Aesop (620-560 BC)
We hang the petty thieves and appoint the great ones to public office.
This Atlanta Journal Constitution letter to the editor is in response to Sal Inserra’s July 5, 2009 AJC article Who is to blame for financial mess? and Bob Keefe’s May 26, 2009 AJC article Isakson panel will probe economic crisis.
Mr. Inserra says we should look in the mirror. He says we spend money we don’t have on things we don’t need. Who does he think we are, members of Congress? Senator Isakson says a $5 million presidential commission is needed to cut through the financial fog.
As fantastic as it seems, a partner level CPA and a U.S. Senator expect us to take the naïve position that they are clueless about the Federal Reserve’s policy of currency debasement and the effects of such policy.
Make no mistake; the Federal Reserve and its counterfeiting monopoly machine, known as “fractional reserve banking,” created our economic pile-up. The Federal Reserve is a central bank. It was authorized in 1913 by the U.S. federal government. It is privately owned.
Governments grant central banks the monopoly privilege to issue and control a nation’s currency. In exchange, central banks make unlimited funds available to the authorizing government in the form of loans. Central banks purchase government debt.
The Federal Reserve is in collusion with the U.S. federal government. Politicians protect bankers and bankers slobber money all over politicians. Who says “Money doesn’t grow on trees?” Do you really think legal counterfeiting can be policed by the perpetrators?
Just like water, the flood of new money has to go somewhere. New money has been flooding into finance, insurance, and real estate for years. This is called the FIRE economy. The new money benefits those that get their hands on it first (the banks), but ultimately the new money simply bids up prices as it destroys our purchasing power.
This immoral partnership worked great until: individuals ran out of monthly cash flow, strip malls ran out of tenets, banks ran out of borrowers, effect was insulated from cause (too big to fail), and leverage began to work backwards. The economic distortions and excessive debt purposely created by government and the Federal Reserve must be worked out of the system before our economy can recover.
In 2006 I advised Senators Chambliss, Isakson, Congressman Linder, and other members of Congress. “The ‘reset’ button is being pushed whether we like it or not. This is similar to the dissolution of the USSR. The only difference will be the scale of impact. The dissolution of the dollar-oil empire will have world wide impact. Economic law and moral truth cannot be repealed; and they will not remain on the sidelines indefinitely.”
There’s no financial mystery here. Legal theft has finally run out of rope. Others agree.
George F. Smith (in 2009)
The Fed is a racket—a con game writ large-what else can you call an organization with the exclusive privilege of printing money in the trillions and handing it over to friends [banks]? If this is true, what does it say about the state, the organization that created and sanctions it?
Gary North (in 2008)
I have found that the economists who defend central banking do not explain why a cartel in banking is in the public interest but cartels in every other area of the economy are not in the public interest.
Rob Kirby (in 2008)
When we stop to consider that the Federal Reserve is no more ‘federal’ than Federal Express and they have no ‘reserves’–owing to the fact that they create money ‘out of thin air’–the name ‘Federal Reserve’ itself is a misnomer and purposely given this moniker as a deceptive means; to make its creation more palatable to lawmakers since the framers of the U.S. Constitution were dead-set against the institution of Central Banking.
Lew Rockwell (in 2007)
Without sound money, there is no protection for savings and property, nor capital accumulation, nor long-term investment, nor entrepreneurship, nor social advance. Without the right to own and control property, we have no real say over our lives.
Ron Paul (in 2006)
When the Federal Reserve increases the supply of dollars in circulation, both paper and electronic, prices must rise eventually. What other result is possible? This flood of newly minted US currency can only increase consumer prices in the long term.
Mogambo Guru (in 2005)
Do you think the French Revolution happened because prices for consumer staples deflated after their government printed up all that money? You think that the misery of Weimar Germany was caused by food being cheaper after the government printed up all that money?
Lawrence Parks (in 2002)
In effect, our monetary system constitutes institutional stealing. And, just as the Nazis passed laws to make their actions legal, the financial sector has, in a similar, but in a much more sophisticated way, perverted our political system.
Friedrich A. Hayek (1899-1992)
With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.
Daniel Webster (1782-1852)
Of all the contrivances devised for cheating the laboring classes of mankind, none has been more effective than that which deludes him with paper money.
Daniel Webster (1782-1852)
We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.
Thomas Jefferson (1743-1826)
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [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.
Money, Banking and the Federal Reserve Board
This is an outstanding 42 minute video that explains how The Fed creates money out of thin air. The video features Ron Paul, Hans-Hermann Hoppe, Joseph Salerno, and Lew Rockwell.