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Honest Money
What It Is and What It Isn't

Money Part VI - The Money Power

Douglas V. Gnazzo
Apr 24, 2006

Emitting bills of credit, or the creation of money by Private corporations is what is expressly forbidden by Article 1, Section 10 of the U.S. Constitution."

The Power of Money

The money power, just the sound of it is awesome. But what does it mean, what is it? Is the power of money the same as the money power?

Money is good for one purpose, to be used in exchange for other goods and services in the marketplace. When one sells goods they buy money, when they sell money they buy goods.

Money is a representative unit-of-value of the goods it is exchanged for. The available goods and services are the real value behind the money. Money is a receipt for the value of other goods that can be purchased with the exchange of money.

By this, we see that money has power - the power to be accepted in trade to purchase other things - life's necessities if you will. The purchasing power of money is literally the power to purchase. It is one of the pillars of the quality theory of money.

Because money is used to purchase other goods and services with, the more purchasing power that money has, the greater is the quantity of things it can purchase - the better off is one's standard of living. This is the power of money in its most basic form.

But what of the money power - is that different from the power of money?

The Money Power

Article 1, Section 8, Clause 5 of the Constitution states:

"Congress shall have the power to coin money, regulate the value thereof and of foreign coin, and fix the standard of weights and measures."

As discussed last week, the power to coin money meant the power to mint coins of silver and gold, silver and gold that was in the possession of the people who brought it to the mint for coining.

The government did not own the silver and gold - the people owned the silver and gold. The government simply coined the bullion, and affixed its stamp certifying the weight and fineness of the metal content of the coin.

This is the critical difference between the power to coin money, and the power to emit money.

The power to coin money is not the same as the power to emit money.

The power to issue money is the power to create money, to be in possession of the money so created, to hold title to the money. Congress was never granted this power; in fact, Congress was denied this power as a disability.

The original wording of Article 1, Section 8, Clause 5 of the Constitution included the words, "emit bills of credit."

This exact issue was hotly debated as the Congressional records show. The delegates voted to strike out these words, thus denying the Government the power to issue paper currency or bills of credit.

The Power To Borrow

Furthermore, Congress was granted the power to borrow money, as is clearly stated in
Article 1, Section 8, Clause 2:

"Congress shall have power to borrow money on the credit of the United States."

As mentioned last week, if Congress was granted the power to issue or create money, then why would it ever need the power to borrow money? Why borrow money when you can simply create or issue it?

The Power To Issue

From this we see that the power of money is different from the money power. The power of money has to do with its purchasing power. The money power has to do with the power to create money, to issue money.

In a hard currency system, such as our constitutional system of silver and gold coin, this includes the power to coin money. Nevertheless, the government does not own or hold title to the money so coined - the people do.

The money is private property. It is not the property of the State.

The state can obtain money by taxes, and by its Constitutional power to borrow money on the credit of The United States. The ability to collect taxes gives the government any credit to speak of, as the government does not produce goods for sale in the market.

The State should not have the money power - the power to create money.

The money power is arguably the greatest power the State can wield. The military power is the only other power that comes close, as today's military-industrial complex has the raw power to annihilate the entire planet, leaving nothing but death and misery as a testimonial to its vanity.

It has been said "the sinews of war is money", which is starkly self-evident, as everything costs a price - weapons, food to feed the soldiers, the soldiers pay, and on and on.

From this we see that war cannot be waged unless there is the money available to finance it. The merchants of death know this all too well.

Alexander did not conquer - Alexander's gold conquered.

The price of war - the costs of war, is one of the main excuses the elite money power use for their control of the money power to issue not only money, but paper fiat debt-money, as well - the preferred food for the dogs of war, as it's cheap and comes in large quantities.

The Control Of Money

The money power is a great force for either good or evil; depending upon whose hands, it resides in. Whoever controls the money, controls all else, including the people.

Lord Rothschild knew this quite well, as it was the creed he lived by. He cared not who was King or Queen, as long as he controlled the money.

Presently the State and The Federal Reserve control the money power. By controlling the money, the powers that be have usurped our freedoms and liberty.

Yet, hardly a whimper of protest is heard throughout the land. All is silent - the silence of the lambs.

No one questions the authority over the money power. Many protest war, famine, and other worthy causes - as well they should.

Why is the money power left unscathed, when we have just seen that it is the greatest power of all, even greater than the military-industrial complex's power of the war machine?

Congress was never delegated the power to issue money - the money power. The money power is one of the unalienable rights of We The People.

It is the people that produce the goods and services sold in the marketplace, not the State. Moreover, as we have seen, the goods and services are the value that stands behind the money.

Man's labor stands behind the production of all goods. Thus, man's labor is that which stands behind the money. The money power belongs to the people - it is the means by which they exchange and procure the fruits of their labor.

Money facilitates the movement of production to consumption.

The Constitution is a trust between the people and The United States of America. Within the body of that trust, a contract was also formed, a contract between We The People and the government that we created. The government works for the people.

The people are Sovereign. The State is subservient to the people.

We The People created the government to serve the people, to protect our rights, not to dominate and control our lives by interfering within our private lives and business - by government intervention within what are supposed to be free markets.

By What Authority

By what authority does the State transgress the Constitution, first taking the money power from the people, and then handing it over to the Federal Reserve?

One of the people's unalienable rights is the right to private property, yet the government confiscated the people's gold in 1933, and made it unlawful for private citizens to own the currency of their country. Cui Bono?

We The People must take back the money power from the State and The Federal Reserve, by the proper workings of Congress, according to the Constitution, and by the due process of law in pursuance thereof.

No single group of men should have control over the money power. As Lord Acton stated:

"Power tends to corrupt and absolute power corrupts absolutely."

The money power should reside with the people for whom it exists - and by whom it exits.

The people come before the government. The State should have no existence outside of the people. The people must retain sovereignty to insure freedom and liberty see the light of day. Do not let our freedom and liberty remain hidden in the darkness of night.

We must demand that our elected representatives seek our approval for every dollar of OUR MONEY that they spend.

Article 1 Section 9 of Clause 7 of the Constitution states:

"No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time."

The Return To The People

Once the power to issue money is taken back from the government and returned to the people, the natural separation of money and State will be in balance. Such separation of money and State will help provide a clearer understanding between the boundaries of private enterprise and government enterprise.

It will clear the way for less government interference and intervention within the free market processes of private enterprise - of true and honest capitalism.

Many of our economic problems are a direct result of the money power being under the control of the State and The Federal Reserve instead of We The People.

Such a dishonest system allows those in control of the money power to favor special-interest groups, lobbyists, and all those looking for a free hand out or favor.

All economic, political, geo-political, and socio-economic problems have their roots planted deeply within the money problem. None of these other problems can be fixed unless the monetary system is fixed first.

To fix any of these other problems requires money, but not the present form of paper fiat debt-money - it requires real Honest Money that retains its purchasing power, and is in the control and hands of the people, not an elite group of bankers.

Illusions of Freedom

Presently, all we do is delude ourselves with illusions of freedom. How can we be free, if the greatest power possible for the State to possess is in their possession when it should be in the hands of the people?

If we do not have control of the money power, how can we possibly have control of our lives - our destiny? By taking back the control of the money power, we can retain our rightful place ahead of the State.

We can return the State to being the servant of the people, as the Constitution and Declaration of Independence intended and stated. The preamble to The Bill of Rights says:

"The Conventions of a number of the States, having at the time of their adopting the Constitution, expressed a desire, in order to prevent misconstruction or abuse of its powers, that further declaratory and restrictive clauses should be added: And as extending the ground of public confidence in the Government, will best ensure the beneficent ends of its institution."


Man fashions his own destiny out of the clay of his actions. Either man must choose to accept responsibility for his future and to be in control of his destiny; or man can knowingly agree to hand over the control of his future to the State.

To do so is nothing but a form of slavery, of feudalism and serfdom of the 21st century. As the Rt. Hon. Reginald McKenna, former Chancellor of Exchequer, England said:

"Those who create and issue money and credit direct the policies of government and Hold in the hollow of their hands the destiny of the people."

It is time for all free men to stand up and be counted, to accept the responsibility for his own future - to demand a return to Honest Money, to demand the return of the money power to We The People.

With the advent of Honest Money, and the power of money in the hands of the people, war would be near impossible to wage, except in direct defense of the homeland. Once a return to Honest Money is attained, then many of the other economic problems can be addressed.

"Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people."
- Rt. Hon. Reginald McKenna Chancellor of Exchequer, England

Come visit my new website: Honest Money.

-Douglas V. Gnazzo
email: Douglas V, Gnazzo
website: HonestMoneyReport

Honest Money: What it is and what it isn't
Part I : Part II : Part III : Part IV : Part VI : Part V : Part VII : Part VIII

Douglas V. Gnazzo is CEO of New England Renovation LLC, a historical restoration contractor that specializes in restoring older buildings that are vintage historic landmarks. He writes for numerous websites and his work appears both here and abroad. Just recently he was honored by being chosen as a Foundation Scholar for the Foundation for the Advancement of Monetary Education (FAME).

©2006 Douglas V. Gnazzo. All Rights Reserved.

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