How Andrew Jackson Freed America From Central Bank Control—and Why It Matters Now

In 1835, the United States was debt-free for the first and only time in its history. This remarkable achievement was made possible by the determination of President Andrew Jackson, who waged a fierce battle against the country’s central banking system—then embodied by the Second Bank of the United States. Jackson’s resolve to rid the nation of its debt and free it from the shackles of central banking had long-lasting consequences, which continue to resonate today. In this blog post, we’ll examine Jackson’s victory over the central bank, the impact of his actions, and why his stance against a debt-driven economy remains relevant in the face of today’s soaring national debt and centralized financial control.

Jackson’s Fight Against Debt and Central Banking

Andrew Jackson’s presidency was marked by his staunch opposition to the Second Bank of the United States, which he saw as a corrupt institution that served the interests of the elite at the expense of the American people. Jackson understood that debt enslaves a nation to its creditors, and that a debt-free country could enjoy true economic independence. To him, the national debt was not just a financial burden, but a moral failing—a "black magic" that threatened the nation’s sovereignty.

When Jackson took office, he faced a significant financial challenge: the United States was deeply in debt. But Jackson was determined to erase the debt and to dismantle the power of the central bank, which he believed was undermining the economy and creating an unfair power dynamic between the banking elite and ordinary citizens.

Paying Off the Debt Without Income Tax or Printing Money

Jackson’s solution to the national debt crisis was both bold and unconventional. He could not rely on a federal income tax (which did not exist at the time and was considered unconstitutional), nor could he resort to printing money—a practice that would have created disastrous inflation (much like what we see today). Instead, Jackson relied on tariffs and excise taxes to generate the revenue needed to pay down the debt. He also made significant cuts to federal spending, vetoing unnecessary government expenditures and prioritizing fiscal responsibility.

By January 1835, Jackson had successfully paid off the entire national debt, making the United States debt-free for the first and only time in its history. However, Jackson’s victory was short-lived, as the political and economic forces behind the central bank would soon fight back.

The Rebirth of Central Banking: The Federal Reserve

After Jackson’s success in dismantling the Second Bank of the United States, central banking was deeply unpopular in America for a time. However, central bank advocates found a way to rebrand and reintroduce their influence. Instead of calling the new central bank the “Third Bank of the United States,” they introduced a vague and innocuous-sounding institution—the Federal Reserve.

The Federal Reserve, established in 1913, was designed to perform the same functions as its predecessors—controlling the nation’s money supply and managing inflation—but under a different name and structure. Despite Jackson’s victory, the elite managed to once again consolidate power through the banking system, and many Americans were unaware of the true nature of this new institution. Ironically, Jackson’s face was placed on the $20 Federal Reserve Note in 1928, a symbolic gesture that many central banking advocates likely saw as a jab at one of their most steadfast opponents.

The Consequences of Central Banking and Debt

The Federal Reserve system, though more opaque and seemingly more integrated into the economic structure, continued the same destructive policies that Jackson fought so hard to end. Over time, the U.S. national debt began to grow again, and by the 20th century, the nation’s debt had spiraled out of control. In fact, it took only 146 years after Jackson paid off the debt for the U.S. government to reach its first trillion-dollar deficit.

Today, the national debt stands at a mind-boggling sum, approaching the trillions. The current government’s ability to pay its debts relies on the continued expansion of the money supply and the power of the Federal Reserve to print money at will. However, this system is unsustainable. The debt continues to balloon, and the U.S. economy is becoming increasingly vulnerable to the economic consequences of reckless spending.

The Modern-Day Relevance of Jackson’s Actions

Fast forward to today, and the financial situation in the U.S. has only worsened. The U.S. federal debt has now reached over $30 trillion, with no end in sight. The U.S. government is spending trillions of dollars annually, yet there is no effective solution to the growing national debt. Instead, the central bank, under the guise of managing the economy, continues to print money, further diluting the value of the dollar and creating a cycle of inflation.

In this context, Jackson’s fight against centralized monetary control and his vision of a debt-free America take on even greater significance. Jackson understood the dangers of unchecked debt and central bank power, and his actions were a direct response to a system that enriched the few while burdening the many.

Protecting Yourself from Today’s Debt-Driven System

As Jackson fought to protect the sovereignty of the American people from the oppressive forces of central banking, modern-day citizens face similar challenges. The Federal Reserve’s policies of money printing and debt accumulation are eroding the value of the dollar, and the wealth gap between the elite and the general public continues to widen.

Precious metals like gold and silver offer a potential safeguard against these economic forces. Unlike fiat currencies, which can be manipulated by central banks, gold and silver are tangible assets that hold intrinsic value and have stood the test of time as stores of wealth. As the value of the dollar continues to be undermined by inflation and debt, these metals provide a hedge against the financial instability that Jackson’s warnings still echo today.

Conclusion: The Legacy of Jackson’s Victory

Andrew Jackson’s battle against the Second Bank of the United States was more than just a fight against a financial institution; it was a fight for the freedom and independence of the American people. By eliminating the national debt and dismantling the central bank, Jackson temporarily freed the nation from the grip of financial elites. His actions showed that a country could live without excessive debt, and that financial independence was not just a dream—it was achievable.

Today, as the U.S. faces an escalating debt crisis and the Federal Reserve continues its inflationary policies, Jackson’s victory serves as both a warning and an inspiration. In an age of rising financial instability, the need for fiscal discipline, sound money, and protection from central bank control is more urgent than ever.

For modern investors, understanding Jackson’s legacy and taking steps to protect wealth from the dangers of fiat currency is critical. Investing in precious metals like gold and silver is one way to safeguard your financial future, just as Jackson worked to protect the country’s economic sovereignty.

As we move forward, Jackson’s example provides an important lesson: true economic freedom requires independence from debt and the corrupting influence of centralized monetary control. It’s time to reclaim that freedom.