Money FAQ

What Every American Citizen Should Know About Money

What is the definition A dollar is a unit of measurement, much like a pound, a
What is fiat currency?
Fiat currency is currency that has no intrinsic value. It has
What is a money note?
A money note has a due date, amount of interest and place for
What is the intrinsic value of It has none. It isn't even worth the 3 cents it took to print
Is the Federal Reserve Act Constitutional? Yes, according to Article I, Section 8, Clause 17, if the jurisdiction
What is the money of account in There is no official money of account in your State. Federal Reserve
What is the backing behind the Federal United States Credit.

What makes Federal Reserve Notes Nothing but your mind, your future labor and productive capacity,
Who owns Federal Reserve Notes? The privately owned Federal Reserve Banks. They are printed for
What is fractional reserve banking? Fractional reserve banking is the practice that allows all banks
Here is a simple analogy. Say you have a classic Ford Mustang
You agree, and we part company. I now own the car, but it's still
Now you get an idea. Since I only come by on the third weekend
But trouble lurks. Eventually I build my garage and ask to have
If that analogy sounds farcical, fictional, or nonsensical, it
Nonetheless, this fraud would become readily apparent if there
Should we the people own money? Yes, we should have money that we have title to, not money that
That is what the founding fathers of this country believed and
"If the American people ever allow private banks to control
Who controls the economy of our country? The Federal Reserve Banks.

When was the Federal Reserve Act enacted In 1913.

When was the graduated Income Tax In 1913. Not a coincidence that is the same year that the Federal
Are income taxes related to the Yes, income taxes are needed to pay the interest on the money
How are they related?
The current monetary system could not survive without the tax
The only lasting solution is a return to a sound money system
Can debts be paid with Federal No, debts cannot be paid in fiat currency. They can only be discharged;
Should the Federal Reserve Act be Yes, it should be abolished. The system is not sustainable. In of a dollar?
foot, or a mile. Specifically, the dollar is a unit of weight. It's defined as 24.75 grains of pure gold or 371.25 grains of pure silver in the U.S. Coinage Act of 1792.
no backing and would be entirely worthless, except for the fact that people have been persuaded to use and accept it as if it had worth.
redemption.
a given Federal Reserve Note?
the thing. Federal Reserve Notes are mere tokens representing a share of debt.

of the Federal Reserve is limited to Washington, D.C. However, if the Federal Reserve is allowed to operate within the 50 States, the answer is no!
your State and does it comply with the State Constitution?
Notes have usurped State-issued lawful money and today there is no State-issued alternative to using the debt-based Federal Reserve Note.
Reserve Note?
valuable?
and the misguided faith of the masses in the banking system.

a cost around 3 cents per bill, regardless of denomination, and then lent into circulation to be repaid at full face value, plus interest. That is where our national debt comes from.

under the Federal Reserve system to operate on a fraction of the depositors' assets. This is usually five to 10 percent but lately is closer to zero. In other words, banks create money (credit) from thin air, by making an electronic entry into an accounting database, and lending it out at interest. This is how the vast majority of the $60 billion that commercial banks made in profit, is made.
you wish to sell, and you list it in the newspaper classifieds. Say I come by and purchase it from you for $5,000. I explain to you that I don't really have a place to keep the car, and so I'd like to keep it in your garage until I can build one of my own sometime later on.
in your garage. I come by about one weekend a month to take the car out for a spin, and everything is fine.
of every month, you could "sell" the car again to someone else, as long as that other person agrees only to drive it on the first or second weekend of each month. You find another buyer and "sell" the car to her for another $5,000. You give her a fancy-looking title to the car that you created with a computer and a color laser printer. For a year or so, no problem! She drives the car on the first weekend, you clean it up on the second, and I drive it on the third. You've doubled your money, and no one is the wiser.
my car permanently. Now you have a problem. You've sold one asset two times, issuing two identical, official-looking titles, and now face a "run" - more than one owner wants the asset.
is because no private citizen would ever consider running a scheme like the above. Anyone caught doing it would be thrown in jail. However, that is exactly what the U.S. Federal Reserve banking system has done and is doing. Your deposits in your bank account do not actually belong to you, and they might not be available if you try to withdraw them! Fractional reserve banks operate on the assumption that everyone will not want their deposits back all at the same time.
were ever a run on the banks. If all depositors were to withdraw just 10% of their deposits, the banks would have to close their doors! Even worse, if only 3% of the public withdrew their deposits entirely, we could have a situation on our hands to dwarf the Great Depression.

is under the control of banks.
wrote in no uncertain terms. Thomas Jefferson wrote in 1802 in a letter to the Secretary of the Treasury at the time, Albert Gallatin:
the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

by Congress?
enacted?
Reserve Act was passed.
monetary system?
that is owed to the Federal Reserve Bank. Currently almost 50% of income taxes goes to pay the interest on the Federal debt, and the percentage is rising precipitously.
money. The debt that backs our currency is created for and pays interest. The Federal Reserve issues more currency every year, hence more debt is entered onto the books. The interest payments continue to grow. The more money issued to pay the interest, the more debt is created. The entire system is a spiral that has only one possible outcome - monetary collapse.
100% backed by precious metals. The Liberty Dollar is such a solution.
Reserve Notes?
that is, passed on to someone else.
abolished?
fact, if things continue in the direction they are going, the GAO's current estimates predict that this generation will face a tax rate of over 85% within their lifetime, simply to pay the interest on the ever ballooning national debt.