Most Americans are against high taxes and excessive government spending. To address the problem, we must learn today what citizens in 1787 knew. They would tell you that rather than taxes or spending, today's monetary system itself is the cause of our problems because our money supply is created out of borrowing that is never paid back. We have tried to simplify this for you in the pages of this section.
You should start by learning exactly what money is. Then you can discover the risk inherent in fractional reserve banking, the safety net for bad banking provided by central banking and you will hopefully gain a complete understanding of exactly what is meant by the fraud of monetizing debt. To find out how we got here we have also provided a brief history of money and banking,
How Congress Raises Money
Our government (Congress) receives money through taxes and borrowing. What is not made clear is that there are two kinds of borrowing. Bankers understand this and it's time you did as well. Here are the ways our government receives money:
- Taxes (You know what these are.)
- Real Borrowing (When China buys US debt or you buy a US savings bond, the purchase or loan is made with real money.)
- Monetizing Debt (When Congress sells debt not purchased by China or you, the Federal Reserve buys the debt using money that does not exist. It is created out of thin air.)
Monetized debt is a direct, regressive tax on you. (A regressive tax hurts people with less money the most.)
Make the Government Exist on Taxes and Real Borrowing Alone
Monetized debt steals the fortunes of Americans because it is paid back through inflation which devalues the dollar just like counterfeiting. This is a real, but hidden tax on you that results in a real loss of your wealth. However, no one tells you it's a tax and Congress never has to vote on it as a tax. The ability for Congress to authorize the monetization of debt is not found in the constitution. On the contrary, it was prohibited. This Amendment will reinstate the original intent of the framers of the Constitution to not allow fiat money, bills of credit or monetized debt. See Article 1, Section 8 to learn that Congress was only granted the right from the people "To coin Money, regulate the value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."
If you are a State legislator or are willing to work with yours to right this injustice, please contact us for more information on how to get started.