Understanding - Don Pickney Ministries



Understanding the

Federal Reserve System of Economics

A National Currency with its Foundation Removed

Contributed by –

Dr. Don G. Pickney

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant bankers.”

-- Woodrow Wilson, (shortly after the Federal Reserve Act of December 23, 1913)

Let’s deal first with the “Federal Reserve Note” (FRN) method of funding U. S. Currency. We will begin with a short video documentary explaining how the Federal Reserve banking system works. Please note that there is no reason given to humanity why the U.S. Government needs to borrow money for its own currency from an outside bank when the U.S. Constitution gives it the power to issue its own government currency. (Control+Click or copy+paste if viewing this document on computer for online viewing of video, or type the following into your internet browser)



Now that you have seen the video, we can move to a closer look at the history and current position of FRNs.

Before 1913, when the Federal Reserve Banking system was created, the U.S. issued its own currency, its dollars regulated by the Senate Banking Committee of Congress, and backed by gold and silver. The fact that its foundation was gold and silver created its own inner regulation. That is, the worth of the dollar could be proven by the matching amount of gold and silver in the U.S. treasury vaults. There was no way of “artificially” valuing or devaluing its worth. Accountability was easy to maintain.

When the bankers who “sneaked in” the creation of the Federal Reserve began their scheme, they chose to use safety by slowly allowing their currency to “evolve.” So, at its inception, the currency had its appropriate constitutional gold or silver backing. Under the U.S. Constitution, a dollar is defined as 412 ½ grains of 9/10 fine silver (a silver dollar). In other words, it wasn’t as easy as “pumping currency” into the system, infinitely devaluing the existing money supply, and creating inexhaustible inflation. The Treasury Department had to order a Silver Dollar to be minted for every Dollar Bill issued. This guaranteed and regulated the worth of the dollar supply issued.

For example note the currency below: “The United States of America Will Pay To The Bearer On Demand One Hundred Dollars.”

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As witnessed by the front of the bill, at this point, the Federal Reserve was not attempting to pass this off as $100.00, rather it was a “Demand Note” for that amount. If you were holding that in your hand, you would not have $100.00 but a demand note for it. For this bill to be “lawful” to issue into the currency system, there would need be 100 Silver Dollars or its equivalent in silver bars or gold stored in the Treasury vaults.

There is another important legal note on the front of this same FRN. Note a close-up of the left front portion reads “This Note is Legal Tender for all Debts Public and Private, and is Redeemable in Lawful Money at the Untied States Treasury, or at any Federal Reserve Bank.”

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By their own witness, both the Federal Reserve, and the U.S. Treasury Department acknowledge that this so-called One Hundred Dollar bill is not itself “lawful money.” The bill is “redeemable in lawful money.”

Of course, the best foundation for money is Gold. While it holds a stability, compared to silver that is more volatile, it also responds quickly to the demand for safety. In times of national/world economic trouble, “money people” gravitate to gold to safeguard their financial assets. Here is an example of a “gold-backed” U.S. Currency:

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Again, you will note the front of the bill witnesses to the fact that this is not $10.00, rather it is a “promissory note” for $10.00. “The United States of America Will Pay the Bearer On Demand Ten Dollars.”

The back of this same Note is even more remarkable. It contains a quite lengthy contract at the bottom of the $10.00 bill. It reads “This Note is Receivable By all National and Member Banks and Federal Reserve Banks and for all Taxes, Customs and Other Public Dues. It is Redeemable in Gold on Demand at the Treasury Department of the United States in the City of Washington, District of Columbia or in Gold or Lawful Money at any Federal Reserve Bank.” Note below:

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Here is a close-up of the contract at the bottom of the Note:

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We will look at still another example. This time it will be a One Dollar Silver Certificate. This was used for the One Dollar currency for many years. It was simple because it merely stood good one Silver Dollar minted and stored in the U.S. Treasury. It was as simple to redeem into silver as going to the local bank and asking for one Silver Dollar in return for the bill. Here is what it stated, “This Certifies That There Is On Demand In The Treasury Of The United States of America One Dollar in Silver Payable To The Bearer On Demand.” As shown it is called a “Silver Certificate.”

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During this past period of our history, for many years, our economy was built on a foundation, a foundation of gold and silver, the universally accepted backing for any permanent, credible money system.

The Foundation Removed

In scripture, Jesus spoke of the foolishness of building something without a foundation.

Luke 6:47-49 MKJV “Whoever comes to Me and hears My Words, and does them, I will show you to whom he is like. (48) He is like a man who built a house and dug deep and laid the foundation on a rock; and a flood occurring, the stream burst against that house and could not shake it; for it was founded on a rock. (49) But he who hears and does not perform, is like a man who built a house on the earth without a foundation, on which the stream burst, and immediately it fell. And the ruin of that house was great.”

In this reference, Jesus compares two different ways of building… one with a foundation, the other without one.

As the Federal Reserve Bank, owned by private International Banking concerns, saw opportunity, it slowly began removing all of the boundaries and safeguards to protect our money supply and national economy.

What used to be a process of matching minted silver and gold coins to the amount of currency issued, changed over time becoming just a function of “turning on the money printing presses.” Need some more currency? …hit the presses!

Furthermore, the Federal Reserve Bank, empowered by Congress to have sole authority over the system is owned, not by U.S. companies, but by overseas international banking families who have, as their homeland, European countries:

Cliff Ford, author of the book, “Blood, Money and Greed,” was founder of Trinity Broadcasting Network’s weekly program, “International Intelligence Briefing,” and for many years co-hosted the program with Hal Lindsay. His resume reads, “Mr. Ford has an extensive background in international finance, publishing, and all facets of media and communications.” His book states as follows:

“The principal stockholders in the twelve Federal Reserve Banks, either directly or through their various interlocking directorates, are:

1. Rothschild Bank of London

2. Warburg Bank of Hamburg

3. Rothschild Bank of Berlin

4. Lehman Brothers of New York

5. Lazard Brothers of Paris

6. Kuhn Loeb Bank of New York

7. Israel Moses Seif Banks of Italy

8. Goldman, Sachs of New York

9. Warburg Bank of Amsterdam

10. Chase Manhattan Bank of New York

Mr. Ford goes on to state, “Every one of the principal stockholders – all international banks – is in some way indebted and owes allegiance, not to the government of the United States or its people, but rather to the Rothschild banking interests of London, Paris, and Vienna.

Today, we are left with a “fiat currency. Miriam-Webster Dictionary defines Fiat Currency as: “Noun – Money as paper currency not convertible into coin or specie of equivalent value.”

Here is what our current Dollar Bill looks like (it is by its own witness bankrupt and without any measure of real asset worth:

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You will notice that it is “fiat money.” It claims to be “One Dollar.” But we know that by order of the constitution, One Dollar is 412 ½ grains of 9/10 fine silver. This bill masquerades as a “Dollar.” But it is simply a bill of “debt.”

I encourage the reader to investigate the reality of what is the real problem with our U.S. economy, then do all that he/she may do to educate our U.S. citizens to the real need for monetary reform.

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