just like I benefited greatly at a very small cost to everybody else by creating 10,000 dollars, so do the bankers and government contractors benefit when the FED prints money, and the cost is passed on to everybody else n the form of inflation.
Hope that helps. If not, try playing monopoly some time with a big stack of blank papers cut up to be the size of money where each person can write on the papers and create their own money. See how much fun that is!
5% of people make things happen
10% of people watch things happen
85% say "What happened?"
Then, tell them to look at the Nat'l debt
in "inflation adjusted" year 2000 dollars. You'd be stunned at it's growth, almost right from the point when we went off the gold standard.
Try this.
Point them to Dr. Paul's own writings on inflation. or go to FAME.org. or look for a video called the Money Masters (?)
If you study the issue yourself, you will be able to answer their question.
The Federal Reserve Bank is allowed by law to just make up money out of thin air, that is why they are (legalized) counterfeiters. When people don't believe you, say you understand why they are having a hard time believing it, because it is something they were NEVER taught in school, and you weren't either, but that's because the bankers want to be sure you don't understand basic economics how they are stealing your purchasing power!
Look up and read what Ron Paul has said about the "inflation tax". That should help.
Where to find out about money
I can't tell you what he means. He may mean that printing money is illegal. But if the Fed did not print the money, banks would have to print money. I think RP might actually be fatally wrong on parts of this, while his diagnosis is exactly right.
RP has the right idea that mismanagement of our currency causes inflation and deflation, and human error at the Fed is the problem. I would just relate it to high gas and oil prices and say the Fed is doing that. When the US dollar was tied to a certain amount of gold, the Fed was not allowed to manipulate and monkey with our currency.
You might as well spend some time figuring it out when it comes time for you to run for president! If you want to know how money works, you ought to read these simple Jude Wanniski articles about it, they are not highly technical, but the issue is not simple once you dig into it.
http://www.wanniski.com/ssu.asp
The Fed is not really the Fed
The Fed (as in Federal Reserve) is a private bank. The Fed as in the Federal Government is supposed to be printing the money and issuing it.
As the post below says 'Federal Reserve Note' is not the same as 'Treasury Note'
Banks should not be printing money as the poster above points out. But the Fed is a bank.
In Liberty's Cause
Banks would have to print money
Nobody could use gold as convenience money or to fulfill their transactions over a distance. You would have to carry around my check if I bought something from you. Then you would have to take that check to the store and hope they would accept it. That's basically Bank of America printing money.
Take a $1 bill out of your wallet.
Read it. You'll notice it says "Federal Reserve Note" not "United States Treasury Note." See http://www.the-privateer.com/paper.html for how paper money has changed over the years.
The US Treasury borrows money, by selling bonds, to pay the Federal Reserve bank, a consortium of privately held banks, some of which are foreign in origin, to print dollar bills--Federal Reserve Notes. Now I wonder who owns the treasury bonds? Might want to look it up.
These FRNs are placed into circulation, in addition to other money created by the Fed like M3 and the discount Fed window, etc, that is made out of thin air. To discover how much your currency has been devalued, go to the Federal Reserve Bank of Minneapolis and have some fun:
http://minneapolisfed.org/research/data/us/calc/
You'll notice the inflation counter begins in the year 1913. That's the year they "passed" the Federal Reserve Act and President Wilson signed it into law. You may also notice that's the year they supposedly "ratified" the 16th Amendment, instituting so called Income Tax. Hmmm, do you think there might be a connection?
As long as every country has to buy their oil in US dollars, we can print and export our inflation around the world. But what happens when those FRNs lose so much value, they are not even accepted in essentially third-world countries, like India and China? What happens if the oil exporting countries decide to sell the oil in a competing currency because the dollar has become worthless? Ask Saddam Hussein. Oh, that's right, you can't. He's dead.
Remember when I asked you who owned the Treasury bonds? Did you google it? Here's an article from the USAToday that says over 50% is foreign owned:http://blogs.usatoday.com/oped/2006/12/post_1.html
What's going to happen to all those bonds if the dollar tanks? Think maybe they might get dumped because they've become worthless? What's going to happen to the US if all those dollars come flooding back? Google Weimar Republic and find out! In addition to reading about our future, you'll also find out why McCain was wrong about how WWII got started.
It gets a little
It gets a little complicated. The CONgress has the power to issue money, frankly I don't care what they use, but that is a different story.
The money issued MUST match the GDP. If it doesn't we have problems. The problem is that CONgress is borrowing money from the FED (No reason they should) and gets charged interest when THEY have the power to print money themselves.
Its like you being allowed to print the money you need but then instead you go to the bank and borrow money and they charge you interest. Makes no sense AT ALL!!!
I could write a book about this.
The best argument for Paul
The best argument for Paul would be that the gold standard did a better job of matching the gnp than human guessing about what the gnp is today.
When you leave it up to a human, you also let in political pressure to pump up the economy this week at the expense of next week.
CONGRESS
ONLY HAS POWER TO COIN MONEY. You can't coin paper, only metal. Congress is NOT allowed to print bills of credit (paper money). This was designed this way so that they could NEVER inflate the supply of money (i.e., also called debasing the currency) to steal value from the people.
A book has already been written on this. Many.
The Creature from Jekyll Island, by G. Edward Griffin, is a MUST READ. He has endorsed Ron Paul for President.
Another fantastic book on money is "Pieces of Eight" (two volumes) by Edwin Vieira (sp?).
Both of these men were interviewed in the movie America: From Freedom to Fascism. I suggest that EVERYONE get a copy of this DVD, or send people to Google Video to watch America: From Freedom to Fascism, and start spreading it to everyone who has questions. It will open their eyes, it will explain inflation better than you can (although not perfectly) and it will definitely make them interested in Ron Paul!!!!
I admire Edward Griffin and
I admire Edward Griffin and agree on a lot of things, but NOT on this issue. The problem that gold was the money from the beginning. It should never have been, because someone always ends up with it. Look where it went? To a private bank, the Federal Reserve bank.
If we had gold today and traded with China they would get paid from us in gold, while we get paid from them in paper money. How long would that last? I don't accept the notion that money must be intrinsic in value. In fact, I reject that argument, even though it was historically the way it went for many years.
99.9% of people couldn’t even explain the purpose of, or even what money is. That is really sad when they sue and depend on it every day.
You should
JJ
You should write a book about this to help educate the masses
JJ
he says that because that is
he says that because that is exactly what the fed does...they jst print up the money...the thing is, however, that they don't do it just straight up...they don't just literally go around distributing extra notes plain for all to see...the mechanism is very complex and it actually heavily involves the banking system..if you have the time please do read a brilliant little book on this by murray rothbard available online on mises.org called "the mystery of banking"...its short and shouldn't take long to read. but you can also try making people understand this issue by asking some very simple common-sense questions. ask them where they think the government gets the money to spend a trillion dollars on the iraq war without cutting any other expenditure...ask them how do politicians make promises of tax cuts and at the same time go to war and increase expenditure?...throw them an analogy with their own household...to spend somewhere they have to cut somewhere else or increase income...
Try This Resource
http://reactor-core.org/money-changers.html
In Liberty's Cause
In Liberty's Cause
Counterfeit
Try doing what the Federal Reserve does and just print some "money" out of thin air and see what they charge you with! LOL!
If you really want to blow these people's minds, tell them that the "Federal" Reserve isn't part of the "Federal" government!
Article 1 section 10 of the US constitution says
that "No State shall make anything but Gold and Silver Coin legal tender in payments of debt"
The Fed issues Notes. Federal Reserve Notes. A note is not money a note is a promissory not. It is a promise to pay, not payment.
So all you have are promises to pay since Article 1, Section 10 say that only Gold and Silver Coin is legal. A dollar bill used to say: "redeemable in lawful money" So if they were redeemable in lawful money then the note could not itself then be lawful money.
So now they have taken us completely off the Gold and Silver Standard and we can no longer redeem the notes in lawful money. So if you had a money press in your basement you could go \down there and print all the money you need to live on without having to do any real work or produce anything of value. That is in fact what The Federal Reserve a private Corporation does.
Are you starting to get it?
The problem with that
The problem with that Article and Clause is that is refers to States, not the Federal Government. The Supreme Court already stated it is specific to the States, not the Government. You need to look elsewhere for the Federal Government.
Mainly, Article 8, Clause 4, which states:
"The Congress shall have Power .... coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."
Key is COIN money and regulate the value. It was historic that money meant gold and solver coins, not paper money backed by nothing.
In fact
In Madison's Notes on the formation of the constitution, he writes that the framers decided specifically NOT to put in the words "and emit bills of credit" (paper money) in the Constitution, because they wanted to shut and bar the door against paper money! (This was because they had had the disastrous affair with the Continentals - another fiat currency of no value).
See how far we have come?
Since the government has the power to Borrow Money, it decided to give a power it never had - emitting bills of credit - to the Federal Reserve Bank, and then borrow "money" from the bank. Clever, eh?