Orrin Woodward LIFE Leadership Team

Winner of the 2011 Independent Association of Business Top Leader Award; Orrin Woodward shares his leadership secrets.

Fiat Money, Income Taxes, & Freedom

Posted by Orrin Woodward on February 21, 2012

Permitting government to produce fiat money is like giving a compulsive gambler unlimited poker chips. In neither case should we be shocked when runaway debt and excuses are all that ensue. Indeed, Alexander Hamilton, in a 1790 paper to the House, wrote, “The emitting of paper money by the authority of Government is wisely prohibited by the individual States, by the national constitution; and the spirit of that prohibition ought not to be disregarded by the Government of the United States.” Thomas Jefferson, furthermore, concurred, saying, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of  all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Even the founder of Keynesian Economics, John Maynard Keynes, opined on the dangers of fiat money, writing, “Lenin was certainly right. 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 is able to diagnose.”

Nonetheless, despite the many warnings on the dangers of fiat money, in 1913, the Federal Reserve was created. The name “Federal Reserve” is a misnomer, since this privately held company isn’t federal and doesn’t have reserves. In truth, because the Federal Reserve is a private company, it, unlike our government, is designed to make money. It accomplishes this by loaning money to our federal government for fees plus interest. However, in order to ensure the interest debt was serviced promptly, the income tax amendment, not coincidentally, was passed in 1913 also. By permitting direct taxation on a citizen’s income, the income tax amendment erased one of the last checks (proportional taxation of states) remaining upon government’s nearly unlimited avarice. The founders, by regulating the taxation with the State populations, tied the federal government’s hands, ensuring the individual citizen’s wealth was free from government expropriation. Sadly, with the passage of the income tax amendment, this federal constraint was removed. Since 1913, individual citizens, instead of the respective citizen’s state, have had the unequal task of squaring off against the federal government (IRS) whenever a tax dispute arises. This was not the intention of the founders.

It’s time to educate ourselves on our history, or we are doomed to lose our birthrights. Leaders must arise and educate communities around the world. Sincerely, Orrin Woodward

17 Responses to “Fiat Money, Income Taxes, & Freedom”

  1. Titi said

    Thank you for sharing these great truths that have been forgotten! By God’s grace – we will turn the tide by exposing more people to these ideals!
    God’s blessings

  2. Elaine Mallios said

    This was big news to me – being from a science background. Thanks to LIFE educational materials I have learned much. I share that information often. Interestingly, my priest lent me the book, Creature from Jekyll Island, also about the formation of the Federal Reserve Bank. Thanks for all you do. This is so important.

  3. syntraclickRyan said

    Sounds like Orrin is voting Ron Paul!

    • Actually, I am more interested in educating people on Christian, Leadership, and Economic truth since I believe its the people, not the politicians that will drive the true change. With that said, I have enjoyed several of Paul’s books. thanks, Orrin

  4. Clint Fix said


    Thanks for this well written, succinct post. Many people seem to be hacking at the leaves when it comes to policy, not understanding that the root cause of almost all federal government excess is our fiat money system. Anytime I’ve ever had a discussion with someone on the topic they almost always dismiss it by saying, “The modern day economy is vastly different from anything in history, so we can’t look to history for insight on how it should or shouldn’t work.” I’m not sure if it’s a cop-out, American arrogance, or complete lack of understanding of history and the principles of economics, but that seems to be the attitude in the general public (if they’re even willing to discuss the topic at all!) The ignorance of the general populace has allowed Fed and the fraction reserve banking system to rob us blind while we’re distracted by American Idol and what politician is going to promise us the most benefits. I think that if people would dive into economics and history, they’d find it more stimulating than TV. Economics isn’t just a few graphs drawn up in a high school or economics 101 class. It’s a huge field of study that influences nearly ever aspect of life. Don’t let the modern day political puppets scare you with their big words and convoluted economic formulas. Largely, they just want out do each other on who can talk about the economy with more jargon and large words to confuse the public and make it sound like only they know what needs to be done. In reality, the principles of economics are rather simple to grasp. Once you understand them, you’ll be able to see through all the noise in the media and the politics.

    I’m thankful to be a part of a group of people who are willing to educate themselves on the principles of freedom and inspire others to do the same. Thank you for leading the charge!

  5. Rob Robson said

    Thank you Orrin for shedding light on such an important topic. It’s amazing to me that we have allowed these evil conspirators to destroy our country for so long. How can anyone believe that these wise overlords” can outsmart the market through price fixing & “dropping cash out of helicopters”. These crooks secretly gave away over $7 TRILLION to there buddies over the past 3 years without any accountability. Our money has lost over 96% of its value since 1913 & over 80% since the 70’s! This wealth was stolen from those that have broken their backs producing & it will collapse our currency if we don’t stop it now. I am so grateful that LIFE has monetized this message & allowed me to become a professional freedom activist! We can restore freedom 1 house at a time by winning the media war. This war will either be won with books, audio’s, & events or we will end up losing our way of life through bullets & bombs. Freedom Matters!

  6. Ken Mangold said


    You are absolutely correct! There is more than plenty going on and people, too glued to their TV sets and the general media, have no idea how far we have strayed from our founding principles. I am blessed enough to have done undergraduate and graduate school in History and I also have a graduate degree in theology. These are subject I have been studying for quite a long time now. People need to read. Only by knowing and understanding our history can we truly move forward toward a Freedom Shift as brother Oliver states in his major talk and his book. A real short list of where people can start would include:

    The Federalist (Papers): If you are not quite up to or intimidated by the language of the day see Mary Webster’s Edition Two of the Federalist in Modern English. It contains a useful index linking many of today’s hot button topics to references in the Papers.

    The Founding Father’s Guide to the Constitution: For an easy to read primer to “Originalism” this newly published book by Brion McClanahan is a great place to start. It shows how both parties have strayed from the Constitution as ratified to benefit the political class using excellent quotes from many original sources.

    New Views of the Constitution of the United States: The men who were involved with penning our Constitution made a pact to keep the notes and other documents from the proceedings of the Constitutional Convention secret. Those documents were released nearly thirty years after the fact. John Taylor, in 1823, published this work to show what our Founding Fathers meant and why they chose the wording, phrases, and concepts they did in putting together the Constitution. He also goes on to show that corruption of the original text was already taking place (Like Hamilton’s distinction between explicit and implied powers and then his use of implied to justify The First Bank of the United States).

    There are many other documents and books to read. And while not always the easiest to get through, original documents are important to study and a good dictionary from the period would serve anyone well. Remember, fellow LIFE members – it is not what we think the word means now, but what it meant when the documents were written.

    Thank you, Orin for another spot on article. May it serve to awaken in all of us a desire to leave a legacy for our children beyond Survivor and Jersey Shore!

    Pastor Ken Mangold

    • Ken Mangold said

      That’s two R’s, Mangold ORRin. Yeesch! You think I could spell such a common,everyday name . . . .

      • Mary Hermsen said

        Great response, Ken! Thanks for letting us know about more educational materials. As far as the spelling of Orrin; my daughter’s name is Erinn, and I’ve found myself spelling it Errin a few times since we’ve been with Team!! Or sometimes Orrin is Orinn. You’re in good company!

  7. Orrin,

    Thank you for this post as well as your chapter on this very topic in your Resolved book. I remember a couple of years ago you did post a series of articles on your blog on this very issue and the ramifications we saw throughout history. Thank you for your diligence in keeping the truth in front of us.

    I just returned from India after a week’s trip and I have a feeling that many of the up and coming countries like India will face the same issues if they are not already as I see a lot of the same behavioral patterns being established where the government and the elite 1% having complete control of the decision process but masquerading in the name of greater good. There are a lot of good cultural behavioral patterns that established a country like India and I see strength in them but I also see an impact of the west like I have never before. They can copy all they want but not until they see the strong underlying submission to judeo christian beliefs that formed this nation I fear they will miss the point whether they embrace christian beliefs or not.While we are on it, how about paying attention to the same in the USA.

    Building large communities by impacting one individual, one family at a time like do in LIFE and TEAM, I can see bannister effect that will permeate the true freedom lovers all across the world. Calling is very clear. Change your thinking, surround yourself with hungry freedom loving individuals, find the next hungry student in our neighborhood first and very soon the neighborhood is across the globe.

    God bless you and thank you and to the policy council members for giving us the platform to accomplish the same.

  8. I haven’t studied nearly enough books on the subject as you, but I’m on my way! Thanks for helping us open our eyes and for leading people to the truth in a world still very much dedicated to economic fallacies!

    It has been posts like this in the past that has lead me to delve into the world of economics and see the truth for what it is!

  9. Rob Crichlow said

    Hear! Hear! I fully agree that with the ability to create money with no limit (theoretical) … there is no incentive to cut back on spending. Hey … let’s just print more money. Thanks for helping people understand the ‘real’ consequences of having a fiat money system funded by an ever increasing tax burden. Hey slaves get 3 meals and a place to sleep. 🙂

  10. Nicole Allen said

    Thank you Orrin,

    You are opening eyes to the truth. We will learn and change with LIfe and our communities.

  11. rjfisher1 said

    Thanks for planting the seeds of truth for so many. I am trying to lead others here, get more seed and scatter it everywhere we go.

  12. Carmine Villani said

    Another fact, which I have learned from the Team system, was the passage of the 17th Amendment, also in 1913. This amendment removed the last check in the spending policy for the government. Prior to this amendment the Senators were not elected by the people, but were selected by a State’s legislature. The intent of the Founding Fathers was to have the power of the people (Congress), be balanced by the power of the State (Senate). This served to limit government spending. The 17th removed this check. Now that the Senate had to answer to the voter and not the State, the balance changed. The States lost power to the National government. Coupling this with the 16th Amendment and the passage of the Federal Reserve Act not only have the states lost power, but we the people lost as well.

  13. Mary Hermsen said

    Thank you, Orrin, for your great teaching on these topics. I was never very interested in history while growing up, as it seemed it was mainly about memorizing dates. There seemed to be little relevance to our lives.

    Now I am fascinated as I am learning the truth about our country! And it is all so relevant to every aspect of our lives as Americans. Learning our history will help us change/affect our future. I’m so excited to be part of the Movement. Thanks for leading the charge!!

  14. Jim Bontrager, Jr. said

    For history on Fiat money we need look no further than the Confederate currency of the Civil war (or the original Continental Dollar) to see how quickly and easily all can be lost. We have ample history of our own, but somehow think those lessons don’t apply in our contemporary arrogance. Thank you Orrin for reminding us all that those who ignore history are doomed to repeat it and for providing so many riveting lessons in that history so that we remember!

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