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The Soon Coming Judgment Of God Upon America and How To Escape It 307
and gold:
Paper money expansionism will not work…[but] even highly sophisticated
monetary authorities go on for years accepting ever more worthless paper instead
of demanding gold…. But the time has come at last when people, including even
foreign central bankers, no longer want to hold more and more and ever more
worthless currencies…. Confidence in a currency can erode rapidly once it
becomes inconvertible, for only convertibility enables it to maintain its store of
value function indefinitely…. Without convertibility, history shows that a
currency will ultimately become worthless and disappear.
1232
What Is the Collateral for Federal Reserve Notes?
Since our gold stocks have been depleted and our currency is worthless who is
responsible for the debt both foreign and domestic created by our monetary system? Paul
Warburg who was the “mastermind” behind the creation of the Federal Reserve wrote a book
about his creation titled The Federal Reserve System: Its Origin and Growth. In his book he
reveals that: Federal Reserve notes (US currency) are private obligations but that the American
taxpayer insures these bank obligations.
1233
Warburg specifically states:
While technically and legally the Federal Reserve note is an obligation,
the sole actual responsibility for which rests on the reserve banks…. The
government could only be called upon to take up after the reserve banks had
failed.
1234
The Banks of the Federal Reserve issue and control the currency of the US for their own
profit and the taxpayers of the US insure the owners of these banks against any potential losses.
What Americans don’t understand is that since the taxpayer is ultimately responsible, the
property of the people is the collateral for Federal Reserve notes along with government
property! Congressman McGugin stated:
This money will… represent a mortgage on all the homes and other
property of the nation.
1235
Norm Franz explains what this means in his book Money and Wealth In The New
Millennium. Norm is a former monetary economist and investment company president, he is a
recognized authority on monetary systems and the effects of monetary collapses such as have
occurred in central Africa, Mexico, Asia and South America. Norm explains that: When
President Nixon suspended foreign governments from converting their dollars into gold in 1971
he had to offer collateral to the foreign creditors. Without collateral President Nixon risked a
foreign sell-off of US bonds. This would have destroyed the US’s credit rating and our monetary
system, since the system is based on debt.
The Collateral that President Nixon pledged was the natural resources of the nation. This
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