I have been spending a lot of time thinking about the Federal Reserve Bank and how it has adversely affected our country’s economy. I have seen too many people banding together and calling this out as a conspiracy with the evil intentions to enslave us. I don’t believe this is it at all. I think the story goes more like this: a long, long time ago, in a land not so far from where I sit, some men got together and decided that maybe one day another country might be able to find more gold than we had, so in the interest of remaining the leading world power, they introduced a new means of managing our monetary system and called it interest regulation. By this fancy new standard, we didn’t even need any physical value to back our money with (does anyone even remember the gold standard?).
The unfortunate thing is that without a physical standard of value to be held to, the interest can only grow. As interest grows, panic ensues and the people in charge of regulating the system, since they have only learned a certain way of doing things, they don’t really know how to keep it under control. So it comes to a flashpoint where the interest grows so rapidly that the physical market cannot keep up with it and the men start to grab at straws to try and figure out how to keep the fire from spreading. These men aren’t inherently evil, nor do they enter their careers with the intention of harming others, but once the spark begins to catch, they don’t know how to smother the fire because there is no physical value to try to regulate the numbers back to.
The second part of this problem is that without physical value to our money (such as the gold standard), the only value that we can truly place on our money is a promise that any debt held by our money will be paid back. If a man doesn’t possess an item of value to pay back his debts with, the only other way to pay that debt is through his own physical labor. You see how this works now? Let me try to explain this a little further…
When our country needs, let’s say, 1 million dollars to purchase services for the public, it goes to the Federal Reserve Bank. The Fed then sells the government the cash in exchange for bonds that are basically just promises to pay back that million dollars with ‘X’ amount of interest attached to it. Since the promise to pay back the million dollars isn’t held in value by actual gold that we own, we continue to keep purchasing our money from the Fed without any means to regulate how we can actually pay back that money or the interest that accumulates with it. So we are only left with a huge ‘I owe you’. Now, as this cycle continues to run out of control, this debt that we accumulate keeps skyrocketing well beyond the value of what our country actually owns in physical goods, so what will be left to pay it back? That’s right – services. Or as some of you have already figured out – physical labor.
This is why the interest regulation system was a flawed system to begin with and why we have to reel it in and return to the gold standard, silver standard or whatever physical standard we possess as a means to pay back what we owe without basing that on promises of our own physical labor because if we do not have something to give other than our labor, the person we owe that labor too then owns us for the time it will take to pay back that debt. If that debt is so high that we can never pay it back, then we have already promised the labor of our children, too. That, my friend, is enslavement. We have to stop this. It isn’t Obama’s fault, it isn’t the Federal Reserve Bank’s fault and it isn’t a conspiracy. It’s simply a flawed system and the people in charge are scrambling to figure out how to control it. Unfortunately, though, it’s become a wildfire. We can control it if we wish, but we have to get our fellow Americans to realize what has happened and understand that, yes, we may need to put in a little work and budget ourselves better, but, really, we have to return to the gold standard or we are doomed. The rest of the world sees it already and trust me – they will smile on the day that the mighty USA has to chain their children to sewing machines to make the embroidered handkerchiefs that they will blow their noses into. What comes around goes around, right? I think not. I think as long as we make sure we never borrow more than we can pay back, we will never have to worry about owing others our sweat.