The Time Is Perfect to Abolish the Fed

By Mark Anderson

The U.S. Treasury announced recently that it will borrow just shy of $3 trillion in “privately held net marketable debt, assuming an end-of-June cash balance of $800 billion. The borrowing estimate is $3,055 billion higher than announced in February 2020.” Thus, in a single quarter, the government will borrow more than twice as much as it did last year. The drastic response to the virus needs to be offset. The shuttering of all kinds of small businesses has hit grassroots independent entities the hardest.

“Marketwatch.com” says, “The soaring U.S. unemployment rate might not match the peak of 25% seen during the Great Depression of the 1930s, but it could come uncomfortably close in the next few months.”

Given that situation, Wallace Klinck, a “social credit” monetary reform expert, told AFP that, under the Covid-19 responses carried out by the U.S. and other governments, “you’re going to see an increasing centralization of the ownership of property, wealth, and production.” This, he said, fosters “Marxism by stealth, leading to state ownership.” He also predicted, that “big corporations, in collusion with big government, [will] gobble up more depressed assets.”

Klinck added, “The government is providing temporary liquidity but it’s borrowing against the future, so it’s just an artifice.” But he said that, despite assurances that the stimulus checks already paid to the American people and any future checks that may be issued will not be counted as taxable income, “the money will be incorporated into future government costs and taxes.”

Monetary reformer Mickey Paoletta told AFP: “If you have the power to create interest- free money without going into debt, and when the Constitution says only Congress can create and coin money, why does the government borrow from the Federal Reserve—a private, profit-seeking, tax-exempt corporation? After all, it’s our money based upon the value of our bonds. But as Thomas Edison said, why not ditch the bonds and interest and just create interest-free money?”

Paoletta added: “Donald Trump has indicated he eventually wants to do away with the Federal Reserve. All he has to do is enact Section 31 of the Federal Reserve Act to repeal it and enact part of Section 7 to liquidate the assets of the Fed’s member banks and it’s done. The Fed and the debt could be dissolved. The Fed is not entitled to a penny of our money anyway.”

Mark Anderson is AFP’s roving editor. Email him at [email protected].