Problems Abound with American Monetary System.

The American monetary system was established with the creation of the U.S. Mint in Philadelphia. The first American coins were struck there in 1793.

The government can only tax it’s people so much, so whatever extra money they want, the FED prints or creates out of thin air. This devalues dollars, it provokes inflation and lowers value or buying power.

Originally, a paper dollar was a paper promise, a contract, to be paid in gold or silver.

The issuers of dollars have failed to pay on that promise numerous times in recent history, at a rate of about once per generation.

The Federal Reserve, the issuers of paper money, defaulted on domestic gold redemption in 1934, then defaulted on silver redemption in 1968.

It defaulted on international gold redemption in 1971 and those who issue United States paper money, which are Federal Reserve notes, are in default.

The creation of paper money is fraud, and was used to steal away gold and silver from the hands of the people.

All paper money is borrowed into existence, which does not make the excessive creation of paper money right.

This fraud is an additional theft against all people who are already deceived by holding onto the fraudulent dollars, instead of gold and silver.

The total amount of money in the American monetary system is known as M3, and was almost $9 Trillion as of January, 2004.

War and Debt

Originally, this debt was incurred to a large degree to fight World War II. As the debt soared from under $50 billion to over $250 billion by the war’s end.

This was fraud, however, because at the time, the United States was on a gold standard at $35/oz., and the government never borrowed $250 billion worth of gold in the first place.

It only borrowed paper money that was created to excess. The debt is used mainly as a means to hide the fact of the excessive creation of paper money.

By the end of February, 2004, the debt was rounded up to $7.1 Trillion, and is as fraudulent today as it ever was.

Banks don’t even have the fraudulent paper money they say you have on account.

The American monetary system currently in place says that a bank have on-demand deposits, but they loan deposits out long term, which is fraud since one cannot demand your deposits when needed all time.

If its big cash it must be ordered in advance and the bank will have to order from the Fed.

Any more than a few thousand dollars and sometimes the bank will not even give the cash but rather a cashier’s check.

In June of 2001, the fractional reserve requirement was $37 billion for the entire U.S. banking system and M3 was $7,605 billion.

Therefore, in total, the reserve requirement was 37/7605, or .49%. That is or less than half of 1%.

Explaining the FDIC

The FDIC, in theory, insures accounts for up to $100,000. As inflation continues, the value of this number grows smaller every year.

In theory, this insurance is in place in case the bank is broke and fails due to a bank run, and insufficient fractional reserve requirements.

In practice, it is there to back up failed banks the Federal Reserve refuses to bail out.

This means that sometimes depositors have to wait months to be paid this insurance money.

Therefore, the FDIC does not have the money to back up the accounts either, which is fraud, and further deteriorates the security of the American monetary system.

We would need this insurance the most if there was runaway inflation, so that if there was runaway inflation and a million dollars became nearly worthless, then the effective insurance amount of the FDIC would be close to nothing.