The Black Hole of the FED
The Federal Reserve Bank is a private organization that determines interest rates and the availability of money in
. It is shortly going to be audited and examined
for the first time in its history, by a congressional committee whose chairman
is worried it is setting the nation up “for a much larger crash in
By de Andréa
September 21, 2012
The plans for a review of the Fed’s actions were announced this week by U.S. Rep. Ron Paul, who heads the Domestic Monetary Policy and Technology Subcommittee.
The hearing will focus on, among other things the Fed’s recent practice of essentially loaning money to large banks and others free, no interest at all. Who pays for that’? You do…
“The Federal Reserve is relentless in pursuing a policy of zero interest rates, as manifest by their decision last week to engage in another round of quantitative easing to keep the federal funds rate at zero for another three years,” Paul said.
Fed Chairman Ben Bernanke announced just days ago that yet another round of money would be printed by the Federal Reserve. The Fed’s third attempt at such a maneuver will involve having the already bankrupt Federal Government buy $40 billion in failed mortgage-backed securities per month, with no set end date, sending the Government spiraling down even faster into a hopeless abyss. Do you know the definition of INSANITY? Doing the same thing over and … Aha!
The central bank says its objective is to keep interest rates low, and thus trigger more spending and more hiring. But the truth is, the Fed has been trying to destroy the economy for the duration of Barack Obama’s tenure in the White House with its usual tool of lowering interest rates – it has been effective in its destruction since those rates have been approaching zero for most of that time. But if one would want to save the economy instead of destroy what is left of it, one would simply step aside and let the interest rates float. The price of money is just like any other commodity, in a free capitalistic economy it should be competitive… not controlled. Jimmy Carter tried price fixing with gas prices and we had gas shortages. Price fixing with money does the same. This is why money is so tight, banks are not loaning, because there simply is no profit in it at the fixed low rates. Gas Shortages…Money Shortages. Remember in order to “fundamentally change
America” as Obama said he would, he will
have to destroy the present . That’s the America by the way that used to be
the richest NATION IN THE WORLD! The old way was a good way! America
Paul for years has advocated a full audit of the Federal Reserve, (if not its abolition) which routinely shrouds its actions in secrecy. Just last week, the U.S. House on a 327-98 vote adopted a bill that would set an audit process in motion. It now is going to the Senate, where Sen. Harry Reid previously has been receptive to the idea, although there’s no word whether he’ll take time for it now, he has likely been paid off by now.
“The Fed is intent on ignoring that their policy of low interest rates in the past brought us the financial crisis of 2008 and their zero interest rate policy of today is prolonging the agony while sowing the seeds for a much larger crash in future,” Paul said today. (Emphasis mine)
Their manipulation of interest rates is essentially price fixing (Constitutionally illegal by the way) it can only ever have destructive effects on the American economy. Artificially low interest rates continue to cause malinvestment and misallocation of resources throughout the economy. Savers and investors suffer from negative real interest rates, while the federal government takes advantage of the Fed’s zero interest rate policy to run up gargantuan fiscal deficits.
“These problems cannot and will not be remedied until the Fed stops manipulating the price of money,” he said.
The hearing is called, “The Price of Money: Consequences of the Federal Reserve’s Zero Interest Rate Policy,” and is being held as I write, today on Sept. 21st, at 9:30 a.m. in room 2128 of the
Rayburn House Office
Building in . Washington
Among those expected to testify are James Grant, editor of Grant’s Interest Rate Observer, and Lewis E. Lehrman, senior partner, L.E. Lehrman & Co.
Paul long has argued that the Federal Reserve simply is illegal. Some of his concerns have revolved around Article 1, Section 8 of the Constitution, which assigns to Congress and the U.S. Treasury the right to coin and print money.
There is no mention in the Constitution of a central bank, and though previously tried, it wasn’t until the Federal Reserve Act of 1913 that the current Fed was created.
Paul previously has said, “Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the
dollar. Since 1913 the dollar has lost over 95
percent of its purchasing power, aided and abetted by the Federal Reserve’s
loose monetary policy.” United States
And he’s proposed repeatedly the idea of auditing the Fed to determine exactly what it has been doing and then begin making corrections. With a book titled “End the Fed,” he’s made no secret of his ultimate goal.
It was longtime Federal Reserve chairman Ben. S. Bernanke who admitted as much. “Despite the varied theories espoused by many establishment economists, it was none other than the Federal Reserve that caused the Great Depression and the horrific suffering, deprivation and dislocation America and the world experienced in its wake,” Said Bernanke.
Bernanke said it was the Fed that caused the Great Depression, the worldwide economic downturn that persisted from 1929 until about 1939. It was the longest and worst depression ever experienced by the industrialized Western world. While originating in the
it ended up causing drastic declines in output, severe unemployment and acute
deflation in virtually every country on earth.
According to the Encyclopedia Britannica, “the Great Depression ranks
second only to the Civil War as the gravest crisis in American history.” U.S.
History records that in 1913 President Woodrow Wilson approved the Federal Reserve Act but later reflected that his actions “unwittingly ruined my country.”
THE BOTTOM LINE: The Fed as it is called has nothing to do with the Federal Government. It is a Private Stock owned Bank part of what is called the international Central Banking System. The manipulation of money and the world economy is what has made the Central Banking System wealthier than the economy of any country. It finances wars and is powerful enough to manipulate the outcome. In other words it controls…history!
For a fundamental history lessen on the Federal Reserve Bank and the Central Banking System, the Fraud, the manipulation, and the Cover-up of the Federal Reserve Bank. Go to a research study called the “The Federal Brief” This didn’t just happen over night. This is old and forgotten history. But it is why we are in the financial and economic mess we are today, and may never recover from. The cycle of criminal fraud, except for ‘one’ American President’s efforts that may have cost him his life, just continues unchallenged and unabated. That is until now… Remember Bernanke said the “Fed caused the Great Depression”. It caused this Great Recession as well. Moreover, the Fed does whatever it wants and that is to build an empire of MONEY AND POWER!
We could get rid of the National Debt simply by getting rid of the Federal Reserve Bank.
THE BOTTOM LINE: You do know that history repeats itself, especially if one continues to do the same thing don’t you? Well the economic collapse that is happening right now is nothing but the insane ignorance of history, both the reason why it happened and the reason why it is not recovering. Garbage in garbage out!
As Bernanke said “it was the Fed that caused the Great Depression”. Well the Fed caused this Great recession as well and for the same reason. And if we continue to do the same destructive thing, our capital economy will never recover. Obama is doing all the right things to (as he said) “fundamentally Change
America” into a . Socialistic State
If you don’t want to be totally dependant on government scraps, if you like your freedom, if you like doing your own thing, you might want to think about supporting Ron Paul in investigating the Federal Reserve Bank. Moreover you might want to educate yourself about the history of the so-called Fed so you aren’t ignorantly dependant on the very people that lie and deceive you.
Just a thought…
There may be more answers to your questions about the secretive complicated Federal Reserve issue in books like “End the Fed,” by Ron Paul. “No More National Debt” by Bill Still, and “The Case Against the Fed” by
Murray N. Rothbard. And then
there’s the historical study called “The
Federal Brief” by 'yours truly' which you
can download free.