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  • Writer's picturePeter Serefine

The Unconstitutional Impact of the Federal Reserve: Detrimental Effects on Taxpayer Citizens


Introduction:

The United States Federal Reserve, often hailed as the guardian of the nation's economy, has come under scrutiny from constitutional originalists who argue that its existence and operations exceed the bounds of the Constitution. This article aims to demonstrate, through quotations and citations, the unconstitutionality of the Federal Reserve and the negative impacts it has on hardworking taxpayer citizens.

Unconstitutional Origins:

"The Congress shall have Power... To coin Money, regulate the Value thereof" - U.S. Constitution, Article I, Section 8

These words clearly assign the authority to create and regulate money to Congress, not to an independent central bank like the Federal Reserve. As Thomas Jefferson warned,

"I sincerely believe that banking establishments are more dangerous than standing armies" -Letter to John Taylor, 1816,

highlighting the Founders' concerns about centralized financial power.

Excessive Control over Monetary Policy:

The Federal Reserve wields significant influence over the nation's monetary policy, leading to concerns of undemocratic control. Congressman Ron Paul aptly observed,

"Our paper money system is based on nothing but faith. […] It has no real value; it's not backed by gold or silver" - Speech to Congress, 2002

Such a system, disconnected from tangible assets, allows the Federal Reserve to manipulate currency, often leading to inflation and devaluation, which disproportionately harm taxpayers.

Lack of Accountability and Transparency:

One of the most alarming aspects of the Federal Reserve is its lack of transparency and accountability. As Congressman Alan Grayson remarked,

"The Federal Reserve is not a government agency. It is a private banking cartel" - Interview with Dylan Ratigan, 2009

The secretive nature of the Federal Reserve's decision-making processes, combined with limited oversight, undermines the principles of open governance and inhibits public understanding of its operations.

Negative Impact on Taxpayer Citizens:

The Federal Reserve's policies often have adverse consequences for hardworking taxpayer citizens. For instance, former Congressman Paul stated,

"Inflation is a 'hidden tax' that confiscates wealth from the citizenry" - End the Fed, 2009

The devaluation of the currency erodes purchasing power and reduces the standard of living for everyday Americans.

Furthermore, the Federal Reserve's bailouts of financial institutions during times of economic turmoil raise concerns about the fairness of the system. As Nobel laureate economist Joseph Stiglitz emphasized,

"We have a banking system that's designed to privatize gains and socialize losses" - Interview with Bill Moyers, 2009

Taxpayer citizens shoulder the burden of bank failures, while Wall Street profits from risky behavior, creating an unjust distribution of wealth.

Conclusion:

Many prominent voices reveal the unconstitutional nature of the Federal Reserve and its detrimental impacts on taxpayer citizens. The concentration of monetary power in an independent institution, lacking transparency and accountability, undermines the principles of limited government and individual liberty enshrined in the Constitution. It is crucial for constitutional originalists and concerned citizens to engage in informed discussions and demand a reevaluation of the Federal Reserve's role in our nation's economic landscape. Only by adhering to the constitutional principles and ensuring accountability can we safeguard the interests of hardworking taxpayers and promote a more just and prosperous society.


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