Q. How could Congress eliminate the Federal Reserve System?
A. Section 31 of the present Federal Reserve Act provides that "The right to amend, alter, or REPEAL this Act is hereby expressly reserved," (emphasis added). Originally, this provision was set forth in Section 30, but since 1978, when another section was added, it has been designated as Section 31.
Q. Would this require a Constitutional amendment or merely an act of Congress?
A. It would require only an act of Congress.
Q. Would it require a two-thirds majority or just a simple majority?
A. The Federal Reserve Act could be repealed by a simple majority in the House and the Senate.
Q. If the Federal Reserve Act was repealed, would the federal government have to buy back its stock?
Q. How much would that cost?
A. Less than $3 billion.
Q. Would the United States then acquire all of the assets of the Federal Reserve System?
A. Yes. Section 7 says that if the Federal Reserve banks are dissolved or liquidated, the surplus after debts becomes the property of the United States.
Q. What are those assets and how much are they worth?
A. According to the March, 1982, Federal Reserve Bulletin, current assets amount to $168.5 billion. The gold listed in the assets is worth an additional $92 billion based on today's prices. This makes a total of $250 billion worth of assets which would be returned to the U.S. Government.
Q. If the Federal Reserve Act was repealed, who would be responsible for managing the money system?
A. The five trustees of the proposed National Monetary Fund. The Monetary Fund would be a branch of the U.S. Treasury.
Q. Would the trustees issue new money?
A. Yes. They would issue United States currency redeemable in gold or silver.
Q. Does this mean we would then be back on the gold standard?
A. Yes. Congress would designate the quantity of gold which each dollar bill would represent. Two grains would be a practical amount. Then each dollar bill would say: "This United States Note is redeemable, upon demand, with two grains of gold, or the same value in silver at the prevailing market price." This would make American currency "as good as gold." Read More.
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