No Reason to be Confident in the Banking System

Rasmussen Reports recently released polling data stating “One-out-of-two Americans (50%) still lack confidence in the U.S. banking system…the figure includes 39% who are not very confident in the U.S. banking system and 11% who are not at all confident…Just 44% of adults now are confident in the U.S. banking system…39% who are somewhat confident and just 5% who are very confident.”
Rasmussen also reports, “these findings come despite the government’s spending of billions in taxpayer funds to bail out the ailing financial industry since last September’s Wall Street meltdown. Perhaps this skepticism is due in part to the continuing belief by 78% of Americans that Wall Street benefited more from the government bailout than the average U.S. taxpayer did. Only 8% say the taxpayer benefited more.”

It would be interesting to see the results of a poll asking if people ”trust” the currency in use – after all, the currency and the baning system are related. it would also be interesting to see just how many adults will admit to knowing that the Federal Reserve is a Private Bank, the Fed prints fiat currency, and he currency is further devalued via fractional reserve banking.
The Federal Reserve claims, “to provide the nation with a safer, more flexible, and more stable monetary and financial system.” Yet, “throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95% of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy.”*
On top of the 95% decrease of the value of the dollar, the Federal Reserve has nearly doubled the money supply in the past two years cutting the value of the dollar in half. I know I’ve said it before, so please forgive me for repeating myself, but it deserves to be repeated; legal tender laws – in addition to the Federal Reserve Acts – have forced the use of fiat currency. Anything less than a 100% commodity based currency is a fraud. This includes the use of fractional reserve banking and the Gold Standard. Because as soon as the dollar (or any other commodity backed currency) is fractionally reserved, it is no longer 100% commodity based, it becomes a fiat currency.

The quickest way to return to a commodity based system is to find businesses that will allow you to barter, and eschew the “system” altogether. The next best thing would be for Congress to pass the “Honest Money Act” that would repeal the legal tender law; the “Free Competition in Currency Act” that would repeal the government monopoly over the creation of coins for use as currency; & the “Tax-Free Gold Act” that would prohibit federal and state taxes on precious metal coins and bullion.

After all, with a fiat currency, there is no reason at all to trust the banking system. As more people are educated about the corrupt fraudulent system in place, the better the chances of returning to commodity based currency and a system that can be trusted.

*Ron Paul (February 26, 2009)