What Advice Would JFK Give President Obama on the Economy?

MEMO TO PRESIDENT OBAMA

 

RE: HOW TO FIX THE ECONOMY

FROM: PRESIDENT JOHN F. KENNEDY

If passed by the senate this week, your economic stimulus bill will not fix the nation’s problem.

It’s the Federal Reserve, stupid.

TIME FOR A LITTLE HISTORY LESSON

President John F.Kennedy,
The Federal Reserve
And Executive Order 11110

by Cedric X

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve.

Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificates were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything.

Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the government the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the current $10 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level.

Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve’s control over the creation of money.

Mr. Kennedy challenged the government of money by challenging the two most successful vehicles that have ever been used to drive up debt – war and the creation of money by a privately-owned central bank. His efforts to have all troops out of Vietnam by 1965 and Executive Order 11110 would have severely cut into the profits and control of the New York banking establishment.

As America’s debt reaches unprecedented numbers and we wage an international war on terror which is further increasing America’s debt, one is forced to ask, will President Obama have the courage to consider utilizing Executive Order 11110 and, if so, is he willing to pay the ultimate price so that the average American can pay for food and shelter?

Original JFK-era United States Treasury Note. Notice they almost look like todays bills, except one says “Federal Reserve Note” on the top while the other says “United States Note”. Also, the Federal Reserve Note has a green seal and serial number while the United States Note has a red seal and serial number.

Original JFK-era United States Treasury Note. Notice they almost look like today's bills, except one says “Federal Reserve Note” on the top while the other says “United States Note”. Also, the Federal Reserve Note has a green seal and serial number while the United States Note has a red seal and serial number.

Here is the text of Kennedy’s original Executive Order:

Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO. 10289

AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY

By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:

Section 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended-

By adding at the end of paragraph 1 thereof the following subparagraph (j):

(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption

and –

By revoking subparagraphs (b) and (c) of paragraph 2 thereof.

Sec. 2. The amendments made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

John F. Kennedy The White House, June 4, 1963.

Of course, the fact that both JFK and Lincoln tried this (and both met the the same end) is a mere coincidence.

Abraham Lincoln’s Monetary Policy, 1865 (Page 91 of Senate document 23.)

Money is the creature of law and the creation of the original issue of money should be maintained as the exclusive monopoly of national Government.

Money possesses no value to the State other than that given to it by circulation.

Capital has its proper place and is entitled to every protection. The wages of men should be recognised in the structure of and in the social order as more important than the wages of money.

No duty is more imperative for the Government than the duty it owes the People to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency, and commerce will be facilitated by cheap and safe exchanges.

The available supply of Gold and Silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use.

The monetary needs of increasing numbers of People advancing towards higher standards of living can and should be met by the Government. Such needs can be served by the issue of National Currency and Credit through the operation of a National Banking system .The circulation of a medium of exchange issued and backed by the Government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by Taxation, Redeposit, and otherwise. Government has the power to regulate the currency and credit of the Nation.

Government should stand behind its currency and credit and the Bank deposits of the Nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy.

Government possessing the power to create and issue currency and creditas money and enjoying the right to withdraw both currency and credit from circulation by Taxation and otherwise need not and should not borrow capital at interest as a means of financing Governmental work and public enterprise. The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of the consumers. The privilege of creating and issueing money is not only the supreme prerogative of Government, but it is the Governments greatest creative opportunity.

By the adoption of these principles the long felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprise, the maintenance of stable Government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own Government. Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power.

WHAT IS THE FEDERAL RESERVE AND WHY DO WE NEED IT, ANYWAY? 

What most Americans don’t understand is that the Federal Reserve is not Federal (look for it in the blue government pages of your local phonebook. It’s not there because it is a private corporation), nor does it have a reserve

One of the most common concerns among people who engage in any effort to reduce their taxes is, “Will keeping my money hurt the government’s ability to pay it’s bills?” As explained in the first article in this series, the modern withholding tax does not, and wasn’t designed to, pay for government services. What it does do, is pay for the privately-owned Federal Reserve System.

Black’s Law Dictionary defines the “Federal Reserve System” as, “Network of twelve central banks to which most national banks belong and to which state chartered banks may belong. Membership rules require investment of stock and minimum reserves.”

Privately-owned banks own the stock of the Fed. This was explained in more detail in the case of Lewis v. United States, Federal Reporter, 2nd Series, Vol. 680, Pages 1239, 1241 (1982), where the court said:

Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each Bank’s nine member board of directors.

Similarly, the Federal Reserve Banks, though heavily regulated, are locally controlled by their member banks. Taking another look at Black’s Law Dictionary, we find that these privately owned banks actually issue money:

Federal Reserve Act. Law which created Federal Reserve banks which act as agents in maintaining money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks. Administered by Federal Reserve Board (q.v.).

The FED banks, which are privately owned, actually issue, that is, create, the money we use. In 1964 the House Committee on Banking and Currency, Subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains a good description of what the FED is:

The Federal Reserve is a total money-making machine.It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 bills necessary to cover its check simply by asking the Treasury Department’s Bureau of Engraving to print them.

As we all know, anyone who has a lot of money has a lot of power. Now imagine a group of people who have the power to create money. Imagine the power these people would have. This is what the Fed is.

No man did more to expose the power of the Fed than Louis T. McFadden, who was the Chairman of the House Banking Committee back in the 1930s. Constantly pointing out that monetary issues shouldn’t be partisan, he criticized both the Herbert Hoover and Franklin Roosevelt administrations. In describing the Fed, he remarked in the Congressional Record, House pages 1295 and 1296 on June 10, 1932, that:

“Mr. Chairman,we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and he people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the UnitedStates; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.”

Some people think the Federal reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime. Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who camehere from Europe and who repaid us for our hospitality by undermining our American institutions.

The Fed basically works like this: The government granted its power to create money to the Fed banks. They create money, then loan it back to the government charging interest. The government levies income taxes to pay the interest on the debt.

On this point, it’s interesting to note that the Federal Reserve act and the sixteenth amendment, which gave congress the power to collect income taxes, were both passed in 1913. The incredible power of the Fed over the economy is universally admitted. Some people, especially in the banking and academic communities, even support it. On the other hand, there are those, both in the past and in the present, that speak out against it. One of these men was President John F. Kennedy. His efforts were detailed in Jim Marrs’ 1990 book, Crossfire:

Another overlooked aspect of Kennedy’s attempt to reform American society involves money. Kennedy apparently reasoned that by returning to the constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. He moved in this area on June 4, 1963, by signing Executive Order 11,110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System. That same day, Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the weakened U.S. currency.

Kennedy’s comptroller of the currency, James J. Saxon, had been at odds with the powerful Federal Reserve Board for some time, encouraging broader investment and lending powers for banks that were not part of the Federal Reserve system. Saxon also had decided that non-Reserve banks could underwrite state and local general obligation bonds, again weakening the dominant Federal Reserve banks.

A number of “Kennedy bills” were indeed issued – the author has a five dollar bill in his possession with the heading “United States Note” – but were quickly withdrawn after Kennedy’s death. According to information from the Library of the Comptroller of the Currency, Executive Order 11,110 remains in effect today, although successive administrations beginning with that of President Lyndon Johnson apparently have simply ignored it and instead returned to the practice of paying interest on Federal Reserve notes. Today we continue to use Federal Reserve Notes, and the deficit is at an all-time high.

Story originally published at:

 http://www.john-f-kennedy.net/executiveorder11110.htm

From: The Final Call, Vol. 15, No.6, On January 17, 1996

Editor’s Opinion:

With regard to our present economic crisis alone, Treachery and Treason take on a much more dire meaning and the consequences for our not paying close attention to our being warned, in terms of heeding our patriotic  leader’s from the past such as JFK, that enemies from within are seeking to undermine our very way of life and are active in undermining our civl liberties as well as our monetary system. Not to mention our once democratic operation’s of government.

It is with this in mind that beseech the politically active reading this blog, to carry the torch of reason and better judgement to those who may have contact with political representitives who may be in position to accomplish real change in our nation’s direction both politically and morally.

Information similar to the article posted above is shocking and leaves me wondering about why accountability and even objective / investigative reporting isn’t done anymore. In what is the most progressive and technically savvy time of mankind’s history… we are as in the dark as ever. We are as under-represented and hog-tied as ever in our history and we are effectively at the mercy of an oligarchy, which has blatently lied and outwardly refuses to cooperate with our rules of law.

Isn’t this the kind of thing Ron Paul lways warned us about? (Funny, not long ago, people thought he was a nut. Now, they turn to him for advice like the economic sage he is, because all Rep. Paul has been saying all these years has finally come to pass.) Have we reduced ourselves to being so terrified… that we don’t bare to look at our dirty laundry or talk to bother anymore to confront what is looking like really bad leadership and dare I say treason or treachery? When was the last time you heard anyone convicted of treason or treachery?

No, now it’s gonna be prosecutions of U.S. Citizens who are acting out (badly) in un-patriotic manners who will be thrown in jail for speaking their minds… Tick Tick Tick… Constitution’s burning folks…

Mr. Obama, will your administration deny these realities? Will you pick up the torch you were ceremoniously handed by JFK and RFK’s living legacies? You asked for these legacies to carry you to the office you now hold… will you now deny the weight and obligation, as well as the ominous responsibility to follow through with the Kennedy spirit you have channelled or the legacy of which that spirit holds to ultimatley finish the job that was started in the early 196o’s? You have the energy and support of Rev Dr. Martin Luther King, JFK and RFK.

President Obama, please dismantle the Federal Reserve. The only way to stop this economic bleeding is to go right to the source. Take the creation of money away from the private, run-for-profit central bank and restore our Constitutionally-mandated financial system. Bring back the Greenbacks!

And while you’re working on that massive to-do list, Mr. President, please prosecute Bush, Cheney and Rove for international war crimes, High Crimes & Misdemeanors!

Jack Mosel

Contributing editor

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6 Comments

Filed under barack obama, jackie kennedy, JFK, JFK Jr., John F. Kennedy, john f. kennedy jr., media, politics, president kennedy, RFK, RFK Jr., robert f. kennedy, robert kennedy jr., senator robert kennedy, the kennedys, Uncategorized

6 responses to “What Advice Would JFK Give President Obama on the Economy?

  1. Really fascinating and timely article, Jack. Thanks for posting.

    If JFK were with us today, he might just be a thorn in Obama’s side about this stimulus bill. I don’t think he would support it, as JFK was in most aspects a fiscal conservative.

    (Somehow I KNEW you were going to find a way to work Karl Rove in this article. I just knew it!!!)

  2. New Frontier

    JFK was right: It’s the Federal Reserve, stupid! Sadly Obama didn’t get that memo from the great beyond.

    I do not support the stimulus package as it now stands. If we’re going to have a “new” New Deal, then for Pete’s sake, let’s by Gawd build things, lots of things, BIG things the size of Hoover Dam; public works projects that actually get the unemployed working again!!!

    After spending hours today firing off last minute missives to my elected reps about this issue, I know that it’s probably to no avail. I know my senators will likely wind up supporting this plate of pork, even if most of their constituents beg them not to, just as they did with the first stimulus bill last fall. (Yeah, you know that superb Bush plan, which Obama & the Dems so happily supported? How’s that one working out for your family so far?)

    Oh, Good Democrats, where are you when we need you? Will you betray us yet again?

    And Jack…speaking of Karl Rove, here’s a nice quote from a 2006 interview RFK Jr. did with the Progressive that sums up my feelings towards the whole damn thing tonight:


    “The Democrats are enablers, they’ve been sissified, and they are being led around by a nose ring by Karl Rove.”

    – Robert F. Kennedy, Jr.

  3. Abolish the FED and Karl Rove… Then maybe we’ll find out that there never was an Osama to begin with…

    “Towel wearing man in foreign cave destroys America… WORLD!”

    Hmmmm that’ll never work.. Oh wait, Karl… What do ya think will make that one work?

    Karl Rogue: Hmmm we’d need to run at least 18 simulated war games with DICK in the basement of the Pentacon, to take over Norad, blinding the civil air defenses and sending all fighter planes into Canadian airspace… We’d have to have at least 1200 FEMA crisis people in place on the ground in Manhattan the morning when we “Pull” the Trade towers, after George’s little brother get’s them rigged… heh heh.. Ohh ohh we can have that FBI brat sit inside the buildings when we take ‘em down too, get rid of his ass… He’s been gettin’ too close to tying this Al-CIA-DA thing together… Hmm, we’ll send all the FBI crisis teams to California that day to attend some bullshit meeting, stranding them all out there and give us some real chaos to deal with in the East coast. The Tomahawk into the Pentacon thing is something I really want front row seats to see myself. We’d need to coordinate with some agencies… Hmmm, we could make anyone that cooperated rich from “Put calls” on… You guessed it American Airlines stock! we can assure roughly $5 million each for anyone thats a player… We’ll make China a partner and they’ll take the steel we’ll need to get the hell outta here before someone gets cute with their chemistry sets finding the THERMATE we’ll use to melt the steel causing the free fall collapse… and if any commies get around to calling for our testimonies… That Patriot thing Zelicow and Condi have been working on and the Anthrax genius idea from Dick will keep’em outta our hair… We’ll take pages right outta Adolf’s play book from the Reichstag burning and put it in play with “ZE OFFICE OF HOMELANDT ZECURITY”… HEHEH.. Then Dick will be in place to float OSAMA and SADDAM making nice nice, and we finally go for Iraq! Halliburton and The Carlyle Group are primed and pumped… The ball is in play and OSAMA’S your MAMMA!!!!! Oh boy… I can’t wait till we put the icing on the cake and implode everything with the wall street thing…. We’ll have pulled off the biggest heist in the history of modern man! Adolf would be SO PROUD!!!

    DICK & GEORGE: Karl, youre a genious! Let’s roll…

    Arrest Karl Rove ON-SITE! Let the war crimes trials and TREACHERY AND TREASON trials begin!!!

  4. It’s amazing that so few people know about the relationship between the Fed and the government. Talk about lobbying and special interests! It’s not hard to believe that the banks–all over the world–were not involved in his assasination. Also suggests why Jackie Kennedy married Aristotle Onassis–probably the only man who was powerful enough and “connected” enough to protect her from the conspiracy which killed her husband, brother-in-law, all the witnesses to Dallas, Oswald. She spent very little time with Onassis actually. This fact can be verified in the pre-nuptial agreement they made. Interesting how it was only after his death that her family came under attack again. The death of her son is as suspect as any that came before. Anyone who knows their knows that anything this deep and wide is always motivated by money, and can only be carried out by the greatest of powers. The coverups which followed these events attest to the wide reach of such powers. So, the Fed hypothesis is appealing on many level, Jack.
    Thanks for putting this in the spotlight. The crippling debt and corruption which no one any longer can deny must certainly lie at the feet of the Fed and the feckless legislators who allow this disgrace to continue. Every citizizen is responsible to become active on this issue…or change will not be possible, Obama’s best intentions notwithstanding. I don’t like the fact that he has (had to?) place so many of the Old Crony Network in high places. But, remember, there are more of US than there are of THEM! Raise your voices!

  5. Jimmy

    I believe that JFK’s Executive Order taking power away from the Federal Reserve got him killed.

    There were other reasons too, like his unwillingness to commit to wars in Vietnam, Laos and Cuba, his wilingness to negotiate with the Soviets, his stand on civil rights matters, his brother’s war against the mafia, the list goes on and on…but when JFK started tampering with the money system, he had gone too far.

    Obama’s not going to make that same error. I mean look who he appointed Sec’y of the Treasury: a former Federal Reserve Bank chief from NY who conveniently “forgot” to pay his taxes!!! lol.

  6. This is truly great. Thanks for making this available.

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