The secret fight for the Federal Reserve and the control of the money supply (Part 2 JFK)

"Let me control a nation's money supply, and I care not who makes its laws." - Mayer Amschel Rothschild.

Introduction

As highlighted in part 1, I wanted to run these articles as a four-part series, JFK being the last in the series. However, given that I have only started my Substack account, the exposure and response from the Lincon Article made me change my mind and focus of JFK for part 2. Garfield, who would have been following, I will leave to last; this is ok because I feel Garfield is the most important. To recap, this is a four-part series on my book ‘Behind the veil of crypto’. Why would the monetary policies of the four presidents be relevant to crypto? They are important because they highlight first, "Let me control a nation's money supply, and I care not who makes its laws." - Mayer Amschel Rothschild. Second, it is meant to focus minds if you ask people like Micheal Saylor, who genuinely believe Bitcoin will replace the monetary Fiat system. Third, I highlight the four presidents because I think those hume control the financial system may use Crypto to reinforce that power. When used in its most accurate form, blockchain has the capacity for so much good. An immutable, transparent ledger could transform our banking system.?

John F Kennedy

Kennedy John F. Kennedy served as the 35th President of the United States from 1961 until John F. Kennedy was assassinated on November 22, 1963, while riding in a motorcade in Dallas, Texas. He was shot by Lee Harvey Oswald, who was arrested and charged with the crime. Oswald was later shot and killed by Jack Ruby while in police custody.?

John F Kennedy’s monetary policy

President John F. Kennedy's monetary policy is integral to his legacy in the United States. Kennedy's policy was unique in its approach to the country's economic growth, focusing on fiscal and monetary policies to achieve balanced budget and sustained economic growth. President Kennedy's monetary policy was designed to promote economic growth and stability.?

Most importantly, he felt that the government should control the supply of a national currency and be backed by silver.? Executive Order 11110 was an executive order issued by President John F. Kennedy (JFK) on June 4, 1963. This order granted the Treasury Department the authority to issue silver certificates, an alternative to the traditional paper currency issued by the Federal Reserve System.?

This order caused a stir in the political world, as it was seen as an attempt to bypass the Federal Reserve and create a new, separate monetary system. This executive order was issued to fix the US economy, which was in a state of stagflation due to rising prices and a decrease in the value of the US dollar. The goal of executive order 1110 was to create a sliver-backed currency that would be in competition with the Federal Reserve dollar.?

How did executive order 11110 work?

This would be achieved by giving the Treasury Department the authority to issue silver certificates backed by silver bullion, which could then be used to purchase goods and services in the same way as Federal Reserve notes. The idea was that the silver certificates would increase the money supply in circulation, which would help reduce prices and increase economic activity. The silver certificates would also be able to compete with the Federal Reserve dollar since they would be backed by a physical commodity (silver) rather than just paper money.?

The problem this created for the Fed

This would give the silver certificates an intrinsic value, making them more attractive to investors than the Federal Reserve notes, whose value. This would also help to strengthen the US economy, as it would create an additional source of liquidity and increase competition in the currency market.

“ I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, silver serves no useful monetary function”. In His speech on June 4th, 1963, JFK stated that executive order 1110 was an important step forward in creating a sound and stable monetary system “I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, silver serves no useful monetary function”. He argued that the silver certificates would have a stabilising effect on the economy and that they would help to create a more balanced monetary system. He also mentioned that the silver certificates would be an essential tool in helping to combat inflation.?

Why was executive order 11110 so necessary??

Executive Order 11110 was a historic moment that could have revolutionised our financial system forever. By introducing a silver-backed currency that could compete with the Federal Reserve dollar, it would have been a decisive move towards a fairer and more democratic economy.

Imagine a world where silver certificates had an intrinsic value, making them irresistible to investors and contributing to the growth of the US economy. In addition, a silver certificate owned by the people and controlled by an elected treasury would have made the financial system easier to manage, more stable, transparent and democratic.

It's hard to overstate the significance of this order and the positive changes it could have brought to our financial system. It was a step towards a more equitable and democratic economy, and it's a shame that its potential was never fully realised.

What was executive order 11110?

JFK's speech on June 4th, 1963, was an essential part of the process of creating a sound and stable monetary system. JFK made this statement in 1961, “at my direction, sales of silver were suspended by the Secretary of the Treasury. As further steps, I recommend the repeal of those Acts that oblige the Treasury to support the price of silver, repeal of the special 50-per-cent tax on transfers of interest in silver and authorisation for the Federal Reserve System to issue notes in denominations of $1, so as to make possible the gradual withdrawal of silver certificates from circulation and the use of the silver thus released for coinage purposes. I urge the Congress to take prompt action on these recommended changes”.The House of Representatives took up the President's request in early 1963, and on April 10th of that year, HR 5389 was passed by a vote of 251 to 122. The Senate followed suit, passing the bill on May 23rd with a 68 to 10 vote. President Kennedy signed the bill into law on June 4th and signed an executive order (11110)?

That same day, granting the Treasury Secretary the authority to continue printing silver certificates during the transition period. This act, now known as Public Law 88-36 (77 Stat. 54), repealed the Silver Purchase Act of 1934 and related laws, eliminated the tax on silver transfers, and gave the Federal Reserve the power to issue one- and two-dollar bills, in addition to the notes they already had the authority to issue. Previously, the Silver Purchase Act had required the Secretary of the Treasury to buy silver and issue silver certificates. Still, with its repeal, the President delegated that authority to the Treasury Secretary through the Agricultural Adjustment Act. Text of Executive Order??

President Kennedy's Executive Order (E.O.) 11110 modified the pre-existing Executive Order 10289 U.S. President Harry S. Truman issued on September 17, 1951. It stated the following:? The Secretary of the Treasury is hereby designated and empowered to perform the following-described functions of the President without the President's approval, ratification, or other action. E.O. 10289 then lists tasks (a) through (h), which the Secretary may now do without instruction from the President. None of the powers assigned to the Treasury in E.O. 10289 relates to money or monetary policy.??

President Kennedy's E.O. 11110, in its entirety, follows SECTION 1. Executive Order No. 10289 of September 19 [sic], 1951, as amended, is hereby further amended -- (a) 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 the redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption,"?

?(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof. SEC. 2. The amendment made by this Order shall not affect any act done, any right accruing or accrued, or any suit or proceeding had or commenced in any civil or criminal cause before the date of this Order. Still, all such liabilities shall continue and may be enforced as if said amendments had not been made.?

Executive order 11110, sadly, didn’t last.

In 1964, C. Douglas Dillon, the Secretary of the Treasury, stopped exchanging silver certificates for silver dollars. By 1968, silver redemption had ended entirely. In the 1970s, many of the remaining silver dollars in mint vaults were sold to collectors for their value. In 1982, Congress eliminated the remaining legal foundation behind Executive Order 11110 with the passing of Public Law 97-258. On September 9, 1987, President Ronald Reagan issued Executive Order 12608, revoking the amendment made by Executive Order 11110 to Executive Order 10289. This effectively revoked Executive Order 11110.?

Executive order 11110’s spirit still lives with us.

However, its legal authority had already been invalidated five years prior in 1982. If Executive Order 1110 had been executed into law, it would have had a negative impact on the value of the federal reserve-backed dollar.? But, John F. Kennedy was less worried about the stability of the Federal Reserve and more of an advocate for the role the government needed to play in the nation's economic well-being.?

?Why did JFK feel executive order 11110 was so important?

In 1961, he declared it necessary to “establish a form of permanent government control over the monetary system and the issuance of currency.” He felt that the government should not rely upon the private banking system for its currency, which could lead to instability and economic hardship. I highlighted the 1961 speech; Kennedy stated: “I believe that we must establish permanent government control over the monetary system and the issuance of currency.?

To do this, the government must have the power to issue its currency backed by the full faith and credit of the United States. Furthermore, this currency must be a silver dollar, not a gold one, and a government-issued currency and not a private banking system currency.” Kennedy wanted to ensure that the government had control over the money supply and that the economy would not be vulnerable to the whims of private bankers. In addition, he felt that issuing a silver dollar that the government backed would provide the nation with a stable currency source that could stimulate the economy and create jobs.?

Kennedy believed that a silver dollar would help to strengthen the nation’s economy by increasing the purchasing power of the American people. He stated, “By making the dollar stronger, we will not only reduce inflation but also bring greater stability to the currency so that our people can purchase more goods and services with the same amount of money.”Kennedy also felt that creating a silver dollar owned and backed by the government, rather than the private banking system, was essential to the nation’s economic health and stability. He believed that it would protect the nation from the potential instability caused by the private banking system and provide a more stable source of currency that could be used to stimulate the economy and create jobs.?

Conclusion

President John F. Kennedy's monetary policy was a unique and significant approach to the country's economic growth, focusing on combined fiscal and monetary policies to achieve a balanced budget and sustained economic growth. His executive order 11110, which granted the Treasury Department the authority to issue silver certificates, was designed to promote economic growth and stability by focusing on both fiscal and monetary policy. This order could have revolutionised the US financial system by introducing a silver-backed currency that could compete with the Federal Reserve dollar. It was a step towards a more equitable and democratic economy, and it's a shame that its potential was never fully realised. Imagine a world where silver certificates had an intrinsic value, making them irresistible to investors and contributing to the growth of the US economy. President Kennedy's monetary policy was a significant factor in the economy's success during his time in office, and his legacy continues to inspire economic policymakers today.