Today the American dollar is only worth 4 cents compared to when the Federal Reserve, the same Federal Reserve System that is on every dollar bill you carry, gained control over our currency in 1913. Now that unelected bureaucrats have the ability to manipulate the currency base, a look back at history lends a deeper meaning to Federal Reserve Chairman Ben Bernanke’s 2002 statement that, “The U.S. government has a technology, called a printing press, that allows it to produce as many dollars as it wishes at essentially no cost.” This secretive, independent central bank, which is also against the original intent of the constitution, gives the private Fed the ability to create the booms and busts we have recently experienced in our economy. The Federal Reserve is heavily used as a bailout system, propping up failing businesses and banks that, in a freer market, would normally be left to bankruptcy court enabling new investors to invest while changing the structure of management. These bailouts enable business men and women who failed to keep their jobs, further oligopolizing the industry discouraging future competition. When artificially lowering interest rates, the Federal Reserve sends a signal to banks to borrow money which encourages consumption over savings. Savings is needed for investment and for economic growth. Instead, the Federal Reserve encourages consumption which leads to an artificial boom as money pours into an economy that is already 70% based on consumption. In many cases, the Federal Reserve simply makes loans to auto dealers and wrecklessly encourages banks to lend money through “free” money assistance programs such as TALF and TARP, an additional direct assault on the 10th amendment.
This corporate welfare system gives protectionism to big inefficient corporations and businesses while obligating the taxpayer to these mal-investments. The Federal Reserve was originally created by bankers for protectionism of their investments knowing that the Fed could be the lender of last resort. Protecting these inefficient companies only prolongs the amount of time these toxic assets will be held, tying up capital that could be used in a more efficient manner. This entire time, the People are not allowed to know where their money is going and the minutes of the Fed’s closed door meetings are not released to the public for 5 years. On July 21st, 2009, Ben Bernanke admitted that $2.2 Trillion dollars, 15.9% of America’s Gross Domestic Product (GDP), was lent out to failing institutions yet he refused to say whom the money was being transferred. This is the same Ben Bernanke who stated in 2007, before the recession, that, “The fundamentals of the economy are sound.” According to Bloomberg who recently filed suit with the Federal Reserve for transparency issues, “The U.S. has lent, spent or guaranteed $11.6 trillion to bolster banks and fight the longest recession in 70 years.” The Federal Reserve levitates money from the poor and middle classes to businesses through future inflation taxation that most citizens simply fail to realize.
For every action, there is a reaction. For the action of printing money, the reaction is inflation, a hidden tax to most. Imagine for one second that you can buy 10 McChicken sandwiches for $10, this is a 1 to 1 trade. Now imagine the Federal Reserve creates 2 additional dollars out of thin air. This leads to a price increase in which $12 is now required for the same 10 McChickens. This injection of 2 un-backed dollars reduces the value of each dollar already in the system without creating any new wealth, it is simply printed money that devalues the rest of the money supply. The price of each burger has now increased 20% over its previous market value without any additional production. In many cases consumers falsely place blame on the market not realizing the root of the added cost is central bank inflation.
On Feb. 26, 2009, Congressman Dr Ron Paul introduced legislation into the House of Representatives titled HR 1207 which aims at opening up transparency at the Federal Reserve. HR 1207 would allow the Government Accountability Office (GAO), also known as “the investigative arm of Congress” or “the congressional watchdog”, to examine the Federal Reserve’s activities, removing most or all of the restrictions currently pending. This would open up the bag of toxic assets that is currently being hidden from the taxpayers while exposing the Federal Reserve’s connections and dealings with foreign central bankers. Taxpayers deserve to know which failing institutions they are propping up through the Federal Reserve’s monopoly control of their currency. HR 1207 now has over 295 Congressional co-sponsors and it’s first hearing was Friday morning Sept. 25, 2009. Speculation is brewing that an audit might lead to the eventual end of the Federal Reserve.
“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.”
FREEDOMBOOK, Liberty facebook alternative:
PFP Freedom Hour TV Saturdays 9-10pm:
Don’t forget to check out our Radio shows:
PFP Movement Radio Fridays 6-8pm http://www.blogtalkradio.com/pfpmovementradio
Mike Shanklin Radio Tuesdays 6:30-7:30pm http://www.blogtalkradio.com/michael-shanklin