[miss_silver]

As for my income and how I make ends meet is none you your buisness, never was, never will be but i'll bet it made you feel good to type that down, no? Did it bring you pleasure? Did it made you feel superior today? did you grow an inch because of that bold statement?

And FFS, can't you even read from your own links?!?

Taken from Wiki aswell, a link from your link.

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States.

The Federal Reserve System is a quasi-governmental, decentralized central bank. It is composed of a central Board of Governors in Washington, D.C., twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous member banks and other entities (see below). Ben Bernanke serves as the current Chairman of the Board of Governors of the Federal Reserve.

The Federal Reserve System was created via the Federal Reserve Act of 1913 which "established a new central bank designed to add both flexibility and strength to the nation's financial system." The legislation provided for a system that included a number of regional Reserve Banks and a seven-member governing board. All national banks were required to join the system and other banks could join. The Reserve Banks opened for business in November 1914. Congress created Federal Reserve Notes to provide the nation with an elastic supply of currency. The notes were to be issued to Reserve Banks for subsequent transmittal to banking institutions in accordance with the needs of the public. It includes a system of eight to twelve regional reserve banks, owned by its commercial member banks and supervised by the Federal Reserve Board. The board and its chairman are appointed by the president and approved by the Senate.

I may not have a phd in economics but the way I understand "elastic supplies of currency" it means to loan money that they did not have themselves and print bills they can't back up with the equivalent amount of gold and silver. From your wiki link, I fell upon Federal reserve notes.

http://en.wikipedia.org/wiki/Federal_Reserve_Note

The value of a federal reserve note.

The authority of the Federal Reserve Banks to issue notes comes from the Federal Reserve Act of 1913. Legally, they are liabilities of the Federal Reserve Banks and obligations of the United States Government. Although not issued by the Treasury Department, Federal Reserve Notes carry the (engraved) signature of the Treasurer of the United States and the United States Secretary of the Treasury.


Federal Reserve Notes are fiat currency, which means that they are not redeemable in gold, silver or any other form of lawful money (even though U.S.C. 12,411 states "Federal Reserve Notes...shall be redeemed in lawful money on demand"). This has been the case since 1968. The notes have no value for themselves, but for what they will buy. They have no backing other than the "full faith and credit of the U.S. government" (i.e., the government's ability to levy taxes to pay its debts). In another sense, because they are legal tender, Federal Reserve Notes are "backed" by all the goods and services in the economy.

From what I understand of "Fiat Currency" is this. Money that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Granted that most currency around the world are backed by this system, it doesn't mean that yours is immune to loss of value, The loony today has never been that strong since 1980, why?. It now more widely known that the Federal reserve prints bills that they just can't back up and the more it prints "elastic currency" the more tighten the rubber band becomes and when stretched long enough, breaks.

Lincoln and Kennedy knew that and they tried, one to established a currency that can be backed up by silver and gold, the other one, tried to bring it back.

Abraham Lincoln's Monetary Policy, 1865

(Page 91 of Senate document 23.)

Money is the creature of law and the creation of the original issue of money should be maintained as the exclusive monopoly of national Government.

Money possesses no value to the State other than that given to it by circulation.

Capital has its proper place and is entitled to every protection. The wages of men should be recognised in the structure of and in the social order as more important than the wages of money.

No duty is more imperative for the Government than the duty it owes the People to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency, and commerce will be facilitated by cheap and safe exchanges.

The available supply of Gold and Silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use.

The monetary needs of increasing numbers of People advancing towards higher standards of living can and should be met by the Government. Such needs can be served by the issue of National Currency and Credit through the operation of a National Banking system .The circulation of a medium of exchange issued and backed by the Government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by Taxation, Redeposit, and otherwise. Government has the power to regulate the currency and creditof the Nation.

Government should stand behind its currency and credit and the Bank deposits of the Nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy.

Government possessing the power to create and issue currency and creditas money and enjoying the right to withdraw both currency and credit from circulation by Taxation and otherwise need not and should not borrow capital at interest as a means of financing Governmental work and public enterprise. The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of the consumers. The privilege of creating and issueing money is not only the supreme prerogative of Government, but it is the Governments greatest creative opportunity.

By the adoption of these principles the long felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprise, the maintenance of stable Government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own Government. Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power.

Now that sounds like an equal, fair economic system based of sound principle that if you can't pay for it, you can't buy it. That is why we see Iran switching to the euro exchange, it's fresh, it's strong and much more stable than the fiat US dollar. That is why Russia want's to install their own oil & gold currency exchange aswell, they know that the US dollar has been stretched too far and too thin compared to other world currency.

JFK knew this, this is why he signed Executive Order 11,110. He loved his country and knew of the danger of the Fiat Currency.

• John F. Kennedy
Executive Order 11110
June 4th, 1963

AMENDMENT OF EXECUTIVE ORDER NO. 10289 AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY

By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:

SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended --

(a) By adding at the end of paragraph 1 thereof the following subparagraph (j):

"(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption," and

(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.

SEC. 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

JOHN F. KENNEDY

THE WHITE HOUSE,
June 4, 1963

What does this means in layman's terms? Simply that JFK wanted to bring back the true economical system where the american dollar wouldn't be a fiat currency anymore but a well backed established dollar.

On June 4, 1963, a virtually unknown Presidential decree, Executive Order
11110, was signed with the authority to basically strip the Federal Reserve
Bank of its power to loan money to the United States Federal Government at
interest. With the stroke of a pen, President Kennedy declared that the
privately owned Federal Reserve Bank would soon be out of business. The
Christian Common Law Institute has exhaustively researched this matter
through the Federal Register and Library of Congress. We can now safely
conclude that this Executive Order has never been repealed, amended, or
superceded by any subsequent Executive Order. In simple terms, it is still
valid.

When President John Fitzgerald Kennedy - the author of Profiles in Courage -
signed this Order, it returned to the federal government, specifically the
Treasury Department, the Constitutional power to create and issue currency -
money - without going through the privately owned Federal Reserve Bank.
President Kennedy's Executive Order 11110 [the full text is displayed
further below] gave the Treasury Department the explicit authority:

"to issue silver certificates against any silver bullion, silver, or
standard silver dollars in the Treasury."

This means that for every ounce of silver in the U.S. Treasury's vault, the
government could introduce new money into circulation based on the silver
bullion physically held there. As a result, more than $4 billion in United
States Notes were brought into circulation in $2 and $5 denominations. $10
and $20 United States Notes were never circulated but were being printed by
the Treasury Department when Kennedy was assassinated. It appears obvious
that President Kennedy knew the Federal Reserve Notes being used as the
purported legal currency were contrary to the Constitution of the United
States of America. "United States Notes" were issued as an interest-free and
debt-free currency backed by silver reserves in the U.S.
Treasury.

RDixon said it best in this simple phrase.

The perceived power of the USA resides mainly in the dollar.

So true. When that dollar fails, nothing is there to back it up in exchange beside the goods and services of the american population.