Economists use the term create when speaking of the process by which money comes into existence. Creation means making something that did not exist before. A piece of paper of little value is printed so that it has purchasing power. Its value has been created.
Money is very cheap to make, and whoever controls the creating of money and the monetary policy in a nation can make a tremendous profit. In addition, whoever controls monetary policy controls the direction of society. They control where money goes. They control what gets funded and what does not get funded.
The Framers of the US Constitution understood money. The Framers of the US Constitution understood how profitable creating money can be. The Framers of the US Constitution insisted on placing the power to create money and the power to control it ONLY in the hands Congress.
The Framers believed that the American people should share in the profits of money creation and therefore the Federal Government must be the only creator of money. The Framers further believed that all citizens, of whatever state, would benefit by an adequate and stable currency. Therefore, according to the Framers of the US Constitution, the Federal government must also be, by law, the only controller of the value of money.
Since Congress was the only legislative body subject to all the citizens at the ballot box, it was, to the Framers of the US Constitution, the only safe depository of so much profit and so much power. The Framers wrote it out in Article 1, Section 8, Clause 5: "Congress shall have the power to Coin Money and Regulate the Value Thereof."
But in December of 1913, Congress passed the Federal Reserve Act of 1913. This Act authorized the establishment of a Federal Reserve Corporation, owned by shareholders and run by a Board of Directors known as The Board of Governors of the Federal Reserve System.
This Federal Reserve Act of 1913 completely removed from Congress the right to create money or to have any control over its creation, and gave that function to The Federal Reserve Corporation.
The Federal Reserve Corporation is a privately owned bank and therefore is operated for the financial gain of the shareholders rather than for the good of the People of America.
America needs monetary policy to be set in the best interest of the People of America and not the shareholders of the banks. America needs a Congress that is free from undue influence to set monetary policy in the best interest of the People of America and not the campaign contributors.
That is why Monetary Reform and Campaign Reform must be the top two issues discussed in this election!
I am Jason Woodward. I am a financial attorney who is running for President of the United States because I want to educate the public about our system of currency.
To learn more, follow me on Twitter @VoteforWoodward