This building is private property.
How the "Federal" Reserve ruined America
― Ron Paul, End the Fed
The 99th anniversary of the beginning of the end of the American government the founders so beautifully arranged is upon us. While we all so feverishly argue over how much tax to pay and who should and shouldn't be bailed out by the government, let us take time to remember that the root of many (most) of our fiscal problems in the United States are well rooted in one single piece of legislation passed just before Christmas Eve of 1913; the Federal Reserve. The name itself is a misnomer due to the fact that these regionally placed institutions are, in fact, private property run by private banks and under no oversight by Congress or any other government agency.
And so the central banking monster that so many of our founders opposed so greatly was enacted, turning over America's money supply to the hands of private banks, and has not been open to public audit since. This came only months after the ratification of 16th Amendment, which gave the U.S. Government its largest increase in central power from the founding of the nation through present time; the right of the IRS to collect taxes "on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
What is "fractional banking," and why is it dangerous? Fractional banking is, simply put, when a banking institution takes your $100 deposit and lends it out to others, keeping only a "fraction" of your money on hand. The logic behind this is to "expand" the economy and "free-up" money, but what it leads to is a hidden tax on your money called "inflation." This act also makes it impossible for everyone to get their money out of the bank in case of a "run." (Remember the scene from It's a Wonderful Life?) It's not just $100 either, but billions and trillions of dollars.
The Fed has caused massive amounts of inflation, which is when your money is worth less (eventually becoming worthless). No single point in history can be blamed on the same rate of enormous inflation as the Federal Reserve.
Economics-Charts.com
If you are looking at the consumer price index chart above and wondering why the largest increases of inflation in America didn't start really spiking until the early 1970's, it's because there's one more final nail in this coffin; removal from the gold standard in 1971. This ability to print money out of thin air with nothing to back up its worth except "confidence," combined with the Fed's ability to simply lend this already fiat currency several times over, causes the little red line to go up up up, and it hasn't stopped yet. Who are they lending money to? Why do they continue to bail themselves out? Yes.. themselves, the private banks.
Lets take an example everyone can understand. Gas, for example, isn't only expensive because of where we get it, or who sets prices. When raw oil "goes up" over $100 a barrel, for example, it didn't always "go up," but the dollar became worth less in the global exchange. And when the dollar is worth less, the number of dollars it takes to buy something goes up as well. This is a tax. If you earn $3 -worth one gallon of gas - today, and tomorrow that same gallon costs $3.15, each of your dollars was just taxed at a rate of 5% by inflation.
What is being done?
There have been several well-known proponents of an audit (and/or end) of the fed throughout history. Most notably Andrew Jackson, but in recent history retiring Congressman Ron Paul, who's last major action of his final term was to introduce H.R. 459, the Federal Reserve Transparency Act, which would allow a Congressional audit of the Fed. This bill passed the house, but Senate majority leader Harry Reid (D-NV) refuses to allow discussion or a vote on his floor.
What can I do?
If you'd like to become involved, or learn more about the dangers of fractional banking and fiat currency the best way to do that is to become educated. Also, call your Senator and tell them you want a discussion and vote on H.R. 459/S. 202 now.
Suggested Reading:
"The Creature from Jekyll Island: A Second Look at the Federal Reserve"
by G. Edward Griffin
by G. Edward Griffin
"End the Fed" by Ron Paul
Links:
Ron Paul is nuts.
ReplyDelete