Inflation 101 – The Federal Reserve System and What 1913 Means to You

Picture of the Morgan Silver Dollar
(Photo credit: Wikipedia)

Once upon a time in America, gold and silver were used as currency. There was also a lot of bartering: “I’ll trade you 2 loaves of bread for a chicken” type-stuff.

It is difficult to carry around large quantities of gold or silver. So paper money was invented to be used as a substitute for gold or silver that was sitting in a safe place/bank/Ft. Knox.

So if you had a Dollar “Note” there was a corresponding amount of gold/silver somewhere. The paper did not have value of itself; it represented the money/value that the government/bank had on hand.

A Silver Dollar in 1912 had a value of — wait for it — one dollar.

That same Silver Dollar today, based on the silver itself is approximately $21. (Yes, there are numismatic values on coins, that’s a different story.)

In 1913, The Federal Reserve was created. It is not a part of the federal government. Just because it uses the word “federal” – don’t be fooled. It is run by a bunch of bankers.

[Whew, I’m really working hard to keep this G-rated.]

Chuck Baldwin puts it this way:

December 23, 1913

This is the date when the Federal Reserve Act was passed. This Act placed oversight of America’s financial matters into the hands of a cabal of private international bankers, who have completely destroyed the constitutional principles of sound money and (for the most part) free enterprise. No longer would the marketplace (private consumption, thrift, growth, etc.) be the determinant of the US economy (which is what freedom is all about), but now a private, unaccountable international banking cartel would have total power and authority to micromanage (for their own private, parochial purposes) America’s financial sector. Virtually every recession, depression, and downturn (including the one we are now experiencing) has been the direct result of the Fed’s manipulation of the market. 1913 was not a good year for the United States.

At this point, I HIGHLY recommend that you take the time to watch Aaron Russo‘s America: From Freedom to Fascism

which you can see by clicking HERE

It’s well worth the hour and a half investment in your life.

This film discusses Income Tax, the Federal Reserve Act, and oh, the Bankers.

15 thoughts on “Inflation 101 – The Federal Reserve System and What 1913 Means to You

      1. You’re probably right, but like a lot of terms relating to government and current events (The Patriot Act; Free Trade; Estate Tax; Right-to-Work Laws; etc.), QE sounds more simple (and nicer) than perhaps it truly is.

        The job of those who know is to try to teach at least someone about what QE, or any other such term, really means, and then mobilize accordingly.

        Again: I enjoyed your post.


        1. Are you involved with Campaign for Liberty at all?
          There are some groups out there trying to educate and DO things. I met some great people who are involved in working on those exact issues that you mentioned. (and Agenda 21 and let’s not forget Common Core…)
          Thanks for stopping by my blog and commenting!
          As you already know, the titles of these things (Patriot Act is a great example) –the titles are the exact opposite of what they are about!


    1. Prophetic, I think you will get a lot out of the movie.
      In 2007, a bunch of us hung out on the eve of April 15 and handed out dvds of this movie free of charge to people coming out of the post office.
      A black SUV drove up and took our pictures. 😉


  1. I think we’d all be better off swapping those chickens. Banks and bankers are responsible for a great deal of misery in this world. Here in the UK they mess up again and again and then award themselves huge bonuses while the rest of us struggle to pay our bills. All the while our money isn’t really worth the paper it’s written on. We seem to be fast approaching the taking a wheelbarrow full of notes to the shop stage and their best answer is print more! Grrr. As for you being on a list somewhere I wouldn’t worry. I’m probably on several, mainly because I’m not very good at keeping my mouth shut 🙂


    1. LOL Marie, I’m not worried 😉 Whatever will be, will be.
      Yes, when I see those pictures of the wheelbarrows with money taken in German circa 1924, I think we are not too far from that.
      I’m all in favor of swapping chickens. Forget the Democrats and Republicans, let’s have a Swapping Chickens Party. ha!


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