(The Economic Collapse Blog)—Most Americans realize that the federal government is drowning in debt and that inflation is out of control. But very few Americans can coherently explain where money comes from or how our financial system actually works. For decades, bankers that we do not elect have controlled America’s currency, have run our economy into the ground, and have driven the U.S. government to the brink of bankruptcy. The Federal Reserve is an institution that was designed to drain wealth from U.S. taxpayers and transfer it to the global elite. Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone? Have you ever wondered why a sovereign nation such as the United States does not even issue its own currency? Have you ever wondered why we allow a group of unelected private bankers to run our economy?
Those are some very important questions. Hopefully what you are about to read will open the eyes of many. The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs who oversee a constantly expanding debt spiral which could come crashing down at any time. If the American people truly understood how our system works, they would be protesting in the streets right now. The following are 11 reasons why the Federal Reserve is bad…
1 – The Federal Reserve was created as a way to enslave the U.S. government. In fact, the Federal Reserve system literally could not function without U.S. Treasury bonds. Government debt is at the very core of the system, and our federal government is now trapped in a debt spiral from which it can never possibly escape because the system is operating exactly as it was designed. Our national debt has been rising at an exponential rate, and that will continue to be the case until either the current system collapses or we adopt an entirely new system.
2 – The individual Federal Reserve Banks are not “federal” at all. In fact, on the official website of the Federal Reserve Bank of St. Louis, it is openly admitted that Federal Reserve Banks “are not a part of the federal government” and that private banks “hold stock in the Federal Reserve Banks and earn dividends”…
The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public. So is the Fed private or public?
The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends.
3 – Why does the Federal Reserve issue our currency? The U.S. Constitution explicitly gives Congress the power to issue our currency…
[The Congress shall have Power . . . ] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; . . .
4 – The Federal Reserve creates money out of thin air. I asked Google AI about this, and this is what I was told…
Yes, the Federal Reserve (Fed) creates money out of thin air by increasing the money supply. This process is called “creating money out of thin air” because it involves adding funds to the economy without printing currency.
5 – The Federal Reserve devalues our currency. Since the Federal Reserve was created in 1913, the U.S. dollar has lost more than 96 percent of its purchasing power. The truth is that just a two percent inflation rate will wipe out half of your purchasing power within a single generation. In the chart below, you can clearly see that the beginning of the rapid rise of inflation in the United States coincided with the creation of the Federal Reserve.
6 – The Federal Reserve manipulates the U.S. economy by setting interest rates. By moving rates higher or lower, the Federal Reserve has the power to create economic growth or to destroy it. They have the power to inflate massive economic bubbles and to pop them. Most Americans believe that our presidents “run the economy”, but the truth is that the Federal Reserve has far more control over the economy than the White House does. As you can see below, every recession since World War II has come after a period of rising interest rates.
7 – The Federal Reserve also controls the national money supply. They can pump trillions of dollars into the economy or pull trillions of dollars out of the economy without being accountable to anyone. This can have absolutely disastrous consequences. For example, inflation started getting wildly out of control after the Federal Reserve dramatically increased the size of the money supply during the pandemic.
8 – The Federal Reserve has become far, far too powerful. Our financial markets swing up and down whenever a Fed official makes an important statement, and every man, woman and child in the entire country is directly affected by the decisions that the Federal Reserve Board makes. Ron Paul once told MSNBC that he believes that the Federal Reserve has actually become more powerful than Congress…
“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”
9 – The Federal Reserve is dominated by Wall Street and the New York banks. The New York representative is the only permanent member of the Federal Open Market Committee, while the other members rotate. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.
10 – The Federal Reserve has completely eliminated minimum reserve requirements for our banks. Fractional reserve banking has always been a way that the bankers have conned the public, but now they have gotten rid of minimum reserve requirements altogether. This is literally insane.
11 – The Federal Reserve is not accountable to the voters, and Federal Reserve Chair Jerome Powell is flaunting the fact that he cannot even be fired by President Trump…
Federal Reserve Chair Jerome Powell had a clear, direct response when asked during a press conference Thursday if he would step down if asked to do so by President-elect Trump.
“No,” said Powell, whose term as chair ends in 2026.
When asked to elaborate and if he would be legally required to leave, he again said, “No.”
Powell later said it is “not permitted under the law” for the president to fire or demote him or any of the other Fed governors with leadership positions.
Powell’s term will eventually end, but until then he can do whatever he wants.
Shouldn’t we have some way to keep them accountable?
After all, they have an incredible amount of power over us, shouldn’t we have at least a little bit of power over them?
Nobody knows what is really going on inside the Federal Reserve, because we aren’t allowed to see.
Unfortunately, the truth is that they desperately do not want light to be shined on the elaborate “shell game” that they are running.
Have you ever wondered if it was just a coincidence that the personal income tax was implemented just about the same time that the Federal Reserve was created?
Why does the U.S. government have to tax us at all?
Prior to 1913, there was no personal income tax in this country.
If you take a few minutes to stop and think about it, an America where there is no Federal Reserve, no personal income tax and no IRS is not that hard to imagine.
If the U.S. government functioned just fine without all of them at one time, then why couldn’t the U.S. government function just fine without all of them now?
The system that we have now is clearly not working. The Federal Reserve was supposed to guarantee that our system would be perfectly stable, but in reality our system has become much more unstable.
It is time for different thinking. It is time for the U.S. government to take back control of our currency and to take back control of our economy.
For more than a decade, I have been on a crusade to bring the Federal Reserve system to an end, and many others have been pushing for the exact same thing.
Now that we have a new administration in Washington, perhaps they will be open to listening to us.
Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Bypass Big Tech Censors
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.