What It Is and What It Isn't
Money Part VI - The Money
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
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
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
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
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
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
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
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
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
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
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,
"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:
-Douglas V. Gnazzo
email: Douglas V, Gnazzo
Honest Money: What it
is and what it isn't
I : Part II : Part
III : Part IV : Part
VI : Part V : Part
VII : Part
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).
V. Gnazzo. All Rights Reserved.