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READERS’ FORUM

Comments under 300 words, please. We cannot engage in correspondence but do appreciate your contribution. We do not publish insults or attacks against other readers. Points should stand on their own merits. You are welcome to express your religious views but not to criticize the views of others. Our mission is to unify our readers, not divide them. Send comments here.

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IS MONEY REALLY CREATED OUT OF NOTHING?
2015 Sep 4 from James Mayton
I hope that someone (maybe Mr. Griffin?) can give me a more detailed explanation about something from “THE CREATURE” book about “people making up money out of nothing”? I’m still unclear on that concept? Is it a case of no gold / silver backing our paper currency or does it mean something else? Please help me here?

REPLY FROM GEG: Hello James, the short answer is that, when any of the banks that comprise the Fed make a loan, except under some minor circumstances, they have no money to lend of their own. They simply create it for the specific purpose of lending it. When the loan is paid back, the money goes out of existence again, but the banks have the benefit of collecting interest on it while it exists. That’s interest collected on “nothing”. In truth, however, it is not really nothing. It is worse than that. It is debt. It is the IOU that borrowers gave to the banks in return for the money. So, in reality, the money was created out of debt. That’s it in a nutshell.

PREFERS THE OLD STYLE
2015 Sep 4 from Barbara Escher
Mr. Griffin, Your news is number one on my list! I do, however prefer the old style.

NEED-TO-KNOW IS A HIT
2015 Sept 4 from John Black
Hi Edward, Thank you for the excellent weekly newsletter, it is greatly appreciated and forwarded on to many. Thanks for having the beautiful pictures in it, and the humor section is also a great stress reliever.

IS THE FED ILLEGAL?
2015 Sep 2 from Patrea Patrick
What do you see as illegal about the Fed? Are there (or were there) constitutional rights that were suppose to protect the country from such a system? Thank you for your help in these matters, as question arise, and to call upon you is a great gift.

REPLY FROM GEG:
Hello Patrea.
The Fed is legal because it was created by a law (The Federal Reserve Act). However, it is unconstitutional because it does what is prohibited in the Constitution (issue bills of credit as money). Another way of looking at its unconstitutionality is that Congress gave the Fed power to issue something other than bullion coins as money, yet Congress, itself, never had that power to delegate.

Now, the plot thickens: The Constitution is supposed to be the highest law of the land. If the word ‘illegal’ is defined as something that violates a law, and if the Constitution is the highest law, then the Fed is illegal at the highest level even though it was created by a law. Ironically, that makes it an illegal law!

Unfortunately, the Constitution does not enforce itself. None of this makes any difference if Congress and the President and the judges and the news media and the teachers and the preachers and the voters do nothing about it.