The United States Federal Reserve Bank, instead of functioning as the people’s banker of the bankers, has operated solely as a private bank for the judaic benefit of private bankers.
As this section will show, all previous encounters which the United States has experienced with central banking have been very negative.
During the colonial period the American colonies created their own paper money. The first colony to do so was Massachusetts in 1691. Pennsylvania, New York, Delaware and Maryland soon followed suit. They called their currency colonial script or bills of credit. It freed them from the control of the English banks and enabled them to run their financial affairs in an inflation-free environment with few taxes. Throughout the colonies sustained, stable economic growth and prosperity were achieved, which would not have been possible under a privately run banking system based on usury.
In 1763 American statesman, Benjamin Franklin (1706-1790) visited London, where he was shocked to observe slum conditions and the wide prevalence of poverty. When the British parliament asked Franklin to explain the source of prosperity of the American colonies, he replied as follows:
“That is simple. In the colonies we issue our own money. It is called colonial script. We issue it in proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own money, we control its purchasing power, and we have no interest to pay anyone.”
The following year in 1764 the Bank of England introduced a Currency Bill 1221 which severely restricted the colonies right to issue their own money and forbade its legal tender status for the payment of private and public debts. Instead the bank ordered them to issue bonds at interest and sell them to the Bank of England in exchange for English money. In the event only half of the currency was remitted.
As a consequence of this law, the economy of the colonies collapsed and within one year more than half the population became unemployed and destitute. The Stamp Act of 1765 was the last straw, but the abolition of the colonial currency was the primary cause of the revolution.
