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The Federal Reserve Bank is the Reason for America's Downfall

Politics / Fiat Currency Dec 22, 2008 - 12:34 PM GMT

By: Darryl_R_Schoon


Best Financial Markets Analysis ArticleThe American Dream, An Obituary - The American Revolution was an extraordinary event. The idea that freedom was an inherent right, that tyranny could be successfully opposed, that government could serve the people, not the few, was truly revolutionary in 1776—as it is today.

The American Revolution, however, has run its course; and unless resuscitated and given new life, the American dream and the dreams of America 's founding fathers will soon be only a memory. Dreams rarely come to pass and those that do rarely last. The American dream is no exception.

What happened in 1776 has been subverted by the passage of time and the inconstancy of later generations. Those who rule America today have subverted the principles enumerated in the US Constitution; principles the Founding Father hoped would guide those who followed them through the crises yet to come.

The principles were not many, e.g. fiscal prudence, sound money, separation of church and state and a limited military and limited government. But even those few and clearly stated principles succumbed over the years to the imposition of policies that had given rise to the need to revolt in 1776.

Now, in 2008, tyranny and government excesses are again upon America , but this time it is by America 's own hand. The policies of King George III were no more egregious than the policies of President George Bush II.— taxation without real representation, e.g. TARP (80 % Americans opposed), the imposition of policies contrary to the will of the people, e.g. US presence in Iraq and Afghanistan (70 % opposed), and the loss of individual freedoms under the Patriot Act (60 % opposed).

The difference between 1776 and 2008 is that America is now tyrannized not by the King of England but by its own government. Today, the US government does not represent the will of the people. It represents instead the special interests that control the US government through the buying of votes— America is not for sale only because it has already been sold.

The difference between 1776 and 2008 is not only 232 years. It is the difference between the dream of the Founding Fathers and the shadow of that dream in whose increasing darkness Americans now exist.



Thomas Jefferson warned 200 hundred years ago that if private bankers were allowed to issue America 's money, indebtedness, foreclosure and suffering would follow. Yet, in 1913, private bankers gained control over America 's money by the passage of the Federal Reserve Act.

We are now suffering for ignoring Jefferson 's warnings. Jefferson was right in predicting our problems but his words were overridden by those who had other plans for America , plans that would increase their profits at the expense of the nation.

It is no accident America is now an empty shell of the great economic power it once was. Bled dry by debt imposed by those whose sole intent was to profit, the US is now bankrupt at a time it desperately needs the resources it no longer has.

The US Treasury is now empty except for IOUs and only if others continue to buy America 's debts can America continue to go forward. Once we were creditors, now we are debtors. America cannot escape the consequences of what has been done but we can limit our problems if we undo their cause.

The Federal Reserve Act was enacted by Congress and signed into law by President Woodrow Wilson who later bitterly regretted what he had done to America .

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.

Woodrow Wilson , US President

The power of the Federal Reserve System—a system controlled by a small group of dominant men —derives solely from is power to issue debt-based money in the form of US dollars and to charge interest on their issuance. We are paying our jailors for our enslavement and are fools for so doing. Who would have thought—except Jefferson .


This article is being posted from Paris , France ; a city and nation that supported America 's War of Independence against England . Over time, Americans have forgotten this important fact.

Following the Declaration of Independence of the thirteen colonies, the American Revolution had been well received in France, both by the population and the enlightened elites. The Revolution was perceived as the incarnation of the Enlightenment Spirit against the "English tyranny". Benjamin Franklin, dispatched to France in December of 1776 to rally her support, was welcomed with enthusiasm, and numerous Frenchmen embarked for the Americas to help the war, motivated by the prospect of valor in battle or animated by the sincere ideal of liberty and republicanism, like Pierre Charles L'Enfant, and La Fayette, who enlisted in 1776.

In the last two centuries, Americans have come to identify more with England (perhaps a cultural variant of the Stockhausen syndrome) than with its first ally, France—the lure of a good Burburry overcoming its love for the great cloak of freedom. Unfortunately, Americans have forgotten their history and what they haven't forgotten they have now reinvented.

Freedom is always fragile and is always under attack from those who would enslave others for their own ends, including profit; and, the present crisis is as threatening to America as was the crisis of 1776.

Now, as then, the cause of America 's problem is English in origin. But this time the cause is England 's central banking system, recreated on our own shores as the Federal Reserve Bank, a private central bank masquerading as a US Federal government institution.

But America does not own or control the Federal Reserve Bank. The Federal Reserve Bank is owned and controlled by a small group of dominant men — private bankers who through their control of the Federal Reserve now control America .



Gold is freedom because gold is the antidote to the debt-based money of private bankers issued by central banks such as the Federal Reserve, debt-based money that has been destroying America 's wealth, savings, and productivity for almost one hundred years.

Since the Federal Reserve began issuing debt-based US dollars 95 years ago, the US dollar has lost 95 % of its value. The whiff of the dollar's demise is now in the air and unless something is done quickly, its end is imminent. There is only 5 % left to go.

Only if America returns to the principle of sound money enumerated in its Constitution, will the abomination of unsound money and unsound governance end. If the Federal Reserve is allowed to continue, so too will our problems and the now 95 year downward spiral of America .

The choice is clear: End the Federal Reserve or the American dream will end. End of story.





Professor Antal E. Fekete's recent writing on the backwardation of gold has created a firestorm of controversy regarding its significance, as well it should. This is an area in which Professor Fekete is the resident expert. The professor's words of warning about gold's backwardation should not be taken lightly—nor should any of his words.

I consider myself fortunate to have made the professor's acquaintance when I first began my inquiry into matters of economics. Grounded in academic inquiry, Professor Fekete's concern for economic truths is equaled by his concern for his fellow man, attributes not commonly shared by the “economists” responsible for our current problems.

On March 27th, 28 th and 29 th , I will be attending and speaking at Professor Fekete's event in Szombathely, Hungary, on the subject of the coming depression, an event that will dwarf the disaster of the Great Depression of the 1930s.

If you are able to attend, I strongly suggest that you do. I have stated before that in my opinion Professor Fekete is a giant in a time of small men. I stand by that statement today. Opportunities to listen to persons of such stature are rare as they are invaluable.

Information about the March event is available at . The meaning and significance of gold's backwardation will be discussed as will the Professor's observations regarding the accelerating economic crisis—the resolution of the end game.

By Darryl Robert Schoon

About Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.

In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.

In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.

When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148- page analysis, " How to Survive the Crisis and Prosper In The Process. "

The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at and I began writing articles on economic issues.

The interest in the book and my writings has been gratifying. During its first two months, was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and , has been created to address this interest.

Darryl R Schoon Archive

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11 Dec 09, 20:20



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