I’ve been reading “The 5000 Year Leap,” a book about the principles the Founding Fathers espoused which inspired the formation of the Constitution. Coincidentally I had been reading the chapter about “Free Market Economics” when I was directed to the article I quote below—but in this chapter the author (Cleon Skousen) describes how it had been Thomas Jefferson’s desire to set up the United States so that Congress (not private banks) controlled the issuance of money. Sadly, his desire was never fully implemented in the U.S., and pretty much from day one, because of bad policy amidst an economic depression, the issuance of money was turned over to a private consortium of bankers, and later to the fed, another private bank.
Jefferson seems to be calling from the grave with disapproval:
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will 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. “
Let’s not forget that the Constitution states that coining money and regulating the value of money is limited to Congress, and that states shouldn’t allow anything but gold and silver to be accepted as legal tender. The reason is ecnomic stability. If we have a private banking institution controlling the money it then has the power to manipulate markets and they’re no longer “free markets.” Now more than ever, the time has come to be critical of this private banking institution that manipulates our economy.
Currency Trading.net has a well-written article detailing “10 Reasons to Be Critical of the Federal Reserve.” Anyone wanting to understand the perils of a private bank (the fed) controlling the issuance of our money should read this entire article. The fed is the problem, not the solution to our economic woes. Here is an excertpt from the article:
. . . Former Fed chairman Alan Greenspan’s tenure was marked by aggressive interest rate cuts, beginning after the stock market crash of 1987. That initial move helped to prevent wider economic consequences, but rate cuts in the late 90’s made startup capital too easy to come by and helped cause to the dot-com bubble. Similarly, failing to raise rates in the past few years encouraged the wave of short-sighted, frenzied borrowing that ended so abruptly in 2007.
. . . Financial stocks have been justifiably hammered in recent months, but the Fed’s recent economic interventions are tailored to bailing them out first. As one critic has noted, “It has not been lost on the Wall Street titans that the government is the reliable first responder to scenes of financial distress, or that there will always be enough paper dollars to go around to assist the very largest of financial institutions” (see next link). Bear markets must coexist with bull markets in a truly free market, but the Fed seems bent on eliminating all but the upside. That might work in the short term, but not long afterwards. Moreover, it’s not capitalism at all, but a sort of “socialism for the rich.”
. . . No survey of criticisms directed at the Fed can be complete without mention of the seemingly radical argument that the Fed should not exist at all. Proponents of this view, most of whom come from the “Austrian School” of economics, believe the very basis of current monetary policy is flawed. They think all dollars should be backed by an asset like gold, as they theoretically were until as recently as the ’70s, or at least exist in the reserves of banks. The “fractional reserve” system the Fed now oversees, in which only a small amount of the money supply can readily be withdrawn from banks, causes an artificial business cycle of “booms” and “busts.” The most prominent Fed abolitionist these days is Presidential candidate Ron Paul, who squarely blames the existence of the Fed for the economic events of recent months.
I reccomend reading the article in it’s entirety.
Click here to send a message to your Congressman to support the abolition of the federal reserve system!
Also see our related post: The Federal Reserve is Debasing the Dollar
Filed under: constitution, Economy—US Dollar, liberties, Ron Paul | Tagged: 2008, banks, economic solutions, economy, Election, federal reserve system, financial policy, fiscal policy, monetary policy, money, news, politics, private banks, Ron Paul, Ron Paul 2008, spending |