As some may know America lost any and all control over the banking system in 1913 at a meeting on Jeckyl Island. See “Secrets of the Federal Reserve” by Eustace Mullins.
Accordingly to the Constitution,
Section. 10.
Clause 1: No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
But we create money by fiat,
Fractional Currency as Fiat Currency
In order to have a single unit of account and standard of legal tender, for payments large and small, it is necessary to fix the legal tender value of each denomination of coin. However, coins made of different metals, such as gold, silver and bronze (copper alloy), have an economic value that depends on the market prices of the various metals in terms of each other. In order to fix the legal tender values of coins of different metals, under a gold standard the silver and bronze coins are deliberately over-valued as legal tender, but also limited in the quantity that is legal tender for any one payment. For example the English silver and bronze currency were overvalued by about 10% and 300% respectively as legal tender compared to the gold currency, but were only legal tender for 40 shillings and one shilling respectively. For this reason the over-valued fractional currency was referred to as token currency, because its economic value was less than its legal tender value. Debtors, however, had to accept it at legal tender value by government fiat (albeit in limited quantities).
Central Bank Notes as Fiat Currency
With the establishment of government owned or sponsored central banks, many governments made central bank notes unlimited legal tender, in addition to gold (or silver) coin, by government fiat. This is the most common use of the term fiat currency. Typically, fiat currencies have driven out the principal metallic legal tender currency via central bank default, leading to hoarding, melting or export of gold (and/or silver) coins. This breaks down a gold standard (or silver standard or bimetallic standard) and leaves a pure fiat currency, however under the gold bullion exchange standard, the currency may still be technically redeemable. Following the breakdown of the Bretton Woods Gold Bullion Exchange Standard with the default of the US Federal Government in 1971, fiat currencies became entirely irredeemable.
As of 2004, most currencies in the world are fiat monies. However, the situation with major currencies, such as the euro, the United States dollar and the Swiss franc is more complex.
Debate over the term
What exactly is a "fiat" currency is a matter of some debate, with a spectrum of opinion that runs from hard money advocates which declare that anything other than a one to one currency basis is "fiat money", to a range of economic theories which hold that market dynamics enforce fiscal discipline. In general, ultra-conservatives define fiat money stringently, and an opposition to fiat money is coupled with an opposition to fractional reserve banking and governments having a central bank. Advocates of "debt-free money" argue, in contrast, that money which requires the issuing of central bank debt is a burden on the public. In essence, just as there is a school of thought which opposes any money which is not linked to specific, countable, and measurable reserves, there is a school of thought which denies the value of any encumbrance on the government's ability to issue notes at all.
How else can America continue to function with the debt and deficit that we have. As long as the banking cartel smiles on America we will continue. And by the way, all this talk about a “Fair Tax” (what an oxy-maroon) will not change a thing.
The “FED” as it is commonly refered to, is privately owned by an exclusive cadre of some of the most wealthy and influential individuals in the world. The FED is part of an international banking cartel and is in no way part of our Federal Government. It’s purpose is to fleece the American people by stealing our wealth under the pretext of “government-regulated central banking system” that calls itself “Federal”.
A Federal Reserve note is merely an IOU. When you go to the neighborhood bank the “money” that is loaned is created out of thin air. With nothing more than a book entry. The money supply is made up of book entries, some 97% of it. Only 3% is actual coin and paper money. Without a continuous and exponentially increasing cycle of borrowing, debt and refinancing the entire system would collapse.
And by the way, all this talk about a “Fair Tax” (what an oxy-maroon) will not change a thing. It is mathematically impossible to pay of the national debt.et el.
Absolutely, 100% CORRECT!!! Did you read the Griffin book? It says the same thing but in much more depth...well obviously more than you can put in a post. But I highly recommend the book.