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U.S. Rep. Ron Paul, R-Texas
Americans have watched the value of their currency drop some 90-plus percent since the Federal Reserve took control of setting interest rates, lending and borrowing policies and the literal printing of cash, and a growing group – some 5,000 individuals are aboard already – are saying enough is enough.
They plan to take the private agency to court and suggest that damages could be $100 trillion or more. Most Americans probably are eligible for damages, they say.
The backlash against what U.S. Rep. Ron Paul, R-Texas, has described as the unconstitutional assignment of a congressional responsibility – the coinage of money – to a private entity, is manifesting itself in the plans for court action.
But this would not be just another case: the proposal being developed by the PatriotStorm organization at its SuetheFed.com website envisions teams of attorneys analyzing data, demanding information, verifying damages and arguing court cases.
“Our litigation plan will be loosely patterned after the tobacco litigation model executed during the 1980s and 1990s; only far more organized, coordinated and focused in order to provide shared access of all discovery materials and briefs developed to all of our network law firms and prosecutors nationwide,” the website explains.
“The litigation activities will be divided among three broad areas: a) research; b) analysis and dissemination of discovery materials and briefs, and c) litigation coordination. The company will recruit several hundred to several thousand highly respected small to mid-sized litigating law firms to pursue the class action litigation for their representative plaintiffs (live persons, companies, municipalities, etc.) residing in their respective geographic areas.”
Congressman Paul long has argued that the Federal Reserve simply is illegal. Some of his concerns have revolved around Article 1, Section 8 of the Constitution, which assigns to Congress the right to coin money.
There is no mention in the Constitution of a central bank, and it wasn’t until the Federal Reserve Act of 1913 that the Fed was created.
Paul previously has said, “Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy.”
And he’s proposed repeatedly – and again in this Congress – the idea of auditing the Fed to determine exactly what it has been doing and then begin making corrections. With a book titled “End the Fed,” he’s made no secret of his ultimate goal.
Now Richard Davis, the key mover behind PatriotStorm and SuetheFed.com website, has said while he likes Paul’s determination and goals, he’s not sure there is the “willingness” in Congress to change the system.
“If there was, we would have done it in the last 97 years,” he told WND. “He as an insider has not been able to persuade people to do that. He came close last summer, with all those sponsors (a majority of the U.S. House). Then they all deserted him at the moment of truth.”
Davis said that’s why he believes his plan to flood the court system with claims is the way to solve the problem. He said the 5,000 volunteers who have signed onto the plan already are enough to form classes of plaintiffs in most jurisdictions, and his next emphasis is lining up the funding for the research, filings and other associated costs.
He said the problems that America faces today – mortgage fraud, foreclosures, job losses and bankruptcies – mostly can be blamed on the mismanagement of America’s monetary system and policies.
That the Fed is at least partly to blame for the financial problems that have developed in the U.S. seems not to be in dispute.
Bernanke said it was the Fed that caused the Great Depression, the worldwide economic downturn that persisted from 1929 until about 1939. It was the longest and worst depression ever experienced by the industrialized Western world. While originating in the U.S., it ended up causing drastic declines in output, severe unemployment and acute deflation in virtually every country on earth. According to the Encyclopedia Britannica, “the Great Depression ranks second only to the Civil War as the gravest crisis in American history.”
At a Nov. 8, 2002, conference to honor economist Milton Friedman’s 90th birthday, Bernanke, then a Federal Reserve governor, gave a speech at Friedman’s old home base, the University of Chicago.
After citing how Friedman and a co-author documented the Fed’s continual contraction of the money supply during the Depression and its aftermath – and the subsequent abandonment of the gold standard by many nations in order to stop the devastating monetary contraction – Bernanke added:
Before the creation of the Federal Reserve, Friedman and [Anna] Schwartz noted, bank panics were typically handled by banks themselves – for example, through urban consortiums of private banks called clearinghouses. If a run on one or more banks in a city began, the clearinghouse might declare a suspension of payments, meaning that, temporarily, deposits would not be convertible into cash. Larger, stronger banks would then take the lead, first, in determining that the banks under attack were in fact fundamentally solvent, and second, in lending cash to those banks that needed to meet withdrawals. Though not an entirely satisfactory solution – the suspension of payments for several weeks was a significant hardship for the public – the system of suspension of payments usually prevented local banking panics from spreading or persisting. Large, solvent banks had an incentive to participate in curing panics because they knew that an unchecked panic might ultimately threaten their own deposits.
It was in large part to improve the management of banking panics that the Federal Reserve was created in 1913. However, as Friedman and Schwartz discuss in some detail, in the early 1930s the Federal Reserve did not serve that function. The problem within the Fed was largely doctrinal: Fed officials appeared to subscribe to Treasury Secretary Andrew Mellon’s infamous “liquidationist” thesis, that weeding out “weak” banks was a harsh but necessary prerequisite to the recovery of the banking system. Moreover, most of the failing banks were small banks (as opposed to what we would now call money-center banks) and not members of the Federal Reserve System. Thus the Fed saw no particular need to try to stem the panics. At the same time, the large banks – which would have intervened before the founding of the Fed – felt that protecting their smaller brethren was no longer their responsibility. Indeed, since the large banks felt confident that the Fed would protect them if necessary, the weeding out of small competitors was a positive good, from their point of view.
In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn. …
Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.
G. Edward Griffin, in “The Creature from Jekyll Island,” explains the cause of wars, boom-bust cycles, inflation, depression, prosperity and more – and calls the Fed the most blatant scam of all history.
History records that in 1913 President Woodrow Wilson approved the Federal Reserve Act but later reflected that his actions “unwittingly ruined my country.”
Wilson said that since the U.S. system of credit is concentrated in the hands of a few, “we have become … one of the most completely controlled and dominated governments in the civilized world.”
According to SuetheFed.com, the PatriotStorm grass-roots organization wants to restore prosperity in the nation.
It cites as objectives to “spearhead, organize, fund and manage the largest armada of civil litigation in history.”
As part of that, it seeks to obtain revocation of the Federal Reserve’s charter, recover money due “all living U.S. persons,” eliminate federal, state and local debts to the Federal Reserve and collect damages.
“We believe that the Federal Reserve System is antiquated and dysfunctional and needs to be abolished,” the organization explains. “Our opinion is shared by many experts in this field. ”
Further, as the Fed is a “private company,” given a monopoly on the U.S. monetary system, its impact is “profound” in its inequality, and it must be replaced. The website estimates damages at $100 trillion.
Citing potential causes of action that include breach of fiduciary duty, breach of contract, conducting a Ponzi scheme, theft, gross negligence, unjust enrichment, accounting malpractice, banking fraud, fraud in inducement, deceptive business practices and others, the website said PatriotStorm “is preparing to unleash the largest armada of civil class action litigation in history.”
“We will be focusing that attack directly on the Federal Reserve in virtually every municipal, county, state and federal court in the nation. … We are confident that we have right on our side, and will win this fight – with your participation and support.”
Paul recently announced, as chairman of the House Financial Services Subcommittee on Domestic Monetary Policy and Technology, a plan to audit the Fed.
His plan isn’t new, and even with Republicans in the minority in the U.S. House a year ago, he collected support from some 320 members – a majority – of the House.
Paul’s demand for Fed transparency dates back years.