The Incubus and Succubus Nemeses
Social Security - Part 4
by Douglas V. Gnazzo, June 21, 2005
Nil nisi clavis deest
"I believe that banking institutions are more dangerous to our liberties than standing armies… If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around… will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." – [Thomas Jefferson]
As the title of this series implies, the subject under review is social security. However, there is much, much more to the "social security issue" than at first glance, meets the eye.
Obviously, there is the issue of social security as the social insurance earned benefit system it is, the purpose of which is to provide benefits (money), to workers and their family members upon retirement, disability, or death.
Included with this "basic issue" designation, is the question of the financial soundness and viability of the system in general, and how it relates to the overall financial soundness of our fiscal and monetary systems in general.
Then there are even further "issues" regarding social security. These include the initial creation of the system, and how the social security system was part and parcel of many similar social programs and policies of the then current times, often summarily referred to as – Roosevelt's New Deal.
We have already covered a good deal of the "basic issues", although there is still a fair amount of ground to cover. Prior to endeavoring to do such, however, we will first take an initial look at social security as part of the New Deal, and the why and wherefore of such socialistic policies and programs.
Included under this heading will be a discussion of the monetary system current at the time of creation of the New Deal. Consequently, some patience from the reader will be asked for, as the direct topic of social security will take a back seat for a time, to allow for the discussion of the social security system under the guise of the New Deal.
It will all come together at the end, as do the many parts of a jigsaw puzzle upon completion. So sit back and relax, as we go on a journey, to the land of the modern day Discouri - the Succubus and Incubus Nemeses. Nasty little apparitions, real yet not real, depending upon what you choose to accept; a delusional pair of psychic and emotional vampires, or nothing but shades blowing in the wind.
THE MONEY GAME
It has been repeatedly shown in earlier series and articles, that our original money was what is referred to as a hard money system, of silver and gold coin. This was the monetary system the Constitution mandates, and the Original Coinage Act of 1792.
See the Honest Money series, the Whence & Pence series, the Silver Is Money series, and for a shorter discussion see, Gold: Sovereign of Sovereigns and other articles by the author for a complete detailed work on money. Also note that a constitutional amendment has never been passed to change the Constitution - so the hard money mandate still stands as the Supreme Law of the Land.
Presently our monetary system is one of paper fiat, of Federal Reserve Notes and other fiduciary forms of paper money under the guise of credit, by the use of fractional reserve policy, a most dreaded thing - an abomination, a succubus incognito. The above listed earlier works discuss these issues as well.
The present task before us is of a bit of a different bent: how is a paper fiat monetary system directly related to the issue of social security, which in turn are both directly related to the financial soundness of our great country, and just what policies have led us down this path, and who is responsible?
Tough questions. Questions that should be answered by our elected representatives and officials. Ask your Congressman for some answers - vote accordingly. And remember, our elected representatives and officials:
Have taken an oath of office to uphold the Constitution and to serve We The People
HOW DID THIS COME TO PASS?
In 1840, legislation was passed for an independent Treasury. The following year the Whigs in power repealed the law. The Whigs also wanted to establish a new central bank, but President John Tyler stopped them dead in their tracks. He did good.
August, 1846, witnessed the reinstatement of an independent Treasury with the passage of a new Treasury Act, which provided that the public revenues be retained in the Treasury building and in subtreasuries in other cities.
The Treasury was to be completely independent of the banking and financial system of the nation.
Any payments by and to the government were to be made in gold and silver. The complete separation of the Treasury from the banking system was never completed, however.
One problem was that the gold and silver payments to and from the government that were the Treasury's job to expedite, continued to influence the money markets because the comings and goings of specie affected the amount of hard money in circulation.
On December 23, 1913, the U.S. Congress passed the Federal Reserve Act, which gave a constitutional power, expressly delegated to Congress, and only to Congress, over into the clutches and control of a private corporation - The Federal Reserve - keeper of the Nemeses.
Not a good idea, not to mention that it is unconstitutional.
In 1920, Congress passed the Independent Treasury Act, which called for shutting down the independent Treasury.
In 1921, the United States abolished the independent U.S. Treasury system. This allowed all United States money in the private Federal Reserve Banks to be kept separate from Federal Reserve Notes.
"That, if any moneys or bullion, constituting part of the trust funds or other special funds heretofore required by law to be kept in Treasury offices, shall be deposited with any Federal reserve bank, then such moneys or bullion shall by such bank be kept separate and distinct from the assets, funds, and securities of the Federal Reserve Bank and be held in the joint custody of the Federal Reserve Agent and the Federal Reserve Bank..."
The year ' 1933, the following Resolution was written by Eugene Meyers and the New York Banksters. It was given to President Hoover at 10.00 pm. March 3, 1933.
Resolution Adopted by the Federal Reserve Board of New York
WHEREAS, In the opinion of the Board of Directors of the Federal Reserve Bank of New York, the continued and increasing withdrawal of currency and gold from the banks of the country has now created a national emergency, and...
WHEREAS, It is understood the adequate remedial measures cannot be enacted before tomorrow morning,
NOW, THEREFORE, BE IT RESOLVED, That in this emergency the Federal Reserve Board is hereby requested to urge the President of the United States to declare a bank holiday Saturday, March 4, and Monday, March 6, in order to afford opportunity to governmental authorities and banks themselves to take such measures as may be necessary to protect the interests of the people and promptly to provide adequate banking and credit facilities for all parts of the country.
Proposed Executive Order
WHEREAS the nation's banking institution's are being subjected to heavy withdrawals of currency for hoarding; and
WHEREAS there is increasing speculative activity in foreign exchanges; and
WHEREAS these conditions have created a national emergency in which it is in the best interest of all bank depositors that a period of respite be provided with a view to preventing further hoarding of coin, bullion or currency or speculation in foreign exchange, and permitting the application of appropriate measures for dealing with the emergency in order to protect the interests of all the people; and
WHEREAS it is provided in Section 5 (b) of the Act of October 6, 1917, as amended, that "The President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency * * *" and
WHEREAS it is provided in Section 16 of the said Act that "Whoever shall willfully violate any of the provisions of this Act or of any license, rule, or regulation issued thereunder, and whoever shall willfully violate, neglect, or refuse to comply with any order of the President issued in compliance with the provisions of this Act shall, upon conviction, be fined not more than $10,000, or, if a natural person, imprisoned for not more than ten years, or both * * *"
NOW, THEREFORE, pursuant to the authority granted by said Act, I hereby order, direct and declare that:
- From Saturday, the fourth day of March, to Tuesday, the Seventh day of March, Nineteen Hundred and Thirty Three, both dates inclusive, there shall be maintained and observed throughout the United States of America a bank holiday for all of the purposes hereinafter set forth;
- During said holiday, no banking institution as hereinafter defined shall pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoarding thereof; nor shall any such banking institution pay out deposits, make loans or discounts, deal in foreign exchange, or transact any other banking business whatsoever.
- Upon the expiration of said holiday and until otherwise ordered by the President of the United States, such banking institutions may pay out, export, earmark or permit the withdrawal or transfer of gold or silver coin or bullion or currency, or deal in foreign exchange to extent as may be permitted by license or otherwise under regulations issued by the Secretary of the Treasury with the approval of the President.
- The Secretary of the Treasury, with the approval of the President, is authorized and empowered to prescribe such regulations as he may find necessary to carry out the purposes of the order.
- The term "banking institution" as herein used shall include all Federal reserve banks, national banking associations, banks trust companies, savings banks, building and loan associations, credit unions, or other corporations, partnerships, associations or persons engaged in the business of receiving deposits, making loans, discounting business paper, or transacting any other form of banking business."
The White House - March, 1933.
The following is a letter sent by President Hoover to Eugene Meyer:
"My dear Governor Meyer:
I received at half past one this morning your letter dated March 3rd. I must assume that this letter was written on the basis of information received by you prior to 11:30 o'clock last night for the reason that before your letter was sent you had certain information as follows:
- At 11 o'clock last night the President elect had informed me he did not wish such a proclamation issued.
- The Attorney General had renewed the same opinion which he had already given to the Board that the authorities on which you were relying were inadequate unless supported by the incoming Administration.
- That groups of representative bankers in both Chicago and New York, embracing members of the Board of Directors of the Federal Reserve Banks in those cities, were then in conference with the governors of the states of Illinois and New York, and that the governors of these two states were prepared to act if these representative groups so recommended. It appears that the governors did take action under their authorities, declaring a temporary holiday in these two critical states, and thus accomplishing the major purposes which the Board apparently had in mind.
In view of the above I am at a loss to understand why such a communication should have been sent to me in the last few hours of this Administration, which I believe the Board must now admit was neither justified nor necessary.
Yours faithfully, Herbert Hoover"
[Hon. Eugene Meyer, Federal Reserve Board, Washington, D.C.]
Needless to say, the entire contents of both letters are of critical importance. It would be much easier to explain what isn't important in the letters: nothing, it is all extremely vital. Suffice it to say, it is fairly obvious just how serious of a nature the above communiqu's were. The letters are pretty much self-explanatory in regards to such.
However, there are three points that stick out like - well, like gold and silver would stick out in a pile of paper fiat money.
- It is troubling and puzzling that the Federal Reserve is recommending, almost dictating, Presidential policy and subsequent actions they "urge" to be taken.
- President Hoover said that President elect Roosevelt had said that he didn't see the necessity or urgency in issuing a proclamation concerning the supposed national emergency.
- So what transpired for President Roosevelt to diametrically change his mind just a few hours later? Whatever it was, it must have been pretty serious to warrant such a turn of events.
SO WHAT’S THE POINT?
So what does any of this have to do with social security? Hell, Krugman doesn't even think that social security has much to do we anything, if anything, especially government deficits and debt over-issuance. Then again, Mr. Krugman doesn't seem to worry about much of anything, either, accept maybe the "privatizers" - who do seem to get him worked upped. Hopefully these articles will act as inspiration.
Well, remember back in part three, The Debt Demons and The Bond Creatures They Feed On, it was pointed out how all the graphs took a huge change or turning point right around 1933:
For some reason, the years 1930-1933 mark a huge turning point in the economy, as if we suddenly got a New Deal.
Maybe the above resolutions and whatever Presidential actions that followed, as were urged by the Federal Reserve, had something to do with the huge turning point in the economy, as shown on the charts and graphs - all clustered right around 1933. As major changes of import to our monetary system were being radically implemented over-night.
Maybe, maybe not. What do you think? Ask your Congressman what he thinks, and what he is doing in response to it, if anything. If not - why not? Isn't that what they get paid by We The People, to do?
ROOSEVELT’S FIRST ACTIONS AS PRESIDENT
The day after Roosevelt took the presidential oath of office, he issued a proclamation calling Congress into a special session. He also decreed a national banking holiday, the same exact action that he had refused to agree with, when Hoover had suggested it, just three days earlier. Hmm - Interesting.
On March 9, 1933, President Franklin Delano Roosevelt's signed Executive Orders 6073, 6102, 6111, and 6260.
The new President declared a: National Emergency that made it unlawful for any citizen of the United States to own gold. A nasty incubus that sucks the life's breath away from its victim during a false and delusional sense of ecstasy.
The ownership of gold � the constitutional form of our hard money currency was actually declared to be unlawful and illegal to own. This was a very sad day in our country's history and future, as:
basic right of the Constitution was declared illegal without a
and what amounted to a declaration of NATIONAL BANKRUPTCY was decreed.
WHAT NATIONAL EMERGENCY?
What was the national emergency that prompted Roosevelt to declare that We The People's gold was to be confiscated and called in?
By what authority did Roosevelt declare he had the right to confiscate We The People's gold?
We shall turn to the record to see exactly what the emergency was per our own government statutes:
1930s: Emergency Banking Relief Act of 1933
Emergency Banking Relief Act of 1933
U.S. Statutes at Large (73rd Congress, 1933 p. 1-7)
�To provide relief in the existing national emergency in banking, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary speedily to put into effect remedies of uniform national application.�
So, as the above clearly states, the emergency was a national emergency in banking
And by what authority was this national emergency declared and or authorized? Well let's once again look to the record as our own government statutes record in the above quoted Emergency Banking Relief Act of 1933:
"Section 1. The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made, or issued by the President of the United States or the Secretary of the Treasury since March 4, 1933, pursuant to the authority conferred by subdivision (b) of section 5 of the Act of October 6, 1917, as amended, are hereby approved and confirmed.
So the authority was pursuant to the authority of subdivision (b) of section 5 of the Act of October 6, 1917, as amended, are hereby approved and confirmed." This is referring to
The Trading With The Enemy Act, which comes under The War Powers Act
Notice, however, the last section that comes right after the date of 1917, which states:
"...as amended, are hereby approved and confirmed..."
So the original Trading With The Enemy Act wasn't apparently exactly what Roosevelt wanted or needed, so he amended the act. Interesting use of power, to say the least, sort of unlimited powers - yet the whole purpose of the Constitution was to limit the powers of government. Hmm. Very interesting.
But how bad could it be, this amended stuff? I mean, what exactly was amended? The following are some of the highlights, as to go through all of the amendments, might be more than most could bare.
Section 2. Subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat. L.
411), as amended, is hereby amended to read as follows:
''(b) During time of war or during any other period of national emergency declared by the President, the President may, through any agency that he may designate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange, transfers of credit between or payments by banking institutions as defined by the President, and export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency, by any person within the United States or any place subject to the jurisdiction thereof; and the President may require any person engaged in any transaction referred to in this subdivision to furnish under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed. Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both. As used in this subdivision the term 'person' means an individual, partnership, association, or corporation."
Now that wasn't too bad - was it? I don't know. I guess it would depend on what the original act said, and just what changes or amendments have been made. Man, they sure made this stuff hard to track down. But we shall remain undaunted and stand steadfast at the task before us. So onward to the original act for comparison.
Subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat. L.
411), as amended, is hereby amended to read as follows:
Within the Act they rewrote Section 5(b) of the "Trading with the enemy Act" of 1917.
"During time of war or any other period of national emergency declared by the
That the President may , through any agency that he may
designate, or otherwise, investigate, regulate, or prohibit, under
such rules and regulations as he may prescribe, by means of licenses or
otherwise, any transactions in foreign exchange, export or
earmarkings of gold or silver coin or bullion or currency, transfers
of credit between or payments by banking institutions as defined by
the President, and export, hoarding, melting, or earmarking of gold or
silver coin or bullion or currency, in any form ( other
than credits relating solely to transactions to be executed wholly
within the United States );
and transfers of evidence of indebtedness or of ownership of property
between the United States and any foreign country, whether
enemy, ally of enemy or otherwise ,
or between residents of one or more foreign countries,
by any person within the United States or any place subject to the
jurisdiction thereof; and he the President may require
any such person engaged in any such transaction referred to in
this subdivision to furnish, under oath, complete information
relative thereto, including the production of any books of account,
contracts, letters or other papers, in connection therewith in the
custody or control of .such person, either before or after such
transaction is completed..."
As can readily be seen, two points stick out like two swollen thumbs. And both are of unbelievable importance, with even more important ramifications and consequences. Another set of nemeses, the Incubus and Succubus Discouri Twins.
- Transactions solely and wholly within the United States had been exempt in the original
[yet now such transactions were no longer exempt]
- The act covered property of foreign countries, whether enemy, ally of enemy or otherwise
In the original [in the amended section the designation of enemy is left out except in the title and the general reason and reference for confiscation, which makes it seem like we are the enemy]
One can search from now until the end of time, and you will not find any mention of enemy or the use of the word enemy in the amended section as stated in the Emergency Banking Relief Act of 1933. Nor can one find that transactions solely and wholly within the United States are exempt.
As a matter of fact, the amendment contains exactly the opposite wording, meaning, and definitions.
"...any transactions in foreign exchange, transfers of credit between or payments by banking institutions as defined by the President."
"...or currency, by any person within the United States or any place subject to the jurisdiction thereof..."
Now, hopefully I am wrong, and would love to have someone correct me, but it appears that by taking the words and reference to enemy out of the body of what is the Trading With The Enemy Act, and replacing it with any person within the United States, which persons were exempt in the original act, it now sounds like We The People or any person within the United States could now be considered �the enemy�. Remember the act is still designated as The Trading With The Enemy Act. Double Hmm. Major bummer.
And because of it’s relevancy to the issue of money and debt, the following is sited from the Emergency Banking Relief Act of 1933:
A CRYING SHAME
Sec. 401. The sixth, paragraph of Section 18 of the Federal Reserve Act is amended to read as follows:
''Upon the deposit with the Treasurer of the United States, (a) of any direct obligations of the United States or (b) of any notes, drafts, bills of exchange, or bankers' acceptances acquired under the provisions of this Act, any Federal reserve bank making such deposit in the manner prescribed by the Secretary of the Treasury shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, duly registered and countersigned.
When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the United States so deposited as security; and, when issued against the security of notes, drafts, bills of exchange and bankers' acceptances acquired under the provisions of this Act, the amount thereof shall be equal to not more than 90 per cent of the estimated value of such notes, drafts, bills of exchange and bankers' acceptances so deposited as security.
Such notes shall be the obligations of the Federal reserve bank procuring the same, shall be in form prescribed by the Secretary of the Treasury, shall be receivable at par in all parts of the United States for the same purposes as are national bank notes, and shall be redeemable in lawful money of the United States on presentation at the United States Treasury or at the bank of issue.
The Secretary of the Treasury is authorized and empowered of prescribe regulations governing the issuance, redemption, replacement, retirement and destruction of such circulating notes and the release and substitution of security therefore. Such circulating notes shall be subject to the same tax as is provided by law for the circulating notes of national banks secured by 2 per cent bonds of the United States.
No such circulating notes shall be issued under this paragraph after the President has declared by proclamation that the emergency recognized by the President by proclamation of March 6, 1933, has terminated, unless such circulating notes are secured by deposits of bonds of the United States bearing the circulation privilege.
When required to do so by the Secretary of the Treasury, each Federal reserve agent shall act as agent of the Treasurer of the United States or of the Comptroller of the Currency, or both, for the performance of any of the functions which the Treasurer or the Comptroller may be called upon to perform in carrying out the provisions of this paragraph.
Appropriations available for distinctive paper and printing United States currency or national bank currency are hereby made available for the production of the circulating notes of Federal reserve banks herein provided; but the United States shall be reimbursed by the Federal reserve bank to which such notes are issued for all expenses necessarily incurred in connection with the procuring of such notes and all other expenses incidental to their issue, redemption, replacement, retirement and destruction.� [Emergency Banking Relief Act of 1933: TITLE IV Sec. 401]
Pretty heavy stuff, whatever the hell it means. Where's Krugman just when you need him. Well, I'll give translating the above into English a try.
Remember how once upon a time, our monetary system was according to the Constitution � a hard money system of silver and gold coins. Then eventually paper bank notes were issued and �backed� by silver and gold in fractional reserve style. Finally, our monetary system devolved into a dysfunctional mess of purely fiat paper money, backed by nothing but empty promises or obligations � debt.
Well, section 401 as above, goes a long, long way in debasing our original constitutional hard monetary system of real money, where payment of debt could actually be with or by the currency, because the currency was not representative of debt or promises to pay, as in obligations, but was the means to pay off such debt with; to the present day monetary system where the currency in circulation is backed by nothing but other government obligations of paper debt, i.e. bonds.
We went from a monetary system of assets, of real, honest money, in the constitutional form of silver and gold coin, to a debt system backed by mere promises to pay, by other obligations of debt, a dishonest monetary system of wealth transference. This is what the paragraph that reads as follows is talking about � the Discouri Twins � the Succubus and Incubus Nemeses of despair:
�When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the United States so deposited as security;�
Our monetary system just stepped over the edge, into the abyss, we now have:
public national credit system where debt is legal tender
money which is allowed to circulate and to be accepted as the Currency.
Such a system is the elite collectivist�s dream come true, as it is the perfect wealth transference mechanism. SeeHonest Money Series,Gold: Sovereign of Sovereigns, andSilver IS Money for a detailed discussion of this issue.
Suffice it to say that such a system is a vile and wicked creature � an abomination that walks the face of the earth in darkness.
To view the entire Emergency Banking Relief Act of 1933 click on American History Documents II.
JUST TO BE CLEAR
What the above says, is that all our good faith and credit was pledged as the surety for the debt by the same Congress who created the means that allowed the debt issuance in the first place. And how was this done, by House Joint Resolution 192, quite a piece of work all on its own:
On June 5, 1933, Congress passed House Joint Resolution 192 in order to suspend the gold standard and to make it appear that the gold clause in the national constitution had been revoked.
However, we know that such cannot be lawfully done without a constitutional amendment, which has never occurred. Since the passing of this resolution in 1933:
No person in America has been able to lawfully pay off a debt
House Joint Resolution 192
States in part that:
�Whereas the holding or dealing in gold affect the PUBLIC INTEREST, and are therefore subject to proper regulation and restriction: and whereas the existing emergency has disclosed that provisions of obligations which purport to give the obligee a RIGHT TO REQUIRE PAYMENT in gold or a particular kind of coin or currency....ARE INCONSISTENT WITH THE DECLARED POLICY OF CONGRESS IN THE PAYMENT OF DEBTS...........
...........PAYMENT in gold or a particular kind of coin or currency, or in an amount in money of the united States measured thereby, IS DECLARED TO BE AGAINST PUBLIC POLICY:
........................AND...........EVERY OBLIGATION, HERETOFORE OR HEREAFTER INCURRED, SHALL BE DISCHARGED upon payment, dollar for dollar, in any coin or currency which, at the time of payment, is legal tender for public and private debts....
All coins and currencies of the United States (including Federal Reserve Notes and circulating notes of Federal Reserve banks and national banking associations) heretofore, or hereafter, coined or issued, SHALL BE LEGAL TENDER for all debts, public and private, public charges, taxes, duties, and dues,....�
[House Joint Resolution 192, 73d Congress, Sess.I, Ch. 48, June 5, 1933 (Public Law No. 10 )]
As I said, it is quite a piece of work, one I would not want on my resume, especially the one you hand in at the big interview � the reckoning, prior to being allowed to pass through those big white pearly gates.
It is no longer possible in this great country of ours, to any longer be able to lawfully pay a debt. Nor is it possible to truly or lawfully own anything.
All one can do, is tender in transfer of debts, to offset one debt with another, to transfer debt from one owner to another, which means the debt is perpetual � it can not be paid off under the present monetary system.
The suspension of the gold standard, and prohibition against paying debts, removed real honest money and payment of debt from the system and replaced it with a national public credit system, where debt is legal tender money, and is circulated and accepted as the currency.
It is quite obvious from the above, that Roosevelt not only messed with our hard money system of the Constitution � he confiscated it, which would seem to go against the constitutional right of private property and or just compensation. Which in turn:
Would also appear to go against his oath of office to uphold and protect the Constitution
The year 1933, saw a general banking crisis bad enough for the government to declare a national emergency, which meant that in only twenty short years after being given the reigns of control over our monetary system, the Fed screwed the whole thing up bad enough to warrant a national crisis, which supposedly was one of the Fed's raison d�etres for being � to stop panics, and runs on banks, etc.
To avert exactly just what they had created � a
National Emergency and Crisis
And yet we find that it was the Federal Reserve that was dictating Presidential Policy to the President as to how to handle the crisis, the crisis it had caused. It was the Federal Reserve that wrote the blueprint to save the banks � by confiscating and outlawing We The People's Gold, which is one of the most basic and important rights that the Constitution grants. Where was the protection of our constitutional rights?
Why it almost sounds like something the Weimar Republic would do, not the United States of America � the home of the free and the brave. Now Remember what was done to save the banks:
We The People's Gold Was Called In � Confiscated � Some say it was Stolen.
It Became Illegal and a Federal Crime to own Gold, the Original Real Money of our Constitution
And these far sweeping changes were implemented in less than 40 minutes by Congress. Here is what a true representative of the people, and a honest patriot of the country said about the passage of this bill:
What had just transpired in the House during the session was best expressed by
�Mr. LUNDEEN. Mr. Speaker, today the Chief Executive sent to this House of Representatives a banking bill for immediate enactment. The author of this bill seems to be unknown. No one has told us who drafted the bill. There appears to be a printed copy at the speakers desk, but no printed copies are available for the House Members. The bill has been driven through the House with cyclonic speed after 40 minutes debate, 20 minutes for the minority and 20 minutes for the majority.
I have demanded a roll call, but have been unable to get the attention of the Chair. Others have done the same, notably Congressman SINCLAIR of North Dakota, and Congressman BILL LEMKE, of North Dakota, as well as some of our other Farmer Labor Members. Fifteen men were standing, demanding a roll call, but that number is not sufficient; we therefore have the spectacle of the great House of Representatives of the United States of America passing, after a 40- minute debate, a bill its Members never read and never saw, a bill whose author is unknown. The great majority of the Members have been unable to get a minute's time to discuss this bill; we have been refused a roll call; and we have been refused recognition by the Chair. I do not mean to say that the Speaker of the House of Representatives intended to ignore us, but everything was in such a turmoil and there was so much excitement that we simply were not recognized.
I want to put myself on record against procedure of this kind and against the use of such methods in passing legislation affecting millions of lives and billions of dollars. It seems to me that under this bill thousands of small banks will be crushed and wiped out of existence, and that money and credit control will be still further concentrated in the hands of those who now hold the power.
It is safe to say that in normal times. after careful study of a printed copy and after careful debate and consideration, this bill would never have passed this House or any other House. Its passage could be accomplished only by rapid procedure, hurried and hectic debate, and a general rush for voting without roll call.
I believe in the House of Representatives. I believe in the power that was given us by the people. I believe that Congress is the greatest and most powerful body in America, and I believe that the people have vested in Congress their ultimate and final power in every great, vital question, and the Constitution bears me out in that.
I am suspicious of this railroading of bills through our House of Representatives, and I refuse to vote for a measure unseen and unknown.
I want the RECORD to show that I was, and am, against this bill and this method of procedure; and I believe no good will come out of it for America. We must not abdicate our power to exercise judgment. We must not allow ourselves to be swept off our feet by hysteria, and we must not let the power of the Executive paralyze our legislative action. If we do, it would be better for us to resign and go home-and save the people the salary they are paying us.
I look forward to that day when we shall read the bill we are considering, and see the author of the bill stand before the House and explain it, and then, after calm deliberation and sober judgment- after full and free debate-I hope to see sane and sensible legislation passed which will lift America out of this panic and disaster into which we were plunged by the World War.�
[77 CONG. REC. 83 1933]
Man, does the above seem awfully reminiscent of the manner in which the Federal Reserve Act was pushed through Congress on Christmas Eve. Rush, rush, rush; hurry, hurry, hurry � before anybody has time to figure out what's happening. Do you see a pattern of behavior forming in regards to Federal Reserve policy? Or in the least, within the legislative acts that involves the Fed?
Who Died and Left Them King?
Unfortunately, it seems to becoming clearer and clearer, as to why those earlier charts and graphs all took a big turn of change right around 1932-1933. Lots of �stuff� going on in those few years.
What else could one expect from a national banking emergency and crisis that was �fixed� by confiscating the people's gold and giving it to the banks to bail themselves out with. That should have created some kind of turbulent repercussions, as that was not subtle behind the scenes action � that was gut wrenching, pull your heart out, see if you can survive action.
And it did send shock waves through the land, some still being felt today. Some survived, some didn't. Some still feel the aftershocks even now, some don't. But scars have been left behind, covering the face of the land. Cui Bono?
It almost sounds like somebody went bankrupt, or would have, if they didn't get all that gold into their grimy little clutches. They say there was a National Crisis, but they got it wrong, again:
The Real Crisis was Stealing the People's Gold and Stomping all Over the Constitution.
1933 was a scary time, as good, honest, hard working people had come upon hard times, by the tens of thousands. There was pain and suffering throughout the land. The air was thick and heavy, with a feeling of despair permeating the air.
Even the mighty winds dared not blow, and had gone into hiding, as the dreaded Twins of Nemesis � the Incubus and Succubus creatures, were out ravaging the land, searching for unwary victims by night, and trusting souls during daylight.
First, the people's gold and silver coin money, the honest money of the Constitution, was taken from them, and then it was made illegal to own or have possession of � a right of ownership of private property granted by the Constitution � The Supreme Law of the Land.
Next, the people were forced to accept paper money, no longer redeemable in gold and silver coin. This certainly was a New Deal, sounds more like a Raw Deal. Is it any wonder that a social security insurance system would rise from the ashes of the demise of the hard money system of the Constitution.
Something, anything, had to be offered to the public, to make it appear that the government was in control of the fiscal and monetary affairs of the country, and that the people would be �taken care of�. If the people are dependent upon the government, then the government has complete control over them.
So what talisman did the government offer to the people, tossed as a bone to a starving dog: Social Security.
Let's hope that Jefferson's vision of the future is wrong, and his words at the beginning of this paper do not come to pass, or if they have come to pass, that they are balanced by the reckoning, so as to wipe the slate clean, to provide a sound foundation upon which to build. Where dependence goes, so goes liberty and freedom � that's why they called it:
The Declaration of Independence
Part five to be forthcoming.
Truth and Falsehood ~
your wealth was acquired ... by disturbing the tombs of ancient kings
which are full of gold and treasure,
you deserve not only to be put on your trial, but also to forfeit your life; for these things are wealth,
no doubt, but of an infamous and inhuman kind."
[Flavius Philostratus, Life of Apollonius of Tyana]
© 2005 Douglas V. Gnazzo
All rights reserved. Any republication without written permission of author and Financial Sense prohibited.