The source of the information was an essay written by Sir Allen Greenspan KBE (Knight commander of the British empire) also know as our former chairman of the Federal reserve, titled gold and economic freedom. A good overview in context is presented in the excellent book capitalism the unknown ideal by Ayn Rand.
The point he is making is that fractional reserve money especially fiat fractional reserve money backed by taxation leads to feudalistic and anarchistic government such as socialism, communism and democracy. The system we have incorporates the central Marxist plank of a progressive tax rate punishment for success and reward for failure and a means of creating and unfair advantage for state sponsored businesses and monetary systems. He further illustrates the FED/IRS is a giant ponzi scheme based on the Bank of England that was used to save socialism in England and foist socialism on the U.S. Allen Greenspan in the essay maintains that freedom is only possible with a gold based monetary system a position I agree with, and is the entire basis of the U.S. Constitution so much so that debasing the currency thought the treasury as the bailout and the entire economic meltdown did is punishable by the death penalty and is considered the most treasonous and heinous crime possible in the U.S. Our Constitution mandates a gold and/or silver based monetary system and to guarantee freedom, property rights and fair and equal treatment of all. It certainly says nothing about a tax and monetary system set up to punish productivity and savings and it certainly says nothing about redistributing assets and wealth. The root cause of msfraud is the ability of the lenders to use our money as theirs and the victims being denied basic due process and property rights, right to a trail by jury etc. The system is backed by the FED/IRS which allows the banksters to use our money as theirs and have their criminal actions backed by use of government armed force and the ability to seize assets though the IRS. So our representative republic has been stripped from us and replaced with a socialistic democracy through the progressive tax rate mandated by the FED/IRS and now with the bailout we see the final stage being implemented with an effective banking dictatorship. Heres article 1 of the Constitution
No tax or duty shall be laid on articles exported from any state.
No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound to, or from, one state, be obliged to enter, clear or pay duties in another.
No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of receipts and expenditures of all public money shall be published from time to time.
No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.
Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.
No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it's inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress.
No state shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war in time of peace, enter into any agreement or compact with another state, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay.
The whole point of fractional reserve money is to implement feudalism and perpetual state sponsored war. So when the FED was formed to give private bankers control over the U.S. economy and that power was used to secretly strip U.S. citizens of assets and used those assets to Fund WWI before it started it clearly violates the provisions of article 1 especially war preparations and agreements with foregn power and military expenditures except in times of imminent danger.