The Bleak Future for the U.S. Dollar – Professional Tax Services

On December 23rd 1913, President Woodrow Wilson signed the Federal Reserve Act into law. This act was approved by Congress when most of the members were at home for the holidays, having been told that this banking act would not be voted on until the next session of Congress. The wealthiest bankers promised that this act would stabilize our monetary system, which had experienced devastating money “panics” (today called recessions or depressions) in 1893 and 1907, causing havoc for US citizens. But the Federal Reserve system made matters worse. What you could purchase for one dollar in 1913 would today require you to pay $31.35.* This is a 3,034.6 percent inflationary increase. In addition, the national debt will increase from $18 billion in 1913 to a whopping $35 trillion by the end of 2024. Who owes this debt? We do.
At best, the Federal Reserve has proven to be a domestic failure. At worst, it has been a scam to steal the wealth from Americans and transfer our resources to a rather small group of profit-motivated bankers. Regardless, our economy is headed toward disaster.
The US became the world’s reserve currency via the Bretton Woods Agreement of 1944. This meant that the dollar was to be used in most international trade transactions. Our government began taking advantage of the confidence nations had in the US dollar by continually spending beyond its means. The result was prosperity for many Americans. However, as decades passed and nations throughout the world began losing faith in the dollar, countries searched for alternatives to facilitate trade. The result was the establishment of BRICS, a trade alliance between Brazil, Russia, India, China, and South Africa. Six more nations entered the BRICS in January of this year, and as many as twenty other nations are anxiously waiting for an invitation to join. These nations have agreed to use other currencies rather than US dollars in trade transactions, such as the Yuan and Ruble. BRICS, plus escalating inflation, will soon precipitate turmoil for Americans.
Article One, Section Eight of the US Constitution bestows Congress with “the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States…” This would allow Congress to create a debt-free national currency, stabilize our dollar, and eventually retire our national debt. Unfortunately, in 2013, Congress renewed the Fed’s charter, thus allowing private money-motivated bankers to continue to scourge the American people with ever-escalating inflation.
Next month we will explore a possible solution to our money crisis introduced by a monetary reformer and assisted by a former Nobel Prize winning economist.
Professional Tax Services is a locally owned provider serving over 3,500 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com. * usinflationcalculator.com