Most Americans would be shocked to discover the dollar they carry in their pockets is worth only four cents compared to the dollar we started with.
The steady decline of our currency has gained attention again in recent months because of presidential hopeful Ron Paul's runaway candidacy. But the big picture is still being lost. The purchasing power of the once almighty dollar has slipped to nearly nothing in under a century and, unless Americans intervene, the Federal Reserve will see that it slips into oblivion.
This accusation deserves an explanation, and the story begins with the months leading up to the Revolutionary War. There were multiple reasons for our battle for independence, but in the words of Benjamin Franklin, "The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the revolution."
And what does all that mean exactly? Put simply, instead of producing our own interest-free currency, the king was forcing early Americans to borrow money from the central bank of England. This put the country into a perpetual state of debt and, most importantly, it made us subject to a system we wanted nothing to do with.
This left us with two choices: surrender to this rather overt form of fascism, or fight back. One would think because we chose the latter any future banking system which would leave us in incredible debt would never see the light of day.
And it didn't, in fact. In 1910, Sen. Nelson Aldrich and representatives of the banking elite hid away to draft legislation that would create a central U.S. bank at Jekyll Island, Georgia. Lacking the political support needed for the bill, they waited three years after this meeting to take advantage of a newly elected president's ability to strong-arm it into law.
That man was Woodrow Wilson - the reform governor of New Jersey who agreed to back the statute in exchange for political support for his campaign. He was convinced by the bankers that this infamous piece of legislation would bring economic stability to America, and, on Dec. 23, 1913, while the majority of congressmen were away with their families, the Federal Reserve Act was passed and signed into law.
And with the stroke of a pen we were right back where we started, only this time our country had been forced into a perpetual system of debt by our own hand.
This occurs because the Federal Reserve acts like any other central bank, providing the currency of our nation and controlling its interest and inflation rates. One would think such an important institution would be heavily regulated, but it is just the opposite.
In fact, the Federal Reserve is just as much a private corporation as any other in America, not to mention that it is one to which we are deeply indebted. This private provider of our currency does not print money for free.
Each and every dollar that is put into circulation is loaned at interest to the United States of America, just as our currency was under the rule of King George III.
And unless we want to see our nation's interests controlled by an elite group of individuals again, it's time for another revolution. Rep. Ron Paul is the only candidate for president in 2008 who has spoken about this proverbial elephant in the room, writing last April: "Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued."
And unless we act quickly not only will we watch it disappear, but our fledgling democracy along with it.
Wolfe is a senior studying English education.
