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The Economic Rape of America - Chapter Two

THE DESTRUCTION OF THE U.S. DOLLAR

You that trample on the needy, and bring ruin to the poor
of the land, saying... We will make the ephah small and the shekel great, and
practice deceit with false balances.
Amos 8, verses 4-5

"It is apparent from the whole context of the Constitution as well as the
history of the times which gave birth to it, that it was the purpose of the
Convention to establish a currency consisting of the precious metals. These were
adopted by a permanent rule excluding the use of a perishable medium of
exchange, such as of certain agricultural commodities recognized by the statutes
of some States as tender for debts, or the still more pernicious expedient of
paper currency."
-- Andrew Jackson, 1836

"There is no subtler, no surer means of overturning the existing basis of
society than to debauch the currency. The process engages all the hidden forces
of economic law on the side of destruction, and does it in a manner which not
one man in a million is able to diagnose."
-- John Maynard Keynes, 1920

It is the continuous loss of value that constitutes the destruction of the
dollar. Because it happens gradually most of us are not alarmed by it. It is
like the frog in hot water. If you throw a live frog into boiling water, it
jumps out immediately. But if you put in a pot of cold water on the stove, it
just sits. If you gradually heat the water, the frog just sits. By the time the
frog realizes the water is too hot, it doesn't have the strength to jump and it
burns to death. In relation to the sinking value of the dollar most of us are
"sitting frogs!"

This chapter is largely based on The Biggest Con: How the Government is
Fleecing You by Irwin A. Schiff. According to Schiff, "U.S. politicians,
contrary to the Constitution and the U.S. criminal code, have conned all
citizens out of their money savings. This monetary swindle was perpetuated
despite a reasonably literate electorate, despite our well-developed financial
and banking institutions, and despite our many institutions of higher learning
and the nation's extensive network of information media." Let us now examine the
"mechanics" of the swindle.

THE GREAT MONEY SWINDLE

Look at Figure 1 below, which depicts a Certificate of Deposit for ten silver
dollars issued in 1880. Banking originated in the middle ages. Because of the
inconvenience of carrying a lot of silver or gold, some of it was deposited with
a blacksmith, jeweler, or goldsmith. A certificate of deposit was issued. The
certificate could be used as payment. The holder could present the certificate
to the "banker" and receive the silver or gold it represents, guaranteed by the
terms, "payable to the bearer on demand." Note that the certificate says, "This
certifies that there have been deposited with the Treasurer U.S. ten silver
dollars." This Certificate of Deposit is in the tradition of how banking
originated.

Figure 1:

CERTIFICATE OF DEPOSIT
THIS CERTIFIES THAT
there have
been deposited with
THE TREASURER U.S.
TEN

SILVER DOLLARS

payable to the bearer on demand

UNITED STATES CERTIFICATE OF DEPOSIT 1880
(REDEEMABLE IN
SILVER)

Now examine Figure 2. This is a Silver Certificate which states, "This
certifies that there is on deposit in the Treasury of The United States of
America ten dollars in silver payable to the bearer on demand." For all intents
and purposes this Silver Certificate is equivalent to the Certificate of Deposit
in Figure 1. But there is a very important difference: the Silver Certificate
also states, "This certificate is legal tender for all debts, public and
private." This is a reflection of a "legal tender law." It in effect says,
"Citizens are not qualified to choose their money; government dictates what
shall be used as money." This sets the stage for the swindle. Government can
debase the currency and force citizens to use it.

Figure 2:

SILVER CERTIFICATE
THIS CERTIFIES THAT THERE
IS ON DEPOSIT IN THE TREASURY OF
THE UNITED STATES OF AMERICA

THIS CERTIFICATE IS LEGAL TENDER
FOR ALL
DEBTS, PUBLIC AND PRIVATE

TEN DOLLARS
IN SILVER PAYABLE TO THE BEARER ON DEMAND

UNITED STATES SILVER CERTIFICATE 1934
(REDEEMABLE IN SILVER)

In Figures 3 and 4 below we see the same difference between the gold
certificates of 1907 and 1928. As soon as citizens grant their government the
power to dictate what shall be used as money, they open the door to being
swindled. Regrettably, that is precisely what has happened to the American
public. And it happened gradually - like it happened to the frog who burnt to
death.

Figure 3:

THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE
TREASURY OF THE
UNITED STATES OF AMERICA

TEN DOLLARS IN GOLD COIN
PAYABLE TO THE BEARER ON DEMAND

UNITED STATES GOLD CERTIFICATE 1907
(REDEEMABLE IN GOLD)

Figure 4:

THIS CERTIFIES THAT THERE HAVE
BEEN DEPOSITED
IN THE TREASURY OF
THE UNITED STATES OF AMERICA

THIS CERTIFICATE IS A LEGAL TENDER
IN THE AMOUNT THEREOF
IN PAYMENT OF ALL
DEBTS AND DUES PUBLIC AND PRIVATE

TEN DOLLARS
IN GOLD COIN PAYABLE TO THE BEARER
ON DEMAND

UNITED STATES GOLD CERTIFICATE 1928
(REDEEMABLE IN GOLD)

Look at Figure 5 below. Here we have a Federal Reserve Note, dated 1928,
"Redeemable in gold on demand at the United States Treasury or in gold or lawful
money at any Federal Reserve Bank." This means the holder of the note could
exchange it for $10 worth of gold at the U.S. Treasury. However, at a Federal
Reserve Bank they could, instead of gold, give the holder "lawful money." In
Chapter One we saw that "lawful money" is defined by law as gold and silver. No
doubt, the term "lawful money" is introduced as part of the plot to gradually
debase the currency. The water is gradually getting warm!

Figure 5:

REDEEMABLE IN GOLD ON DEMAND
AT THE UNITED
STATES TREASURY
OR IN GOLD OR LAWFUL MONEY
AT ANY FEDERAL RESERVE BANK

WILL PAY TO THE BEARER ON DEMAND

TEN DOLLARS

FEDERAL RESERVE NOTE 1928
(REDEEMABLE IN GOLD OR "LAWFUL
MONEY")

Now look at Figure 6. This is a National Currency Note, dated 1929,
"Redeemable in lawful money of the United States Treasury or at the Bank of
Issue." The "gold" is gone. Another step of the swindle has been taken. The
water is getting hot!

Observe that neither the Figure 5 Federal Reserve Note, nor the Figure 6
National Currency Note say anything about "legal tender."

Figure 6:

NATIONAL CURRENCY
SECURED BY UNITED STATES
BONDS DEPOSITED WITH THE TREASURY OF
THE UNITED STATES OF AMERICA

WILL PAY TO THE BEARER ON DEMAND
TEN
DOLLARS

REDEEMABLE IN LAWFUL MONEY OF
THE UNITED
STATES AT UNITED STATES
TREASURY OR AT THE BANK OF ISSUE

NATIONAL CURRENCY 1929
(REDEEMABLE IN "LAWFUL MONEY")

Now look at Figure 7 below, a Federal Reserve Note, dated 1934. "This note is
legal tender for all debts public and private and is redeemable in lawful money
at the United States Treasury or at any Federal Reserve Bank." Compare this to
the Figure 5 Federal Reserve Note. One difference is that the "gold" has been
dropped. Another difference is that the 1934 Federal Reserve Note has become
"legal tender." Maybe, when a swindle is pulled on a grand scale, the cruder it
is, the more likely it succeeds!

Figure 7:

THIS NOTE IS LEGAL TENDER FOR ALL DEBTS
PUBLIC
AND PRIVATE AND IS REDEEMABLE IN
LAWFUL MONEY AT THE UNITED STATES TREASURY

OR AT ANY FEDERAL RESERVE BANK

WILL PAY TO THE BEARER ON DEMAND
TEN DOLLARS

FEDERAL RESERVE NOTE 1934
(REDEEMABLE IN "LAWFUL MONEY")

Figure 8 shows a recent Federal Reserve Note. It cannot be redeemed for
anything. It is a note to pay nothing. The swindle is complete. The water is
near boiling. The frog is almost dead. Its awareness is far too low for it to
realize what happened…

"Counterfeit" means "to copy or imitate in order to deceive" or "something
likely to be mistaken for something else of higher value."

Figure 8:

THIS NOTE IS LEGAL TENDER
FOR ALL DEBTS,
PUBLIC AND PRIVATE

TEN DOLLARS

FEDERAL RESERVE NOTE 1988
(NOT REDEEMABLE; A NOTE TO PAY
WHAT?
"WILL PAY TO THE BEARER ON DEMAND" HAS DISAPPEARED)
IS THIS
COUNTERFEIT MONEY?

Now examine Figure 9 below. Here we have a 1953 $2 United States Note. It is
"legal tender at its face value" and it says, "Will pay to the bearer on
demand." But what is its "face value" and how will the "two dollars" be paid?
Compare this to the 1976 $2 Federal Reserve Note in Figure 10. Here there is
nothing about "face value" or "will pay to the bearer on demand." Can we
conclude that by 1976 the bankers and politicians were so secure in their belief
that the American public had become too brainwashed to notice the swindle, and
that there was no longer any need for pretensions like "face value" and "will
pay to the bearer on demand?"

Figure 9:

THIS NOTE IS LEGAL TENDER
AT ITS FACE VALUE
FOR ALL DEBTS
PUBLIC AND PRIVATE

THE
UNITED STATES OF AMERICA
WILL PAY TO THE BEARER ON
DEMAND
TWO DOLLARS

UNITED STATES NOTE 1953
(NOT REDEEMABLE; A NOTE TO PAY
WHAT?)
IS THIS COUNTERFEIT MONEY?

Figure 10:

THIS NOTE IS LEGAL TENDER
FOR ALL DEBTS,
PUBLIC AND PRIVATE

THE
UNITED STATES OF AMERICA
TWO DOLLARS

FEDERAL RESERVE NOTE 1976
(NOT REDEEMABLE; A NOTE TO PAY
WHAT?
"WILL PAY TO THE BEARER ON DEMAND" HAS DISAPPEARED)
IS THIS
COUNTERFEIT MONEY?

OTHER ASPECTS OF THE SWINDLE

The stage for the swindle was set by the U.S. Constitution, Article I,
Section 8, "Congress shall have power to coin money, regulate the value thereof"
- see Chapter Five. This opened the door to a government monopoly being
established. The second step was passage of the National Bank Act of 1863, which
effectively outlawed private currency. The monopoly was now complete. In 1913
the Federal Reserve System was created, when Congress (unconstitutionally)
delegated its monopoly currency power to the Federal Reserve Corporation, a
private company.

Our Founding Fathers thoroughly understood currency debasement and how it
usually leads to the destruction of civilization. The Coinage Act of 1792
provided the death sentence for anyone convicted of debasing U.S. coins.

In 1933 President Franklin D. Roosevelt arbitrarily reduced the amount of
gold the dollar represented from one twentieth of an ounce to one thirty-fifth
of an ounce. This amounted to a 43% devaluation (or debasement) of the dollar -
a declaration of bankruptcy stating that the U.S. Treasury would "settle" its
debts by paying 57 cents in the dollar. It also meant, in terms of gold, that
overnight the government had robbed the American people of 43% of their savings.
By the standards of our Founding Fathers this was a crime punishable by death.

In 1934 Roosevelt's "New Deal" took away the American citizen's right to own
gold, a right Americans had enjoyed since the first pilgrims arrived. This also
meant the discontinuation of gold certificates.

In 1963 silver certificates were discontinued. On November 26, 1963, the day
of John F. Kennedy's funeral, the first 50 million "no-promise" Federal Reserve
Notes were released into circulation. We shall return to this topic.

In 1913 when the Federal Reserve System was established, Federal Reserve
District banks were required to maintain a 40% gold backing for Federal Reserve
Notes, and a 35% gold backing for deposits. In 1945 the gold backing for both
notes and deposits was dropped to 25%. In 1965 the gold backing requirement for
deposits was eliminated completely. And in 1968 the gold backing requirement for
Federal Reserve Notes was eliminated.

Up to 1965, U.S. coins (dollar, half-dollar, quarter, and dime) contained 90%
silver and 10% copper. "Coins" of the same denominations minted since 1965 have
a copper core covered with a thin layer of nickel. Are these tokens counterfeit
coins? According to Irwin Schiff:

"Correctly understood, the U.S. government's coinage operation violates
Article 1, Section 8, of the U.S. Constitution. The Constitution empowered
Congress to "coin money," not to produce worthless tokens. The government's
coinage operation also violates Title 18, Section 1001, of the U.S. criminal
code which reads as follows: "Whoever, in any manner within the jurisdiction of
any department or agency of the United States knowingly and willfully falsifies,
conceals or covers up by any trick, scheme, or device a material fact or makes
any false, fictitious, or fraudulent statement or representations, or makes or
uses any false writing or document knowing the same to contain any false,
fictitious or fraudulent statement or entry shall be fined not more than $10,000
or imprisoned not more than five years or both. June 25, 1948, c. 645, 62 Stat.
749." Since the design, composition and structure of U.S. cupro-nickel coins is
nothing more than "a trick, scheme, or device" to conceal their true value,
character, and composition, all persons who have been and are now involved in
their authorization should be prosecuted under this statute."

"Bankruptcy" means settling with your creditors for less than you owe them.
It is a repudiation of your debts and financial obligations. On August 15, 1971
the U.S. government announced that it was "ending the dollar's convertibility,
closing the gold window, cutting the dollar's tie to gold, and allowing the
dollar to float." This was a declaration of bankruptcy, a repudiation of the
obligation of the U.S. government to redeem its paper IOUs for gold.

On December 18, 1971 the U.S. government raised the "official gold price"
from $35 to $38. This was a devaluation of 8.57%. Again, this was a declaration
of bankruptcy. On February 12, 1973 the "official gold price" was increased to
$42.22 - a devaluation of 10%. However, both of these devaluations were somewhat
strange. Because dollar convertibility into gold had been canceled on August 15,
1971, the new "official prices" of gold were "prices" at which the U.S.
government refused to sell gold!

Around 1976 Americans' right to own gold was restored, with the gold price at
about $180 an ounce. Currently the gold price is around $350 per ounce. This
means that during the past 60 years the U.S. dollar, in terms of gold, has been
devalued by 82.5%. Put in another way, only 17.5% of the dollar's value
remains.

THE EFFECTS OF THE SWINDLE

To make sense of the effects of the great money swindle we can use AIDS
(acquired immune deficiency syndrome) as an analogy. [See #TL09A: AIDS: Bad Science or
Hoax? for an alternative view of the nature of AIDS.] Money is to the
economy as blood is to the individual. The AIDS virus gets into the blood, but
for many years nobody realizes that anything is wrong. The politicians and
Federal Reserve bankers get into the money, but hardly anyone recognizes what
has happened. In both cases, for a long time there are no observable symptoms.
In the case of AIDS this is called stage one.

Then symptoms start to appear. The victim is afflicted with unusual
infections. Because the immune system has been considerably weakened, the body
struggles with an infection that a healthy body would handle with ease. The
illness can be severe, but eventually the victim recovers - in a fashion. This
is analogous to the Great Depression of the thirties. It is AIDS stage two.

Eventually the immune system becomes so weak that the patient cannot recover
after being struck by an infection. AIDS stage three. The U.S. economy may not
yet be in stage three. The current depression started around 1987. For every
sign of recovery there seems to be another sign of regression. And the
government "cooks the books" (like not counting as unemployed people who have
given up looking for work) to make it look better than it really is.

The economy, and particularly the U.S. dollar, has been raped by
AIDS-infected Federal Reserve bankers and politicians. To "rape" means "to seize
or take away by force; to despoil." "Rape" the noun means "an outrageous
violation."

In 1791 Thomas Jefferson said:
"If the American people ever allow the
banks to control issuance of their currency, first by inflation and then by
deflation, the banks and corporations that grow up around them will deprive the
people of all property until their children will wake up homeless on the
continent their fathers occupied."

To really cure the economy we need to get the Federal Reserve bankers and the
politicians out of our money. And that may be more difficult than getting the
AIDS virus out of the blood of its victims…

PRESIDENTIAL ASSASSINATIONS

President Abraham Lincoln was assassinated after issuing the Greenback, which
was a non-interest-bearing note. President James A. Garfield expressed his
concern about currency problems just before his assassination.

On June 4, 1963 President John F. Kennedy signed Executive Order 11110
providing him with the authority "to issue silver certificates against all
silver bullion, silver, or standard silver dollars in the Treasury not then held
for redemption of any outstanding silver certificates, and to coin standard
silver dollars and subsidiary silver currency for their redemption…" This seems
like an attempt to bypass the Federal Reserve System by issuing real,
silver-backed money to replace counterfeit Federal Reserve Notes. Kennedy was
assassinated on November 22, 1963.

There is a rumor that the "Kennedy silver certificates" were actually printed
and that one of the first things President Lyndon B. Johnson did after assuming
power was to have the "Kennedy silver certificates" destroyed. In 1964 Johnson,
serving as the voice of the Federal Reserve bankers, said, "Silver has become
too valuable to be used as money." This amounted to a brazen boast that the
bankers would eliminate any money with intrinsic value. On November 22, 1963,
the day of Kennedy's funeral, the first 50 million "no-promise" Federal Reserve
Notes were released into circulation. The symbolic celebration of the Federal
Reserve bankers?

Contents - Preface - Introduction - Bibliography - Home

Chapter: 1 - 2
- 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12

© Copyright 1992 Free America! Institute ALL RIGHTS
RESERVED
http://www.buildfreedom.com

Free World Order -- THE MOST COMPREHENSIVE
FREEDOM SITE ON THE NET! -- All information FREE!

Before leaving this site, please have a quick look
at the highlights below to appreciate the scope and value of
our information and activities:

Home
Page  -- Freedom Channels covering wide range of
aspects and levels of freedom (including
Superhealth)

Freedom / Liberty
Portal -- Gateway to thousands of freedom-oriented
websites -- Best place to start your freedom search

Paths
To Freedom -- How to use this website -- Explore all of
the paths and expand your freedom horizons -- Start using
Freedom Technology

Freedom Discussion
Lists -- Free World Order -- Advanced Freedom Solutions --
Financial Independence -- Upgrade Your Life --
etc.

Build Freedom
Books and Reports -- Applying Freedom Technology to
succeed in life -- Basic, Practical & Advanced
Freedom

Financial
Independence For Freedom Lovers -- Liberty Money Machines
-- Millionaire Reports -- Business Opportunities

Website
Design & Promotion -- Website hosting -- How to design
websites -- How to promote websites -- How to make websites
profitable

Make the FWO / BuildFreedom website the startup
page for your browser -- click
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why)