Part 2
In Part 1 it was postulated that there exists two United States (federal) governments. One is the duly "established" civil government according to Romans 13:1-7 (de jure). The other is the illegitimate one without lawful title (de facto) and acting in name only.
It was also proposed that by understanding the nature and character of "money" one could recognize the true nature and character of the government in power. We began by documenting the biblical, natural and constitutional law definition of "money." This was necessary in order to be able to recognize and contrast the so-called money we have today. So, in this article, I will evidence how our once honest "money" (gold and silver coin) was replaced with worthless paper. This will help reveal the true nature and character of the present United States government in our nation.
Although many attempts have been made since the founding of our nation to grab control of the lawful money system from Congress and the People, a decisive turning point came in 1913. In that year, that Congress passed the Federal Reserve Act (63rd Congress, Session 1, Pubic Law 43, Dec. 23, 1913). This Act created a central banking system effectively turning over the control of our nation's monetary system into private hands.
The Federal Reserve is neither federal nor does it have reserves. It is privately owned. Evidence from original organizational certificates and certain Congressional efforts, such as by Congressman Wright Patman in the 1960s and a study by the Committee on Banking, Currency and Housing, 94th congress, 2nd Session, August 1976, unravel the mystery of who the private Class A stockholders are, revealing the following names of jewish origin:
It has been said that only God can create something out of nothing. Since 1913, however, the Federal Reserve or the "Fed," as it is often called, has the legal authority to create paper money out of nothing. That paper money is called the Federal Reserve Note (FRN). The Fed can even do a better magic trick than that. It can create "money" out of credit. That is, it can make bookkeeping entries and create "money" by just entering numbers into a computer.
In the original Act of 1913, the Fed and each member bank was required to maintain 40% gold reserves in proportion to the paper money (i.e. FRNs) or credit they were able to loan out. In other words, for every 40 Dollars in gold that a bank had in reserve, it could loan out $100 in FRNs or credit. Over time, this reserve requirement was dropped completely. Now, it is a 100% "float" (i.e. no reserve requirements). People began to falsely believe that this was "money."
The following are recorded hearings before the House Committee on Banking and Currency, September 30, 1941 between Representative Wright Patman and Governor Eccles of the Federal Reserve Board:
MR. PATMAN: How did you [the Fed] get the money to buy those two billion dollars worth of Government securities in 1933?
ECCLES: We created it.
MR. PATMAN: Out of what?
ECCLES: Out of the right to issue credit money.
MR. PATMAN: And there is nothing behind it, is there, except our government's credit?
ECCLES: That is what our money system is. If there were no debts in our money system, there wouldn't be any money.
When the People or government began to borrow these Notes (FRNs) or credit from the Fed banks, they became indebted to the Federal Reserve System and its private stockholder banking cartel for the principle and interest (i.e. usury). This indebtedness was called "U.S. Obligations."
This new paper and credit "money" system gave the illusion of "easy money" and prosperity. More jobs in industry were created, land prices went up and everybody wanted to spend and invest. The government also had to borrow from the Fed – especially to finance the war effort during WWI (which coincidentally began in Europe in 1914)the very year the Fed began its operations.
After a record number of business bankruptcies in the private sector, bank closures and farm foreclosures, the Great Depression hit in 1929. The Fed pulled the credit causing the stock market to crash. Many of our People lost everything. They were very rough times. Most did not know what was happening but certainly felt the effects of this new money system of which neither they nor their government had control.
It was not until 1933 that Franklin D. Roosevelt (FDR) was inaugurated President and things began to change. After four long hopeless years of suffering through the worst financial times in the history of our country (1929-1933), the People were ready to accept anything in order to return to a state of normalcy. Roosevelt was their hero and he gave them the much heralded "New Deal."
Though there are many important details of historical evidence regarding how this "New Deal" came about, the essence of it came down to this. The Fed offered to change its policy of credit restriction and began to issue more Federal Reserve Notes and credit to the People and the U.S. Government in exchange for all the gold reserves. You see, the "U.S. Obligations" that were created by this new false money system was now so seriously extended that the jewish creditors had to be satisfied. The Fed had control of the money, they had the upper hand and now, they wanted the gold. As a result, our once gold-backed system was eliminated and Congress declared it so (see House Joint Resolution 192, Suspension of Gold Standard, June 1933).
So, FDR, in collusion with the Fed, closed the banks for a week declaring an "emergency" and a "Bank Holiday." It was during this time that the Fed confiscated all the gold reserves it held to satisfy the "U.S. Obligations." As a matter of fact, Roosevelt, and later Congress, made it illegal for private citizens to own gold. The People were notified to turn their privately held gold in to any Federal Reserve Bank in exchange for paper money or face severe criminal penalties (Proclamations of F.D. Roosevelt, March 6, 1933, p. 1690).
Where did the gold go? Of the 320 million Dollars in gold, 300 million Dollars were "earmarked for [a] foreign account" (The Public Paper and Addresses of Franklin D. Roosevelt, Vol. 2, 1933, p. 27). It was shipped out of our nation to jewish banking houses in Europe!
There were a few patriots in Congress, however, who stood up in opposition to this "New Deal" pro-banker legislation. One of them was Louis McFadden. He objected:
"Mr. Speaker, I regret that the membership of the House has had no opportunity to consider or even read this bill . . . It is an important banking bill. It is a dictatorship over finance in the United States." – Congressional Record, March 9, 1933, p. 80
Almost a year previously, Congressman McFadden revealed his position on the Federal Reserve in an address to the House of Representatives on June 10, 1932:
Some people think the Federal Reserve banks are United States Government institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers. The Federal Reserve banks are the agents of the foreign central banks . . The truth is the Federal Reserve Board has usurped the Government of the United States . . ."
So, if there is no more gold (or silver which was taken in 1965) to act as the security for the "U.S. Obligations" created by the Federal Reserve money credit system, then what has been pledged for satisfaction of those "obligations?" Representative Patman summarized it best back in 1933:
Under the new law [see Public Laws of the 73rd Congress, March 9, 1933] the money [FRNs and credit] is issued to the [Federal reserve] banks in return for Government obligations, bills of exchange, drafts, notes, trade acceptances, and banker's acceptances. The money will be worth 100 cents on the dollar, because it is backed by the credit of the Nation. It will represent a mortgage on all the homes and other property of all the people in the Nation." – Congressional Record-House, March 9, 1933, p. 83
That's right. The collateral for this huge, unpayable debt are the lives, labor and property of all Americans. "We the People" and our children have become "We the Slaves." America is bankrupt.
As a result of our bankruptcy, the nature and character of the U.S. Government began to radically change. Since 1933, the federal government has exploded in size and scope in dominance and control over every area of commerce, industry and agriculture in America. It is more and more evident that our government is not serving the People for their good (as stipulated in Romans 13:4), but instead the private (and mostly foreign) interests of those who really control America's money system. The present government is not the government "established by God" (Romans 13:1) but one usurped by a few powerful jewish bankers who seek to destroy our country and our People and gain absolute control.
Have you been wondering, "What does money, credit and the Federal Reserve have to do with the gospel of the Kingdom or the message and mission of the church?"
Well, if you have not noticed from the story of money in this article, it effects the entire lives of the People – their businesses, families, future and freedom.
"Money" is not just an economic issue, however. Perhaps you have never considered that money is also a moral issue. Please carefully read some of the following quotes from our founding fathers as they help us understand the link between money and morality.
I am firmly of the opinion . . . that there never was a paper pound, a paper dollar, or a paper promise of any kind, that ever yet obtained a general currency [as money] but by force or fraud, generally both." – John Adams as quoted in Albert S. Bolles, Financial History of the United States, 1896, p. 139
The extension of the prohibition to bills of credit [Constitution, Article I, Section 10]must give pleasure to every Citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican governments, constitutes an enormous debt against the States . . ." – James Madison, Federalist Papers No. 44
It [paper money] corrupted the morals of the people; it diverted them from paths of industry to the ways of ruinous speculation; it had destroyed both public and private credit, and had brought ruin on numberless widows and orphans." – C.C. Pickney, See: Jonathan Elliot, Debates In The Several state Conventions On The Adoptions Of The Federal Constitution, Vol. 4, p. 306
If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on he continent their fathers conquered." – Thomas Jefferson, See: Money, Questions and Answers, by Rev. Charles Coughlin, Omni Books, P.O. Box 216, Hawthorn, California 90250.