Like so many
others, I have a great deal of respect for what you have accomplished
in your life. You are the epitome of the American Dream; rising
from a troubled childhood to the heights of international celebrity.
While you and I may not agree on many political issues, I believe
that you are sincere in your concern for the future of the American
think you miss the mark with your support of the Fair Tax. Yes,
the current federal income tax system is immoral, invasive, and
represents a form of slavery (resting on the premise that individuals
are not entitled to the fruit of their labor), but eliminating one
tax and replacing it with another is never a good idea.
have bigger fish to fry. While taxes are certainly an important
issue, it is not the taxes we see that are our greatest worry at
this point. The tax we should be concerned about is the one that
we don't see.
As long as
the Federal Reserve System retains the monopoly power to issue currency,
it really doesn't matter what the tax system is. Theoretically,
the Fed can print all the money the government needs and we will
be taxed through the loss of purchasing power of the dollar. This
is going to become more and more evident as the federal government
grows to unprecedented proportions. The crisis that we are witnessing
now pales when compared to the unfunded liabilities of Social Security
and Medicare. The only way for the government to deal with them
is to inflate the debt away.
The Fed is
an unconstitutional institution. According to Article 1, Section
8, Clause 5 of the U.S. Constitution, Congress is empowered to "coin
money and regulate the value thereof." In 1913, Congress delegated
that authority to the Fed. This action in itself is questionable
as it would seem that a constitutional amendment would be required
for Congress to delegate authority with which it is specifically
however, is even bigger than that. It is no accident that these
powers were included in a clause which grants Congress the authority
to "fix the standard of weights and measures." That is
because the dollar itself is not money; it is a measure of money.
Money, according to the Framers, was gold and silver. Congress is
simply empowered to standardize the dollar as a measure of precious
metal – traditionally, 1/20 of an ounce of gold.
In other words,
the Constitution does not grant Congress the power to create money
or to regulate the value of the dollar by manipulating the money
supply. The power which the Fed claims to posses under congressional
mandate – the power to create money – never existed in the first place.
As Thomas Jefferson
predicted, the Fed's monopoly on the issuance of currency is enslaving
America. Most insidiously of all, we are being enslaved with our
own productivity. The law
has been perverted into an instrument of plunder. All these
bailouts are really reverse wealth redistribution as taxpayer money
is lavished on political capitalists.
In addition, the Fed is backstopping trillions of dollars of losses
in the commercial banking sector. Where are the Fed and the government
getting all this money? What the government cannot expropriate or
borrow will be created out of thin air by the Fed, expanding the
money supply and ultimately causing price inflation.
most pernicious tax of all. It destroys savings by devaluing the
monetary unit. It distorts the price signals on which entrepreneurs
rely to make decisions about how best to meet customer demand, choking
the economy with waste and inefficiencies. It punishes the poor
since they receive the new money only after prices have already
risen, if they receive the new money at all. And worst of all, very
few realize who is to blame for these problems.
the politician's best friend. It allows him to promise his constituents
all sorts of goodies seemingly for free. When the bill comes due
in the form of higher prices, the politician can blame greedy businessmen
or OPEC sheiks. In reality, the trail leads back to the government
Some will say
that the Fed is an independent agency and is therefore not subject
to political caprice. Balderdash. The Fed works closely with the
President to implement monetary policy. In addition, the folks at
the Fed are people just like you and me. Who wants to take the blame
when the economy takes a downturn as it inevitably will if the Fed
contracts the money supply? Why not just keep the printing presses
cranking and let your successor deal with the consequences? That
is what Alan Greenspan did and he was heralded as a god; don't you
think that that may have gone to his head?
with central banking is not whether the central bank is run by private
interests or the government. The problem is that it is controlled
by people, people who answer to political pressure and not market
forces. For this reason (as well as many others), central planning
never works. The Fed – America's central bank – is simply central
planning under a different name.
only way for the American people to restore their freedom is to
take back control over their money. We must eliminate legal tender
laws and break the Fed's monopoly on currency. If the government
is going to be involved in monetary affairs at all, we must reinstate
a gold standard in order to limit its ability to inflate.
have never backed down from a fight, and this fight will be an epic.
The people who think that they run this country are not just going
to give up. Just like Nicholas
Biddle, they will do everything possible to stay in power, even
threatening to destroy the economy. The truth is that the economy
is being destroyed right now and the only way to save it is to allow
the free market to work.
There is a
movement in America which, although it is still in its nascent stages,
is causing the Establishment to tremble. It is a movement which
promises to smash the shackles of the central bank and liberate
Americans from the clutches of power-mad politicians and their corporate
about the Fair Tax and add your voice to our battle cry.
END THE FED!!