federal reserve is defrauding

This post was mentioned on Twitter by TenthAmendment: New Blog Post: Abolish The Federal Reserve Bank! http://blog.tenthamendmentcenter.com/2009/11/abolish-the-federal-reserve-bank/…

http://en.wikipedia.org/wiki/Coinage_Act_of_1792

http://en.wikipedia.org/wiki/Coinage_Act_of_1792

SilverRiches.net

Which says that the Federal reserve bank notes you have in your pocket are not money, and must be redeemed for actual "money".

As the same law says: "They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank. "

We could in theory crash the Federal reserve by demanding redemption of the inflationary Federal Reserve Banknotes for the presumably more finite "lawful money."

In effect: "A run on the Federal Reserve Bank".

Assuming the above line in the same law: "The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues." Only apply to the Federal Government's taxes and banks that work with the same.

A state government could in theory refuses to accept such federal reserve bank notes in it's taxes, and instead demand the actual "lawful money" which the banks with in the state would have to redeem at the federal in order to pay state taxes.

This of course would lead to a consecration of that "lawful money" supply in any state that did such, and ultimately once enough states money wise have done it the effective collapse or devaluation(dis-empowering) of the Federal Reserve by means of run on the bank.

The results could be catastrophic but what ever states did it first would wind up extraordinarily rich, as their banks and thus people would have possession of the majority of the finite money supply which the Federal reserve only clams to hold.

Much like the first people who run on the bank to the execution of everyone else. So yes we could motivate states to do this in a very big hurry too.

“There is no legal requirement in the United States for a store to accept dollars for non-debt transactions.” -Ron Paul
http://www.cnn.com/2009/OPINION/10/30/ron.paul.fed/index.html

What I advocate is ending our dependence on the dollar. The more value the dollar loses in the next few years will make that decision very easy to make.