The Fed And America’s Financial Reckoning Day

By Chuck Baldwin

07/22/2011

In a letter to President Thomas Jefferson in 1805, John Adams wrote, "All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, as much as downright ignorance of the nature of coin, credit, and circulation." Thomas Jefferson would later write, "I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity is but swindling futurity on a large scale." Jefferson would also warn, "We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude."

Today, our nation is sinking into bankruptcy, insolvency, and a serious financial reckoning day because our political class in Washington DC continues to load our posterity with perpetual debt and servitude. Most Americans are distressed, perplexed, and confused because of their "downright ignorance" of sound money principles enshrined in our US Constitution and the evils of central banking. In 1910, a secretive cabal of Wall Street and international bankers conspired to create the Federal Reserve System, which became our nation’s central bank in 1913. Our Founding Fathers were well acquainted with the evils of central banking (beginning with the Bank of England in 1694), and they diligently sought to enshrine hard money principles into our Constitution. In 1913, our national debt was $2.9 billion dollars and today it is $14.5 trillion dollars–an incomprehensible 400,000% increase! According to our US debt clock, our unfunded liabilities now exceed $115 trillion and each taxpayer is on the hook for over $1 million dollars!

Our present banking system was conceived in fraud and deceit by our modern money changers and corrupt politicians. Over 200 years ago James Madison wrote, "History shows that the money changers have used every form of abuse, intrigue, deceit and violent means possible to maintain control over governments by controlling the money and issuance of it." The Bible affirms that "the love of money is the root of all evil" (I Timothy 6:10), and we also read that when our Lord saw the "money changers" in the Temple, He drove them off with violence (John 2:13-15). Jesus knew how they were exploiting the people and He knew what He had to do about it.

Today, the only Republican presidential candidate who consistently speaks out against the money changers is Congressman Ron Paul who declares that we need to end the Fed! Yet, evangelical Christians, pastors and many in the Tea Party movement consistently support the puppet candidates who are beholden to the money changers and their control of our government. They may express concern about our national debts but they are not calling for the Fed to be abolished!

Currently, the Fed and US Treasury are facing an August 2nd deadline for the continued funding of our national debt and the need to raise our debt ceiling. Republicans have vowed to vote against this authorization (don’t count on it), which will cause a default of $23 billion in Social Security checks on August 3rd and $15 billion in bond interest payments on August 15th. Will the US default on its payments? Will the US become un-creditworthy?

The fact is we are already un-creditworthy and our creditors (foreigners like China) know it! Because of our reckless spending and printing money (called QE), rating agencies like Moody’s Investor Services and Fitch Ratings are threatening to downgrade US bonds to AA. In April of this year Standard & Poor’s (founded in 1860) downgraded all US debt to "negative" and both Germany and China have downgraded US bonds to AA from AAA with a "negative" outlook.

America is facing a dangerous tipping point unless we enact some serious fiscal and monetary reform. Already 46 out of 50 states have failed to meet their balanced budget deadlines for June of this year, and many like Illinois, Minnesota, Florida, California, Wisconsin, and Arizona are laying off workers and suspending essential services. As Margaret Thatcher famously said, "The problem with socialism is that you eventually run out of other people’s money." The states are broke! And, unlike the federal government, they cannot print money over at the Fed. Now we also learn that the federal government has drawn up plans for "a large-scale economic breakdown" in 2011 called "Unified Quest 2011." This year-long Army exercise is studying the implication of a collapse of the US dollar and bond market, maintaining "domestic order amid civil unrest" and "ways to deal with fragmented global power and drastically lowered budgets." If the US government and military is currently making contingency plans shouldn’t you be making plans? Shouldn’t your financial advisor also be helping you to be informed and prepared? You can learn more about this in this YouTube video.

In response to these developments several states are asserting their state sovereignty by adopting sound money legislation to declare gold and silver as legal tender. The US Constitution says that no state "shall coin money; emit bills of credit; [or] make anything but gold and silver coin a tender in payment of debts" (Art. 1, Sec. 10). The wording here is clear. As George Washington said, "Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice." Utah has become the first state to fully adopt sound money legislation in May, and others that are in the process of adopting this legislation include Minnesota, Iowa, Colorado, Georgia, Virginia, Tennessee, South Carolina, Montana, Missouri, Indiana, Idaho, New Hampshire, and Washington. In addition to supporting these bills, we also need to support The Free Competition in Currency Act (HR1098) introduced by Ron Paul to repeal US legal tender laws and remove taxation on gold and silver. A similar bill has been introduced in the Senate (SB500) by Senators Rand Paul, James DeMint, and Mike Lee.

Sir Thomas Gresham’s Law says that bad money drives out good money. Because we have allowed the Federal Reserve System to illegally and unconstitutionally act as the fiscal agent for the US government we are experiencing Gresham’s Law. Concerned investors and foreign nations are literally dumping US currency and assets and favoring gold and silver as a historic store of wealth and safety in uncertain times. If you are like me, you, too, are looking for a reliable and honest source for acquiring gold and silver, and maybe even a place to fund your retirement accounts into precious metals.

I am, therefore, proud to partner with my friends at IDP Consulting Group and Mass Metal (through their Silver Saver monthly program) and recommend them to my readers. I know these fellows personally. They are fine Christian patriots who truly understand what’s going on and have a heart to help their fellow patriots affordably obtain precious metals. Please use this link.

Thomas Jefferson has warned us that banking institutions are more dangerous to our freedom and liberty than standing armies. This truth holds true to this day and probably even more so. America is facing a reckoning day and to "reckon" means to "settle" and we cannot settle our assets against our liabilities. This cannot go on forever. For a thorough and detailed look at our current economic situation, I highly recommend that you obtain a copy of the brilliant book, ";America’s Financial Reckoning Day" written by my friend Chuck Coppes. This book has been on my recommending reading list for two years and has recently been revised with my endorsement. This is a must read. To order,

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