Who Owns the Money?  And Is a Constitutional Currency Possible?


By Paul Dowling

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”  —Henry Ford

“Federal Reserve notes are not redeemable in gold, silver, or any other commodity.  Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: ‘The said [Federal Reserve] notes shall be obligations of the United States. . . .  They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.’ Federal Reserve notes have not been redeemable in silver since the 1960s.  The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts into circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.”  —The Federal Reserve, in answer to its website FAQ: Is U.S. currency still backed by gold? (https://www.federalreserve.gov/faqs/currency_12770.htm)

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“Congress shall have Power. . . To coin Money, regulate the Value thereof, and of foreign Coin. . . .”  —Article I, Section 8, Clause Five, of the US Constitution

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A Few Words about the Fed: It Is a Private Business, Not a Neutral Organ of the US Treasury

Who Owns the Money? Well, first of all, the Federal Reserve is, contrary to popular belief, not a part of the US government at all.  It is a private business whose shareholders are commercial banks. It is often referred to as the “bankers’ bank.” Not unlike other corporations, it serves the interests of its shareholders first and foremost, before considering the needs of American citizens, thereby putting Americans at the end of the line in its consideration of matters.  Indeed, “America Last” may very well serve as the Fed’s motto in most instances where the Fed must make business decisions that run counter to the interests of the American people. So, who comes first? The family that owns most of the controlling stock in the Fed is the House of Rothschild.

The use of the word “Federal” in the name of the bank is, therefore, a genuine misnomer.  In an era when people are getting used to the fact that much of what is being passed off as truth is really fake news, it should surprise no one that the Federal Reserve’s website says this (https://www.federalreserve.gov/aboutthefed.htm): “The Federal Reserve System is the central bank of the United States.  It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.”  But the Federal Reserve does not really serve “the public interest.” The Fed’s intentional sabotage of the Trump Economic Boom by its recurrent and inappropriate raising of interest rates is an act of outright economic warfare against President Trump’s America First agenda, the economic priorities supported by the majority of voters in the 30 states that elected Donald Trump president.  The Fed’s struggle against the economic good of the United States only goes to show how the Fed is guided by the interests of globalist bankers and banking families, which is a very different set of priorities than what most American citizens would choose in line with their own nationalistic or patriotic set of priorities. Most Americans are in agreement with President Trump’s statement that “[w]e reject the ideology of globalism, and we embrace the doctrine of patriotism.”

So, the Question Is This: “Who Owns the Money?”

I recently found myself standing in line at a car rental place, after midnight, near LAX in Los Angeles.  There were easily over 150 weary souls milling around, and the line continued to grow, due to computer problems and a short-handed staff.  Tired people are sometimes interesting to strike up conversations with, since they are likely to offer a degree of candidness in their remarks that may be hard to come by under normal circumstances.  The man next to me was a New York banker, so I posed to him this well-worn question: “Who owns the money?”

The banker was somewhat startled by the question.  He said that he had to think about it. So, as food for thought, I asked him this one: “What happens to the Federal Reserve Note, if the US Treasury begins printing money backed by gold—call them United States Notes—and circulating this currency?”  Without batting an eyelash, the banker responded, “Why, that would absolutely destroy the Fed, since the Fed-issued currency is fiat currency!”

“So, if the US government owns gold in the name of the people [and President Trump and the Q Team say that the US does own gold, per Q-drop 2619], then who would the money backed by that gold belong to?”  The banker answered that such money would belong to America’s citizenry.

Debt & the Promise to Pay

My next question was this: “Is it true that money is created when I go into the bank and borrow $1,000, since the bank then creates a debt on its books for $1,000 that it now owns as debt?  In other words, does owning such a debt, along with my promise to pay that debt, in effect create money for the bank?” The answer was yes. “And the money I will be given, on loan, will have been printed on a printing press (or virtually, as electronic money)—unbacked by gold or silver or by anything outside of my promise to pay?”  The banker said that my characterization of the situation was correct, since the Federal Reserve Note we currently use is nothing more than fiat currency, created by the Fed and issued to the lending bank upon the bank’s own promise to pay back the Fed. My loan request can be granted, because the bank can transfer my promise to pay to the Fed in the form of its own promise, ultimately creating the issuance of currency that is backed by nothing.  When the loan is repaid with interest, the money used will be Federal Reserve Notes I have put into my bank account that are themselves based upon nothing more than promises to pay debts.

“And who created this system of fiat currency?”  I asked. “The central bankers did,” was his reply.  “At the Fed, the International Monetary Fund, the World Bank, the Bank for International Settlements. . . .  And, as long as governments are using the central bankers’ system, and are borrowing money from the central banks, the central banks are in good shape, because what the central banks actually own is debt—and it is this debt that is the real money; it is debt that creates wealth, under a debt-ownership system that depends on the promise to pay.”

“So, I suppose that begs the question: How many dollars in circulation today only exist because somebody, somewhere, borrowed money?  How much of our economy is based solely on the creation of debt?” The banker said, “I haven’t really had to think about that before, but while gold may have been needed initially to get the ball rolling for the central banks—centuries ago now—I suppose it is really no longer needed to keep the ball rolling, especially with the use of fractional banking (which is a whole other issue)!  It might not be too extreme, then, to say that pretty much the whole of our economy is now based upon money that is created out of thin air when borrowers take out loans, that the dollars put into circulation by the Fed have all come into existence either because somebody, somewhere, has borrowed those dollars, or else the US government has given the Fed collateral in the form of treasury notes equaling the value of the dollars created.  Technically speaking, I suppose this would mean that the entire economy is founded on debt, the ownership of which ultimately leads back to the central banks.”

“So a better question than ‘who owns the money?’ might be, ‘who owns the debt?’ since it would appear that they are both, in a sense, synonymous.”  Here the banker then asked me if I was an economist of the Austrian School, to which I replied that, while I held no degree in economics, I did believe in that school of economic thought.  (The Austrian School of Economics is a way of thinking in which the main principle is that economics should be guided by the planning and actions of individuals pursuing their own best interests.)

Debt Owners & Debt Slaves

I continued with this line of reasoning regarding debt: “So, we might say that, since the economy is largely based upon debt, and the owners of the central banks—mainly the Rothschilds and their ilk—own the greatest portion of this debt, then the central bankers own, by far, the largest part of the world’s wealth and are definitely acting as the source of it; everyone else who owns money is dependent upon their system—which means that everyone else is, in essence, a debt-slave to the central bankers, with no independent wealth of their own.”  The banker responded in the affirmative, saying, “True, and the central bankers can use their money to buy real estate, precious metals, and other tangible commodities that retain value, before inflating the currency to a level that would destroy everyone else’s money-based wealth, impoverishing them. This would also serve to put more real property and commodities into their hands, for next to nothing, since bankrupt people tend to sell off their real estate and precious metals at bargain prices, or forfeit it altogether, when they become impoverished. ”

So, who owns the money?  Whoever owns the debt, under a fiat system, ultimately owns and controls the money.  If, however, Constitutional money were to be created today, in the United States, then there would exist a medium of exchange, belonging to the people, based upon real value and no longer dependent upon debt.  Debt-slavery no more!

President Trump & the People’s Money

Thus, if President Trump does begin to print United States Notes, backed by gold, he could effectively destroy the economy of debt-dependency and replace it with a people’s economy based upon, or backed by, real value in the form of gold.  (Even silver would do, if the president decided that silver might be a wiser choice.) How might an economy independent of debt for its wealth creation change things? People would truly own the products of their labor, since they would be receiving gold (or money backed by gold) in payment for that labor. And the creation of that wealth would not be dependent upon someone else’s having taken out a loan to pay for it.

All of this would mean that no person in the economy would have to borrow money (and alternatively no treasury certificates would have to be issued as collateral for money created) in order for another person to be able to earn money.  This means that the wealth of every individual—and therefore of the entire nation—would be free to grow without piling up overwhelming amounts of debt. Countries would be free to act in accordance with their people’s desires, rather than having to serve the wishes of the central bankers; and elected representatives would be free to act in the interests of their voters, rather than in the interests of the nation’s debt-holders.

Nationalism Brings Financial Freedom, While “One World” Bestows One Giant Pile of Debt

This is why nationalist governments, run by patriots, are able to make their people rich and free, while globalist governments cannot; for globalist government only operates an economy based upon debt that is held by the globalist bankers—bankers who become super-wealthy by working towards the erasure of borders and of national sovereignty altogether.  (Think of the European Union as a model.) One World means, ultimately, one currency—and one giant pile of debt, owed by the many to the few. It is a prescription for the enslavement of the many debtors to the relative few owners of all the debt. The only alternative to ultimate enslavement is to bring down the Fed and, eventually, the entire central banking system.  And it seems more than likely that President Donald Trump, with his policy of “America First,” just might be the right man to accomplish the goal, not only nationally but globally as well. Even now, French patriots wearing yellow vests appear to be revolting against the status quo in France; many appear to want a Trump-like policy of France First, and they want Macron, himself an erstwhile Rothschild banker (https://newspunch.com/macron-rothschild-pedophile/), out of government!

The Sacred Duty of Government

It must be remembered, by all who love freedom, that there is no duty that is more sacred for a nation’s government to fulfill—aside from the physical safety and protection of its citizenry—than that of guaranteeing a uniform currency that will guard the value of the people’s labor, without seeing it diminish over the years (due to inflation) to the point where people are unable to plan for the future with the money they have saved, based upon what that money is worth today.  Inflation of the money supply is nothing less than a form of backdoor taxation-without-representation, making people work longer to pay for the same goods and services, while forcing them into higher tax brackets for earning wages that have become numerically higher. The upshot of it all is this: A worker who is earning more money, under an inflationary economic policy, is, with regard to actual buying power, not realizing any actual gain; at the same time, that worker is paying a higher percentage of income in taxes, even while getting less value for the same work.  A stable currency can only be possible when a system of integrity, under the control of the people, has been established and continues to operate upon rules that guarantee the maintenance of value in the money being earned as take-home pay. Perhaps the day when a people’s economy might be established is closer than most people think.

Who Is Paul Dowling?

Paul Dowling is an American patriot who believes that individual freedom and minority rights that only a republic can protect are the linchpin of Western Civilization.  Paul has written a book on the Constitution, explaining the republican values on which it is based and how they protect against the dangers of a strictly majoritarian system of governance.  The book is called Keeping a Free Republic: Learning the Blueprint for Liberty in the Constitution & the Bill of Rights. (It is on sale at Amazon, for $6.25 in paperback and $0.99 as a Kindle download: https://www.amazon.com/Keeping-Free-Republic-Blueprint-Constitution/dp/1724679082/ref=sr_1_1_twi_pap_2?ie=UTF8&qid=1536890421&sr=8-1&keywords=keeping+a+free+republic.)

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