Policy Report: The Federal Reserve and the Integrity of Our Monetary System
Policy Report: The Federal Reserve and the Integrity of Our Monetary System
Prepared for: The President of the United States
Date: February 1, 2025
Author: Zachary Moore
Executive Summary
This policy report examines the Federal Reserve System and its impact on the economic stability, sovereignty, and long-term prosperity of the United States. The report identifies core economic, legal, historical, and moral concerns associated with fiat currency and fractional reserve banking. It outlines how this system disproportionately benefits financial elites while undermining middle- and working-class Americans. The report concludes with recommendations for structural reforms that can restore transparency, fairness, and real economic value to the U.S. monetary system.
1. Introduction
The Federal Reserve was established in 1913 with the stated purpose of ensuring financial stability, mitigating economic crises, and regulating the banking system. However, over the past century, its policies have increasingly favored financial institutions over ordinary citizens. This has led to chronic inflation, excessive government debt, economic inequality, and financial instability.
This report aims to:
Explain the fundamental flaws in the current Federal Reserve system.
Highlight the long-term consequences of fiat money and central banking.
Provide actionable solutions for monetary reform.
2. Economic and Societal Impact of the Federal Reserve System
2.1 The Inflation Tax
Inflation is a hidden tax that erodes the purchasing power of American workers. Since the U.S. dollar was removed from the gold standard in 1971, inflation has significantly reduced real wages and savings. The Federal Reserve’s policy of printing money to fund government debt and bailouts exacerbates this issue.
Key Consequences:
Declining purchasing power of wages and savings.
Asset bubbles that disproportionately benefit the wealthy.
Rising costs of housing, healthcare, and education.
2.2 Boom-and-Bust Cycles
The Federal Reserve manipulates interest rates and money supply, leading to artificial economic booms followed by devastating recessions. Instead of allowing markets to naturally regulate themselves, interventionist policies create distortions that increase financial instability.
Key Consequences:
Recession cycles driven by speculative bubbles.
Unfair advantages for financial institutions over individuals.
Unnecessary job losses and economic hardship for millions of Americans.
2.3 Unsustainable Government Debt
The U.S. government has relied on the Federal Reserve to fund deficit spending, leading to a national debt that has surpassed $30 trillion. This debt will ultimately be paid by future generations through higher taxes or currency devaluation.
Key Consequences:
Interest payments consuming a growing share of the federal budget.
Reduced economic mobility for future generations.
Increased dependence on foreign creditors.
2.4 Social and Environmental Consequences of Financial Fraud
The financial fraud perpetuated by the Federal Reserve extends beyond economic hardship and has resulted in significant social and environmental crises:
Homelessness Crisis:
Rising housing costs driven by monetary inflation have made homeownership unattainable for millions of Americans.
Evictions due to predatory lending and foreclosure practices have exacerbated homelessness nationwide.
Opioid Crisis:
Economic instability and job insecurity have contributed to widespread depression and substance abuse.
Pharmaceutical companies, protected by financial and regulatory manipulation, have profited immensely from addiction crises.
Refugee Crisis:
Global economic manipulation by central banks has fueled instability, creating conditions for mass displacement and humanitarian crises.
Environmental Degradation and Global Warming:
Economic waste, excessive resource consumption, and unproductive financial speculation have led to unsustainable environmental destruction.
The prioritization of short-term profits over sustainable development has exacerbated climate change.
Competency Crisis in Education:
Lowered education standards and misallocation of resources have created a population increasingly unprepared for the workforce.
The financial elite benefit from an undereducated populace that remains dependent on a rigged financial system.
3. Legal and Constitutional Violations
3.1 Violation of Article 1, Section 10 of the U.S. Constitution
The U.S. Constitution explicitly states that only gold and silver shall be legal tender. The introduction of fiat currency violates this principle and allows unchecked money creation without real value backing.
3.2 Legalized Fraud: Fractional Reserve Banking
Banks, under the Federal Reserve system, practice fractional reserve banking, where they lend out multiple times the deposits they hold. This creates money from nothing and artificially inflates the money supply, enriching banks while indebting the public.
Key Legal Issues:
Unjust transfer of wealth through monetary manipulation.
No accountability for banking institutions engaged in reckless lending.
Erosion of individual financial sovereignty.
4. Historical Precedents: Fiat Currency and Economic Collapse
History has shown that civilizations that debase their currency eventually collapse. Examples include:
Ancient Rome: Currency debasement led to hyperinflation and the fall of the empire.
Weimar Germany: Excessive money printing resulted in hyperinflation and economic ruin.
Zimbabwe & Venezuela: Fiat money policies led to mass poverty and economic collapse.
The Federal Reserve’s current policies mirror these historical examples and risk leading the U.S. down a similar path.
5. Policy Recommendations
5.1 Restore Constitutional Governance
The federal government must uphold the Constitution by eliminating all instances of fraud, misrepresentation, and violations of individual rights, including life, liberty, and property.
5.2 Abolish Fractional Reserve Banking
Banks should be required to maintain 100% reserves against deposits, ensuring that money creation is backed by tangible assets.
5.3 Cancel the Federal Debt and Declare a Debt Jubilee
All federal debt must be canceled, and a debt jubilee must be declared to eliminate all debts and contracts denominated in fiat currency, restoring economic justice to the people.
5.4 Revalue Gold and Silver
Gold and silver must be revalued to reflect their true economic value and reintroduced as the foundation of a stable monetary system.
5.5 Audit and Prosecute the Federal Reserve and Its Network
A full audit of the Federal Reserve and its network of banks must be conducted, and legal actions must be taken against those responsible for fraudulent practices. Any assets acquired through fraud must be returned to the people.
Prepared by:
Zachary Moore
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