Let’s Terminate the Federal Reserve

Let’s Terminate the Federal Reserve
by JBS President Emeritus John F. McManus

The Federal Reserve came to life in 1913 through an act of Congress. At the time of its creation, U.S. paper currency (issued by the Treasury Department) stated that all paper money could be redeemed in precious metal. Over the course of several decades, issuance of currency shifted from the Treasury Department to the Federal Reserve and the promise to redeem paper currency for gold or silver disappeared.

Right now, bills have been introduced in Congress calling for the Fed to be audited (Image from Flickr by Pictures of Money, CC by 2.0).

The U.S. dollar, known widely to be “good as gold” when the Fed was born, was worth 100 cents. Today, it’s worth is less than two cents. Where that value went is something the American people have a right to know. But, today, the Fed’s history and its monetary manipulations aren’t well enough known to get answers to many questions about how it operates.

Mostly through the efforts of two men needed attention is being drawn to the Fed’s stranglehold over our nation’s monetary system. The two are G. Edward Griffin, who authored the blockbuster book The Creature From Jekyll Island and Ron Paul, the retired congressman from Texas. The Griffin book traces the history of the Fed from its conception at a secret meeting held at Jekyll Island, Georgia, to its gradual yet, largely hidden acquisition of power over our nation’s economic life.

While serving in Congress, Ron Paul sought for years to have Congress audit the organization. In its more than a century of operation, no such audit has ever been conducted. Though retired, Paul’s efforts to have fellow House members require such a sensible examination continue. And they seem poised to achieve some success.

But still there will be resistance to these credited efforts. Fed Chairman Janet Yellen doesn’t want the Fed audited. She claims a need to have it operate independently with no outside scrutiny. Former Treasury Secretary (1995-1999) and current co-chairman of the elitist Council on Foreign Relations, Robert Rubin also wants the Fed to remain independent. He maintains that politicization of the Fed would be harmful and the choices of those who lead it should not be changed.

A short column such as this one can only touch on the harm done by the Fed. But let us at least point to an article appearing in the January 1993 issue of National Geographic magazine. NG Assistant Editor Peter White visited the Fed and was told by one of its unnamed officials that whenever the Fed buys U.S. Treasury bills (IOUs), it does so with money that “didn’t exist before.” “We created it,” says the Fed official, while admitting freely that there is no limit on such a practice except “the good judgment” of Fed officials.

Fed transactions of this kind are carried out repeatedly. Each new creation of money acquires its value by watering down (stealing!) the worth of all existing money. That happens to be what inflation truly is. Whenever a counterfeiter “creates” money, he is chased and, when caught, suffers punishment for doing what the Fed repeatedly does. If you wonder why prices are rising for homes, autos, groceries, etc., an answer has just been supplied. The price you pay simply reflects the worth of the increasingly valueless money you use.

Right now, bills have been introduced in Congress calling for the Fed to be audited. In the House, H.R. 24 seeks such a goal. In the Senate, S. 16 does likewise. Even though it’s only a first step toward freeing America of the ravages of the Fed, it’s certainly time for such scrutiny.

If you are one of the many Americans who are suffering from the shrinking monetary value of your salary, savings, possessions, etc., contact your congressman and two senators and ask each to support the appropriate Federal Reserve Transparency Act. That’s the formal name for H.R. 24 in the House and S. 16 in the Senate.

Are you receiving our free weekly e-newsletter? Sign up today! Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.


An Opponent of the IMF

An Opponent of the IMF
by JBS President Emeritus John F. McManus

The 1944 creation of the International Monetary Fund occurred even before the formation of the United Nations in 1945. But the IMF has long appeared on the organizational chart published by the UN and is without doubt one of the many UN divisions.

The International Monetary Fund is among one of the many UN divisions (image from Flickr by Mike Licht, NotionsCapital.com, some rights reserved).

Tasks of this money lending UN agency include keeping tyrannical and profligate nations afloat while financing questionable business ventures. Its chief creator, American Communist Harry Dexter White, didn’t have the best interests of U.S. taxpayers in mind. Neither has the UN. Over the years, IMF funds have bailed out Poland, Mexico, Brazil, Venezuela, Colombia, and others. There is hardly a deadbeat nation that hasn’t received IMF funds to keep it going.

Maybe some of this is about to change. President Trump has nominated Adam Lerrick for an undersecretary post within the Treasury Department. The post oversees U.S. involvement in international finance. His credentials as an opponent of bailouts for countries, banks, and investors are well known. In recent years while holding down a post at the American Enterprise Institute, he has sharply criticized the IMF for throwing money at the likes of South Korea, Brazil, Argentina, and Greece.

According to a report in The New York Times, Lerrick’s outspokenness endeared him to Reagan administration economist Allan Metzger. The two even coauthored a study in 2000 which critiqued the IMF and World Bank. They want countries to suffer the consequences of disastrous monetary policies. Metzger, now a professor at Carnegie Mellon’s business school, expressed the following welcome view of flawed IMF policy, an opinion obviously shared by his friend and fellow IMF critic.

It’s corrupting to give money to countries like Greece that never reform; those are taxpayer monies…. If we bail out countries that do things that are not in the interests of their citizens, then we just get more of the same. Adam [Lerrick] is the right man for this job.

At a Senate hearing in 2000, however, Lerrick was asked if there is any need for an IMF. His answer was guardedly positive. He believed then that the IMF is useful as a lender to emerging markets. “But reforms must be instituted to make sure costs are minimized, if not eliminated.”

Lerrick registered his somewhat positive attitude about IMF almost two decades ago. Have the more recent outrageous bailouts of European nations sharpened his view? Time will tell, of course. But there appears to be hope that American taxpayers will be paying less – and maybe nothing – to rescue deadbeat governments. Credit President Trump for reaching out to find someone who believes that America’s financing of reckless policies among some countries has to stop.

Are you receiving our free weekly e-newsletter? Sign up today! Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.


Our Threatening National Debt

Our Threatening National Debt
by JBS President Emeritus John F. McManus

When a new president takes office, he is saddled with a budget agreed to by his predecessor for the first nine months of his term. This procedure occurs because the federal fiscal year begins on the first day of October every year. Therefore the additions to the national debt attributable to Barack Obama’s eight years in office are not complete. But we can get an idea of the increase under his watch by looking at what is rightfully attributable to his leadership.

National Debt Increases from 2001 to 2016 (Image from Wikimedia Commons).

National Debt Increases from 2001 to 2016 (image from Farcaster at English Wikipedia [CC BY-SA 3.0 or GFDL], via Wikimedia Commons).

Author/commentator Terence Jeffrey claims the red ink accumulated by Mr. Obama totaled $9,335,000,000,000 on the day he left office. That’s $9.3 trillion. The previous deficit accumulated by a two-term president was $4.9 trillion for the George W. Bush years (2201-2009). That’s a little bit above half of what his successor, Barack Obama, piled up.

Congress produces a federal budget. A president can veto what he is given but presidents rarely use that constitutional power because no occupant of the White House wants the blame for government shutdown. So the planned deficit wins approval and the nation proceeds down a path to extinction. Extinction? Yes, the indebtedness cannot continue. As the old saying goes, “The piper will be paid.” Who might that “piper” be? Probably world government with total power.

A review of past decades and the indebtedness amassed by a succession of president indicates ascending guilt for each of the past 13 chief executives. They have all contributed to placing our nation’s neck in a noose, the most recent being the worst culprits. Here are some debt figures supplied by the Treasury Department.

Roosevelt (1933-1945) $.236 trillion, up 1,048% from Hoover

Truman (1945-1953) $.007 trillion, up 3% from Roosevelt

Eisenhower (1953-1961) $.023 trillion, up 9% from Truman

Kennedy (1961-1963) $.023 trillion, up 8% from Eisenhower

Johnson (1963-1969) $.042 trillion, up 13% from Kennedy

Nixon (1969-1974) $.121 trillion, up 34% from Johnson

Ford (1974-1977) $.224 trillion, up 47% from Nixon

Carter (1977-1981) $.299 trillion, up 43% from Ford

Reagan (1981-1989) $1.860 trillion, up 186% from Carter

Bush I (1989-1993) $1.554 trillion, up 54% from Reagan

Clinton (1993-2001) $1.396 trillion, up 32 % from Bush

Bush II (2001-2009) $5.849 trillion, up 101% from Clinton

Obama (2009-2017) $7.917 trillion, up 68% from Bush II

(The figure for the Obama years is not complete.)

The largest percentage increase (186%) occurred during the Reagan years when the debt total flew through the $1 trillion plateau. The largest dollar increase occurred during the Obama years (not yet complete).

What does all this mean? It means the U.S. government is spending the nation into bankruptcy. As economic guru Doug Casey states: “Giving politicians the ability to borrow is like giving a teenager a bottle of whiskey and the keys to a Corvette. The debt is an albatross around the necks of the next several generations: it’s criminal to make indentured servants out of people who aren’t even born yet.”

Congress is the key to either fiscal sanity or fiscal suicide. If you value freedom and love your children, let your representative and your two senators hear from you.

Are you receiving our free weekly e-newsletter? Sign up today! Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.


After A Century, Planned Parenthood Needs to be Shut Down

After A Century, Planned Parenthood Needs to be Shut Down
by JBS President Emeritus John F. McManus

On the 100th anniversary of Planned Parenthood, one of its greatest cheerleaders sent five separate messages to celebrate the significant milestone. Interrupting her election campaign, Hillary Clinton sent out several tweets that either praised or defended the organization that has slaughtered 59 million babies in the womb since 1973.

The trend of murdering innocent babies in the womb will continue to grow worse if the very prominent cheerleader for Planned Parenthood, Hillary Clinton, becomes America's next president. Photo from Wikipedia.

The trend of murdering innocent babies in the womb will continue to grow worse if the very prominent cheerleader for Planned Parenthood, Hillary Clinton, becomes America’s next president. (Photo by Lorie Shaull (Own work) [CC BY-SA 4.0], via Wikimedia Commons).

One of those messages sent via her computer (a non-secured instrument this time!) stated as follows: “I’m proud to stand with Planned Parenthood. I’ll never stop fighting to protect the ability of every woman in this country to make her own health decisions.” She conveniently avoided the fact that half of the victims of abortion are females needing only time and nourishment to be able to reach womanhood in a few years. They won’t enjoy the protection she mentioned. Mrs. Clinton also equated terminating life in the womb with otherwise normal health decisions. Abortion surely doesn’t allow the victim a choice, and it surely isn’t good for his or her health.

Started a century ago as the American Birth Control League, Planned Parenthood is the legacy of Margaret Sanger (1879-1966). A prominent eugenicist (the word comes from the Greek meaning “wellborn”), she sought to rid the nation of the “unfit” by which she initially meant Negroes, Hispanics, and Jews. Her goal would be achieved by forcing down the birth rate of the unwanted classes. One of her tactics included the use of deception. She told a financial supporter of her plan to recruit “colored minsters” to do her work. Explaining, she stated, “We do not want word to go out that we want to exterminate the Negro population, and the minister is the man who can straighten out the idea if it ever occurs….” (See Woman’s Body, Woman’s Right, a 1974 book by rabid pro-abortionist Linda Gordon.)

As late as November 1939 (two months after Germany launched World War II and several years after its campaign against Jews had begun, Sanger’s Birth Control Review was still commending the Nazi campaign. Almost simultaneously, the Sanger campaign began to target Catholic immigrants to the United States, another group deemed “unfit.”

Beginning in 1970, Planned Parenthood started receiving federal grants, now totaling more than $500 million per year. The organization claims that none of the taxpayer dollars it receives are used to perform abortions. Even if that claim is accurate, the government funding it receives makes easier the use of other funding to kill babes in the womb. In 2015, some determined anti-abortion crusaders videotaped admissions by Planned Parenthood officials that they were selling the body parts of recently aborted babies. An uproar over that grisly practice led to a congressional attempt to defund the organization, a failed effort due to President Obama’s veto and the congressional inability to override it. Similar congressional moves to overturn the 1973 Roe v. Wade decision that opened the floodgates for abortion have also failed.

Over its history, besides being pro-Nazi, Planned Parenthood has shown itself to be anti-black, anti-Hispanic, anti-Catholic, and anti-Jewish. Yet within these groups of Americans are millions who support the Clinton candidacy. Meanwhile, the mass media that refuses to report the truth about Planned Parenthood and its Sanger-inspired efforts chooses to paint her opponent with unsavory labels, many of which are unfounded.

One reason why the murder of innocent babes in the womb continues is that the practice has now involved millions of women and men. There is a wide lessening of disgust for a practice that, prior to 1973, was almost universally deemed abhorrent in America. This trend will only grow worse if the very prominent cheerleader for Planned Parenthood, Hillary Clinton, becomes America’s next president.

Are you receiving our free weekly e-newsletter? Sign up today! Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.


The Flawed Balanced Budget Amendment

The Flawed Balanced Budget Amendment
by JBS President Emeritus John F. McManus

Texas Governor Greg Abbott favors creation of a Constitutional Convention in order ”to fix the cracks in our broken Constitution.” He is not alone in wanting such a gathering. But our nation’s problems don’t stem from a broken Constitution. They stem from legislation approved by leaders who have broken their solemn oath to abide by the Constitution’s limits on government.

What’s lost in all of this discussion is that an amendment should be considered if the Constitution is found deficient or in error. But the U.S. Constitution isn’t at fault; the fault lies with government officials who ignore the Constitution’s existing limitations.

Governor Abbott’s claims include his belief that the Constitution grants power to conduct a “convention of the states.” Such terminology does not appear in the Constitution’s Article V. If two-thirds of the states petition Congress to create a convention, it must indeed be created. And Congress, not the states, will have power granted in the Constitution’s Article I, Section 8, Clause 18 to decide where it will be held, who and how many will be the delegates from each state, who will pay them, and more. To call a constitution convention a “convention of the states” displays ignorance of the Constitution itself.

Further, like most advocates of a constitutional convention, Governor Abbott, who proposes nine different amendments, wants to add a Balanced Budget Amendment (BBA) to the Constitution. Balancing the budget is a good idea and the nation would be better off if the federal budget were balanced each year. But the numerous BBAs proposed are so full of loopholes that they make these proposals virtually meaningless. Each BBA proposal has one or more of the following flaws:

1. Expecting government officials to honor an amendment – however well intentioned such an expectation might be – when they currently refuse to honor the existing Constitution is an absurdity.
2. Some BBAs allow 60 percent in Congress to override the requirement for balancing the budget. Getting 60 percent for other outrageous measures is a regular occurrence.
3. Various BBAs make no mention of the growing problem resulting from declaring some huge expenditures “off budget.” Use of this tactic makes a joke of a balanced budget mandate.
4. Some BBAs call for increasing taxes as a way to balance the budget, even steering taxing authority to the Executive branch.
5. Proponents of some BBAs want a stipulation that the budget need not be balanced if there’s a war, or a real or cleverly contrived national emergency.
6. Various proponents say that a BBA won’t have to take effect for five years or more – thereby sanctioning the addition of more trillions to the nation’s already enormous indebtedness.
7. Finally, balancing the budget ignores already accumulated indebtedness requiring billions annually for interest payments.

There are likely other flaws in the various proposals calling for a Balanced Budget Amendment. What’s lost in all of this discussion is that an amendment should be considered if the Constitution is found deficient or in error. But the U.S. Constitution isn’t at fault; the fault lies with government officials who ignore the Constitution’s existing limitations.

If the Constitution as it exists today were honored by our nation’s officials, the federal government would shrink to 20 percent its size and 20 percent its cost. Gone would be foreign aid, and the Departments of Education, Housing, Transportation, Energy, Health and Human Services, and more. These government programs and agencies are not and never have been constitutionally authorized.

We have made no mention of the danger involved in the creation of a constitutional convention. Let’s simply say that, just as occurred in 1787 when a convention met simply to revise the Articles of Confederation, the delegates tossed the Articles away and came up with a whole new Constitution. Such an eventuality could occur in these times, and we could lose the Constitution we have. A Con-Con is a dangerous route that should not be followed.

Be sure to contact your state legislators to ask them to oppose a Constitutional Convention.

Are you receiving our free weekly e-newsletter? Keep up with our latest news by signing up at our Facebook page. Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.


United Nations Wants Taxing Power

United Nations Wants Taxing Power
by JBS President Emeritus John F. McManus

An independent panel created by the United Nations has reported that the world body faces a multiplicity of crises and a dearth of funds to deal with them. One crisis is the flood of refugees descending on Europe. But there are plenty more needing the kind of urgent attention the UN claims it supplies.

Let your congressmen know to sign onto the bill to withdraw the US from the UN.

So the nine-member panel, made up of representatives of donor nations, some corporations, and some international bureaucracies, suggests that the UN be allowed to place a small tax on international sporting events such as the soccer’s World Cup, concerts where famous artists perform, and more. They even included as a potential source of revenue a tax on Uber taxi fares. And the recommendations include a preference for cash, not for blankets and food. Bulgaria’s Kristalina Georgieva, the current European Commission’s vice president for budget served as a member of this panel. She is being considered as a successor to current UN Secretary General Ban Ki-Moon.

Dues and donations from member nations cover the UN’s growing costs. This, of course, is something many UN officials would like to change. The behind the scenes desire is that if the UN is to meet its responsibilities, the organization should be able to gather its funds as a nation does – through an ability to levy taxes. So, we surmise, a small tax that hardly anyone would notice embedded in the exorbitant price to attend the famous soccer match or a rock concert might become a precedent for other taxes and eventual financial independence for the world body. How about the Super Bowl, the World Series, and the NBA and NHL finals? Once a taxing precedent is set, why not other taxes to fund the world body? What would such taxes pay for?

In 2010, the U.S supplied $26 billion for the UN’s peacekeeping operations, $1.5 billion for the UN’s World Food Program, and $0.7 billion for the refugee program. Each of these expenditures was beyond regular dues payments.

Right now, the United States pays the UN about $8 billion in dues and voluntary payments, far more than any other country. We pay 22 percent of the UN’s operating budget and 28 percent of the peacekeeping budget. As one observer noted, that’s more than the combined total supplied to the UN by 176 of its member nations. (There are 193 member nations in the UN.)

A Heritage Foundation examination of the UN’s efforts in combating humanitarian crises found: 1) the UN’s aid efforts ranked among the worst in efficiency; 2) mismanagement, fraud and corruption are common in peacekeeping operations; and 3) UN personnel have been accused of sexual abuses in at least a dozen nations where they were sent.

In 2006, a Procurement Task Force established to investigate UN operations uncovered fraud, waste and shoddy management that led to firings and convictions of some UN officials. But the Procurement Task Force was abolished two years later. Nobody else is watching the UN’s operations with the result that no more incidents of such corruption have been discovered.

As discouraging as all of this truly is, the possibility of the UN having its own taxing ability is frightening. What should be done before the UN gains such power becomes more obvious every day. Withdrawal from the UN is the answer, just as it has been the answer for decades.

Are you receiving our free weekly e-newsletter? Keep up with our latest news by signing up at our Facebook page. Be sure to also get our free Top Daily Headlines from The New American.


McManus_2Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and President. Mr. McManus has appeared on hundreds of radio and television programs and is also author of a number of educational DVDs and books. Now President Emeritus, he continues his involvement with the Society through public speaking and writing for this blog, the JBS Bulletin, and The New American.