- Foundation for the Advancement of Monetary Education - https://fame.org -

Students and Others

Students and others are objecting to rising tuition and the fraud, dishonesty, and deception they find at their own universities.

If, however, a government refrains from regulations and allows matters to take their course, essential commodities soon attain a level of price out of the reach of all but the rich, the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer.
John Maynard Keynes, The Economic Consequences of the Peace, 1920, page 240

As our present financial and monetary systems make clear, no amount of “regulation” can cure dishonesty and fraud.

The same university professors (usually monetary economists), found praising free markets and transparency in their classrooms, are often contractually bound by the Federal Reserve not to disparage it.

The legal tender quality [of money] is only valuable for the purposes of dishonesty.
Chief Justice Salmon Chase, formerly Secretary of Treasury in President Lincoln’s administration, in dissent of Knox vs. Lee (The Legal Tender Cases, 1871)

Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon.++
Robert H. Hemphill, former credit manager, Federal Reserve Bank of Atlanta

When was the last time you heard a university professor confess to being on the payroll of the Federal Reserve? At Harvard University, students staged a walk-out and were promptly criticized in the national press.

Apart from the mis-reporting and inaccurate characterization of what many students find objectionable, why shouldn’t students and others expect that college professors offer objective and honest information about our financial and monetary system?

The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.
John Kenneth Galbraith, Money: Whence it came, where it went – 1975, p15

The process by which banks create money is so simple that the mind is repelled.
John Kenneth Galbraith, Money: Whence it came, where it went – 1975, p29

Where professors are “consultants” to the Federal Reserve, are secretly paid not to disparage it, and in fact generally paid to help promote it, what possible rationale explains not disclosing this to students and the public?

When these “experts” go on television or write op-eds, shouldn’t the public know if the opinions are bought and paid for? Where is the disclosure, transparency, honesty, and accuracy students expect as part of their education and university experience?

A few things you’re not likely to find discussed by your economics professor:

There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.”
John Maynard Keynes, The Economic Consequences of the Peace, 1920, page 235ff

The decrease in purchasing power incurred by holders of money due to inflation imparts gains to the issuers of money- -.++
St. Louis Federal Reserve Bank, Review, Nov. 1975, p.22

Because of ‘fractional’ reserve system, banks, as a whole, can expand our money supply several times, by making loans and investments.++
Federal Reserve Bank, New York, The Story of Banks, p.5.

Without the confidence factor, many believe a paper money system is liable to collapse eventually.++
Federal Reserve Bank of Philadelphia, Gold, p. 10

Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.++
Federal reserve Bank of New York, I Bet You Thought, p.19

The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money.++
Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3

Emitting bills of credit, or the creation of money by private corporations, is what is expressly forbidden by Article 1, Section 10 of the U.S. Constitution.++
U.S. Supreme Court, Craig v. Missouri, 4 Peters 410

Is there any reason why the American people should be taxed to guarantee the debts of banks, any more than they should be taxed to guarantee the debts of other institutions, including merchants, the industries, and the mills of the country?
Senator Carter Glass, Author of the Banking Act of 1933

The history of how our money became transformed from constitutionally mandated gold and silver to the “paper-tickets” we use now is not well understood. Legal tender and other important monetary concepts have been removed from textbooks.

As far as we know, they are taught nowhere, and today, we cannot find a textbook that deals with the history of how our these “paper-tickets” became legal tender and the controversies that resulted.

If you think you can help us with suggestions for this website, our message and research, or you have specific expertise working with students, please allow your voice to be heard. Please pray for our cause and our work, and please help return fairness, honesty and prosperity to our financial system.

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