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The CATO Institute Finds That The Fed Must Be Abolished
A must read paper from George Selgin and the Cato Institute, which confirms what Zero Hedge has been saying since inception: the Fed must be abolished immediately: "The Federal Reserve System has not lived up to its original promise. Early in its career, it presided over both the most severe inflation and the most severe (demand-induced) deflations in post-Civil War U.S. history. Since then, it has tended to err on the side of inflation, allowing the purchasing power of the U.S. dollar to deteriorate considerably. That deterioration has not been compensated for, to any substantial degree, by enhanced stability of real output... A genuine improvement did occur during the sub-period known as the "Great Moderation." But that improvement, besides having been temporary, appears to have been due mainly to factors other than improved monetary policy. Finally, the Fed cannot be credited with having reduced the frequency of banking panics or with having wielded its last-resort lending powers responsibly. Its record strongly suggests that the Federal Reserve‘s problems go well beyond those of having lacked good administrators. Although it has manifested itself in different ways during different decades, the Fed‘s failure has been chronic. The problems appear to reside with the institution, and not with particular personalities who have been placed in charge of it. Hence the record would not be likely to improve substantially even with complete turnover in the Board of Governors. The only real hope for a better monetary system lies in regime change."
“No major institution in the U.S. has so poor a record of performance over so long a period, yet so high a public reputation.” Milton Friedman (1988).
Ending the Fed is the only hope America now has. The outcome will be painful, but it will be surmountable. The alternative is the unquestionable end of America's status as a superpower.
Has the Fed Been a Failure? (pdf)
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"...Its record strongly suggests that the Federal Reserve‘s problems go well beyond those of having lacked good administrators..."
Like what? An out-right and organised fraud against the middle class of America?
Say it ain't so!
I think the bankers went fox mad, like when a fox enters the hen house he will kill all hens not only those he can eat thus, I think it's a 'base race'(for those who play RPGs) either the Country or the Fed, me personaly if I was living in the US I'd be looking for a new citizenship, good for me I am living in Germany which is the sanest loonatic in the European asylumn now :)
That still makes you batshit crazy; there are no winners in a poop fight.
Ofc that was my point
Azannoth. You have no idea how many of us have already considered emigration. The 2008 election was the most inexplicable event in my life. If THAT was America...
We may be down but we are not out yet. YET. Very little sand left in the clock.
Not that my guy won in 2008, but at least there was a clear winner....how do explain 2000?
I voted for Harry Browne in 2000. But Bush was the clear winner (by electoral college vote, which is how presidents are chosen in this Republic). No one really disputes that. Al Gore would've accelerated our collapse; not saying that's good or bad--but he was a white Obama-in-waiting.
I beg to differ on the "no one really disputes that" claim. Greg Palast did a pretty excellent writeup on the 2000 election in "The Best Democracy Money Can Buy". The Florida Central Voter File(1) is a good place to start on the controversy. Also I doubt Mr. Gore could've done any better of a job of collapsing the American emprire then dubya and his neocon cronies did.
*1: https://secure.wikimedia.org/wikipedia/en/wiki/Florida_Central_Voter_File
Team Gore tried to steal it first with the premature victory call, among other things http://www.papillonsartpalace.com/algores.htm
Then Bush stole it back.
Basically, the better thief won. Guess who was the loser, no matter WHO won?!
Wake the fuck up.
Took me a couple weeks to process and come to grips with it....haven't been right since. Oh, I know, it's probably because I'm a RAAACISSSST. That's gotta be it. /sarc
Nuthin' but bad options, all around us. However, if knowledge = power, then ZH = noetics.
A brief mathematical analysis of the Fed operation, detailing the inherent self-destructive nature of the Ponzi scheme, and its fraudulent nature, is posted at
http://www.conspiracyarchive.com/Blog/?p=3908
Where were you when the FED was keeping interest artificially low to prop up the housing market, so every greedy middle-class American could get himself a big house and use its ever increasing value as his personal ATM machine so he could goble up all the world's wealth and squander his children's future? I didn't hear any complaints about the FED and US bankers in the 1990-2006 era when the REAL crime was being committed. Hypocrites.
No, being hypocritical includes professing feeling or virtues one does not have or believe in. Most average Americans believe the problems they are witnessing are happening in real time, and are due to current problems, because that is how we are trained to think. Ignorant? You can call us that all day, but hypocritical not so much. Though I didn't see many "educated" and, "enlightened" Europeans burning, and rioting, before the recession. Now who is being hypocritical? Knowing about a problem and keeping your mouth shut so the money keeps rolling in and then jumping on the accusation bus is bullshit.
Oh yes, and we "greedy" middle-class Americans are the ones which fund most charitable organizations at home and abroad. So as you contemplate Obama as the worlds "Hope and Change" candidate remember when the middle-class American money dries up charities world wide will suffer. An example of Europeans being Hypocritical would be supporting, Obama to get him elected, and now bad mouthing Americans because we elected him... I voted for Ron Paul who did you support?
Like playing victim and blaming the bankers for problems that were equally of the people's and the government's creation..
Then they are doomed to repeat the same mistake of easy money policy again and again.
That's a myth. On a per-capita basis, Europe and Canada are quite a bit more generous. See http://www.cgdev.org/section/initiatives/_active/cdi/
(and that is not counting America's 60+ years of 'colonizing' the rest of the world through its US dollar. Put some ink on a bit of paper, exchange it for valuable products and resources from abroad, and shut the windows and lock the door when those people want to redeem them).
I don't. I think he has disappointed many people including his own voters. The US could do many things to radically improve its situation and rebuild confidence among its people and its financiers - e.g. build large numbers of thorium reactors to wean itself off foreign oil and to have infinite amounts of cheap, safe and clean energy to rebuild its economy. That's the sort of initiative that a TRUE leader, who dares to defy the short-term interests of the oil industry, would take.
I think you are referring to the time when the FED was keeping interest rates artificially low to keep the MULTI-TRILLION DOLLAR gravy train for the investment bankers rolling while they saddled the middle class with a mountain of worthless debt!!!
You are a piece of shit cumstain who really doesn't have a clue what really happened as the real wealth of retirees pension funds was being STOLEN by the financial terrorists on Wall St. You know that is who bought the mortgage backed securities right?
Did you read the latest effort by Matt Taibbi in the Rolling Stone?
Sanctimonious asshats like you REALLY piss me off!
So, do you agree that THAT was when the real crime was committed? And that nobody was complaining when it happened because the gravy train benefitted everyone - either directly through nearly unlimited credit, or indirectly through a thriving economy and ever increasing salaries?
I hate how the bankers are still filling their pockets while so many others, including the US government, are in dire straits. But if it wasn't for the FED's inflationary policy, things would be looking a lot worse right now for the middle class - think mass bankrupties in the private sector, mass unemployment, crashed stock- and housing markets. All that may still be ahead but for now, the FED's policies are cushioning the blow and shifting much of the damage to Europe and Asia who financed that golden era.
This is America Danielvr.
It's bad luck if it happens to me, it's a failure of personality responsibility if it happens to the other guy.
Everyone loves pointing the finger. It's so easy!
Amazing misdirection artistes, they have unilaterally decreed a 90% tax on US saver's interest expectations. They call it ZIRP and enticed the paradigmatically- blinded with poisoned and trap-door eligibility for low mortgage rates based on infinite slicing of the ever-growable housing cake, so it goes down without the normal gagging response.
They step in front of our saving trade and dividend collection and create their own new equal-looking and completely dilutive as a further rip to US savers paper to use for their member banks to collect every bp of the spread or rent on the fake money and the people are shut out.
You will find panels of these nitwits on MSM unable to contemplate modern finance without the Fed. No figure.
ok this will sound uber dumb, but if you get rid of the fed now, and keep the fractional banking system as you know it - then the fed replacement will have to be an international body - aka world body - "new world order' type stuff....i hate the understanding of the fed for all the right reasons, but it is now the only thing standing between US soveriegnty vs global (one world government).... in fact with this latest move of QE2 - the fed is actively and consciously pursuing its own demise - which leads to the question of "why"?
This is exactly what the banksters are counting on, a clueless ignorant American public that will accept any 'solution' so they can keep buying their ICraps
the fed isn't the crafting dollar policy, but the are the curtain which the wizard is hiding behind. (Pay no attention to the man behind the curtain!) The Fed monetizes the debt, they don't create the debt. So you're correct, without the veil between the real workings of vernment and the public perception there is an interface, which frankly we could do away with. We all know what a rotten thieving system we have, but it works in our favor, against global forces, (though not very well obviously as the Chinese have fucked us royally, but we let them, our own fault) but sure abolish the Fed in the interest of transparency.
But David Rothschild is sooooo cute with his scruffy good looks. Have you read some of his proposals? Why shouldn't we all surrrender our liberty to a ruling elite when it's proposed by such a hottie? I hope he's on Dancing with the Stars.
http://en.wikipedia.org/wiki/David_Mayer_de_Rothschild
"Why shouldn't we all surrrender our liberty to a ruling elite when it's proposed by such a hottie?"
As long as they make the world safe for Volvo drivers ;-)
Yes...that was sarcasm.
must be nice to be so rich that when you take a shit on the rug, people applaud.
He says Saturn and Jupiter are closer to the sun than the earth...that's very...um...interesting.
and people still believe in potent directors?
He wants to rule the world but can't get the order of the platents correct, than again so do most of the public so I guess you get what you deserve
Of course the fractional reserve credit extention and exposure need to be more closely subject to growth rates as in the hold-your-own-originations ratio.
The tail doesn't wag the dog...the Fed may make bubbles worse, but they are not the initiator; pretending that abolishing the Fed will solve any of the problems with securitization, regulatory capture, or endogenous money creation is as foolish as blaming Mexicans for jobs outsourced to Beijing while shopping at Wal-Mart.
Raising interest rates would solve many problems for Americans.
That's a great idea.. It would be a blessing to spend a trillion dollars a year to service our national debt and fatten up the bankers and wealthy... Interest is usury.. I know people think it's great that having money can make you more money from the people that don't have money,,, but.. the system is a sham.. We need an ENTIRELY new system.. Period..
I'm with you there, Max. The usurious system has outdone itself, and without evolving past the money=debt idea, we won't honestly be fixing anything.
We need some deep thinking about what that new system could be.
It's easy to want to end the Fed, but not really so easy to come up with what we go with after that. I think without a good alternative or three, we will end up right in the laps of the IMF and such, exactly where they wanted us all along.
The number one cause of our problems stems from the fact that we've allowed the monetary/credit system to grow much faster than the economy during the last 30 years :
CREDIT grew at an average rate of 10% per annum, while the economy grew at an average rate of only 3.5% per annum. And most of the growth of the economy actually came from this accelerated credit growth and benefitted only the top 1% of the population.
Please consider that CREDIT is not created by the FED but by the commercial banks and the shadow banking system, the FED just being an instrument of this network of debt creators. It's a tool, and a tool controlled by them. Getting rid of the tool and leaving the banking cartel intact won't change a thing : they'll come up with a new tool immediately thereafter. And chances are abolishing the FED without thinking of what's comming next will just accelerate the worldwide centralization of money power in the hands of the IMF/BIS.
I agree that we need a completely new monetary/credit creation system, one that obeys to the strict rule that CREDIT should not grow faster than the economy (ie where CREDIT/GDP remains more or less constant). Instead we have left CREDIT grow from 180% of GDP in the 70s to more than 350% nowadays (excl. unfunded liabilities!), and this has only benefitted mainly the very few who own the banking cartel.
Whether this means abolishing the Fed is IMHO secondary. It's like building the house from the roof. WE must first agree on what that monetary/credit system must do for us, the American people. Define the requirements first, then what is the best implementation, and make sure that this is done by people who are not corrupted by the current banking/credit creation cartel, unlike most economists who are hired by them directly or indirectly and follow an economic theory, neoclassical, which was derived in the first place to benefit the banking cartel and not the American people.
But the first difficulty is that this can only be a bottom-up process. It must come from the American people who must demand it from the PTB and overthrow them if they don't respond satisfactorly. But the American people are mainly asleep... So, Zerohedgers and all people of good will, let's continue to try to wake them up!
Max, I think there is a difference between borrowing money and paying interest for say going to Vegas to do cocaine, hookers, etc. and developing the latest iCrap or MNR scanner. Not that the average american could tell the difference. The money that an individual saves represents his "delayed gratification" and I think he/she should be rewardedfor that (call it interest or whatever).
Simple truth will set you free.
IMO Correct snowball.
It is the capture of the Fed by the entities that should be allowed to fail that is the problem. I can't speak to other eras but a more severe consequence in the failure of the California Savings and Loan would have alerted the operators in the coming decades to the possiblity of severe outcomes. The LTCM bailout of the Chase was a full boat bailout of the losses at the Chase.
There must be consequences if we take actions that hurt other people. It should not be a game. Being smart or well trained doesn't make a person ethical. And even well meaning people can get lost in the matrix if no one around cares or sees.
Hank Paulson was an Eagle Scout. Boy Scouts take an oath.
On my honor, I will do my best
To do my duty to God and my country and to obey the Scout Law;
To help other people at all times;
To keep myself physically strong, mentally awake and morally straight
I have to wonder if he got "lost in the matrix."
If Hank was so great, why didn't he use his one opportunity to save the world to include justice and principle?
One could start at "be prepared."
Thats a great point. The initiator is in bed with the apologist who can't conceive with life sans partner.
It won't change, until you do...and blame yourself for not fixing yourself first.
From Bob Prechter:
Fed's Actions Create 'Hope-filled Bulls' and 'Irresolute Bears'
Our stance for years has been that the Fed doesn't lead the markets so much as follow them, and that monetary policy doesn't change the U.S. economy for better or worse. So we tend to ignore the Fed and urge others to do likewise. But as social mood grows more negative and the economy continues to flounder, even a columnist for the New York Times now dares to write about how the Fed's efforts to revive the economy are being criticized right and left.
Here's an angle, the Fed is irrelevant, so let's abolish it.
Prechter is not very talented. For him to admit the quantity of money the Fed controls matters is for him to admit that Elliot Wave can not possibly ever predict anything. So he refuses to admit dumping 2.5 trillion dollars into the economy could in any way inflate the money supply, cause inflation, and thereby throw off the X axis of his little charts. I get so tired of seeing that guy's nonsense touted as if it has any credibility or he has successfully predicted anything. Like all Elliot Wavers, Prechter is stuck in a permant "wave 5 just about to crash" mode. No matter what, his counts always show the market is days from a major crash. And when it doesn't come? New count time! If we get a correction 5 years after he started calling the top? Well he feels vindicated.
Sounds as though you are getting educated about Gurus. The better ones stop predicting when they get into a period they don't understand.
Prechter & co just changed their wave count on this recent rally because it exceeded the old high. Elliot wave is not exact and can be moulded to fit a bearish bias. The mistook the BC sequence off the last leg down as some kind of funky "zigzag" (yes they really referred to it as a "zigzag")
Elliot wave is real and it works, but like any technical method it is only a suggestion...... You can't know that what looks like an ABC countertrend is not just 2 of 5 in a primary trend.
I'm about to cancel my subscription. I think their doctrine is a bad influence on an objective mentality.
*Edit - they're also calling for a dollar reversal after two waves down. Using the actual theory on a monthly chart, this doesn't make sense and also contradicts their (now modified) stance that stocks have a 4th wave pullback and 5th wave rally soon coming....
Yikes. WTF is going on with them? Even their theory disagrees with them.
I learned under George Selgin at the University of Georgia. I took his economic class on the Theroy of Money. It was one of the best classes I took while attending my alma matter.
I remember him preaching about how the Wild Cat banking system wasn't all that bad and those Suffolk people up in Boston did a good job running the show. Propoganda from the same banking elite we suffer from today coined the term "wild cat" so they could convince the public not to put their money into smaller institutions.
As far as money is concerned, he has to be one of the top academics in the field today. He's not your typical economist. He auctually thinks for himself.
Theory
The hammer is in the tool cabinet. Use it on yourself.
I thought that was the best bit. It's on that interpretive tightrope between total incompetence and stealth mockery.
We have to appreciate how the Fed receives phenomenal gain from T-securities---and the cost to society.
Let us review how the Fed and Congress create fiat money. Congress grants a T-security to the Fed (asset) and the Fed credits the Treasury’s account (Federal Reserve Notes) as a liability. The checks written by the Treasury on that credit will then be honored by the check clearing procedure of the Fed.
[Granted, this is a vast simplification of the process. The basic accounting by the Fed can be reviewed at 2009 Annual Report to Congress by the Board of Governors from page 448 ,
http://www.federalreserve.gov/boarddocs/rptcongress/annual09/pdf/ar09.pdf and Treasury accounting breakdown is accessible at http://www.fms.treas.gov/mts/mts0610.pdf.]
Congress gets to spend the fiat money so created and the Fed holds the security and receives interest. When the security matures, the Treasury must redeem the security. The value of fiat money initially created must then be paid to the Fed and becomes gain.
The Fed has an accelerating option--it can sell the security. Arrangements are made whereby the Treasury acts as auctioneer and Primary Dealers are required to submit bids. Bids may be submitted to the New York Fed or to the Treasury. Upon maturity of the security, the Treasury redeems the security from the holder. The Fed receives the (bid) value of the security upon the sale.
By either of the two methods, the Fed has received the value of the security. The total value of all issued T-securities becomes a gain for the Fed.
The method used by Congress to redeem the security, and the interest incurred, is beyond the scope of this writing. THINK---more T-securities.
You seem unaware that the large majority of the FED's profits go to the treasury.
In our privately-held, fractional reserve banking system all money is created as debt. When a Primary Dealer (or any other bank) purchases a UST, it merely creates the FRN's out of thin air (with a minor consideration for reserve requirements). A private corporation has created money for free, and purchased an interest-bearing security backed by the future productivity of US taxpayers.
This is in direct contravention of how the framers of our country anticipated. The US Treasury has and could again issue money and currency without debt and without interest. The entire process of auctioning Treasury securities is a creation of the Federal Reserve, and enriches both them and their private banking owners.
And while a 'large majority' of the Fed's profits may go to the Treasury - what is the breakdown? How much of the profits accrue to the owners of the Fed district banks (commercial banks) through their statutory dividends? You don't know because the Fed has NEVER been audited.
Well stated Joe.
I believe I read somewhere the districts are guaranteed a 6% risk free return off of us...how this is accomplished these days is another reason to audit the Fed...the imagination could certainly run wild on that "custody chain" ;-)
Really??.. Even though the "large majority" is privately owned?.. Are you really going to try and drop that turd in the punch bowl while no one is looking?... wow
The FED funds its own operations and out of the remaining profits, it pays a 6% annual dividend to its shareholders, the large commercial banks. All the rest ($45 billion in 2009) goes to the treasury. That's what makes it so attractive for the US government to have the FED buy its bonds - the interest paid doesn't go to China or Europe but returns to the treasury.
Any modern monetary system needs a central bank. People who want to 'abolish the FED' should think twice. What is really needed is reform. Take it out of the bankers' hands, demand that it be audited. Suggestions like 'the only alternative is to give control to some foreign entity' only serve to stifle a much needed discussion among Americans on what kind of central bank they want to have and how they want to control it.
Blah blah blah.
If you look at recent media hype (including here on the hedge and vine), the Fed has been taking a real bashing. Conservatives and liberals alike, clamouring for it's demise. Tea Party, Rand Paul, Ron Paul Heading Senate Banking Committee... woo hoo....
Is the end of the Fed near? Clearly the meme is being released.
The thing to fear, if you fear at all, is what is the planned replacement? Since we, in general, are in severe decline as a species, I suggest it will be brutal. The Fed will look benign in comparison.
It is inevitable. Chipped/Exploited/Drugged/Fed/Warm or cold and free.
Which will you be?
;-)
ORI
http://aadivaahan.wordpress.com
Give Me Liberty or Give Me Death. The fear of what a replacement of the Fed would look like is simple and blatant mind-control by the PTB. If one defends a corrupt and thieving institution simply because the alternative might be worse, well, that's Stockholm syndrome.
It is in our power to control our lives and our circumstances, and change happens one lightbulb and one act at a time, until a tipping point is reached. One of our country's greatest attributes, if it still exists within us, is to fight for our freedom as people, together. Civil rights marches. Revolutions.
Yesterday, I taught my new non-TBTF bank tellers about my Strawman. I went to the coin shop and purchased all of my Christmas presents - 1 oz. silver maples, and intend to discuss the concept of real money with the recipients (without preaching too much). I now carry around a silver maple and ask certain shopkeepers if they would be willing to accept silver for payment. I use money orders to pay bills (that's government issued money).
My efforts will build over time. I am only getting started. I will refuse to accept failure. My kids depend on me for that.
"Since we, in general, are in severe decline as a species, I suggest it will be brutal."
As a "species"...ROTFLMAO!
Not in my neck of the woods ORI...maybe in yours.
This looks like something right up your alley...enjoy ;-)
http://www.youtube.com/watch?v=7UAeSsvHhTg&feature=player_embedded
Wow, the host handled that one well, but it definitely leaves me at a loss for words...
Hey Nm, thanks for the link. Now I'm wondering which story you believe. Contrail?
And I really wonder which part of the world you live in, where Homo Sapiens Sapiens is actually evolving upwards. People healthier than they were 50 years ago in your neck of the woods? Children smarter, better adjusted? Crime down? Assault against women, teen pregnencies down in them also? Good, healthy emplyment up in the last century? Air getting cleaner? Must be, how would the species evolve without?
When you walk downtown, do you see strong, hearty people, full of cheer, looking forward to the holidays in these increasingly prosperous times? You see Pastors singing paens to Allah, an equally just and mighty god? And equally wrathful god?
Hmmmmmm..... I didn't know Shangri-La had internet.
Either that, or you sir are asleep at the wheel of your own life. It's not being negative you know? It's being real.
Get real or share the address to your shangri-la.
ORI
http://aadivaahan.wordpress.com/2010/06/09/an-older-piece-pertinent/
"Hey Nm, thanks for the link. Now I'm wondering which story you believe. Contrail?"
Why none of it ORI...this is the sort of claptrap regular readers would read under another certain authors byline, who shall go nameless as a courtesy by me.
In truth, I enjoy needling you.
I don't know if it's because you have never found anything positive to say about America or her people or because you have never said anything negative about India or her people.
I can't quite place my finger on it...LOL.
But I do know this...speaking for myself and my community...we are positive, we are self reliant, crime is down because criminals have always had a short lifespan around here, we (as a group) do live longer than our parents, our kids are being brought up correctly (mine & others do have to have their thoughts modified after coming home from public schools...but we take this on lovingly & seriously), we will have Thanksgiving and Christmas as we always have (and they will be wonderful, joyous occasions, filled with goodwill, laughter & cheer), in short we will persevere as we always have.
As for this places address...I would love to give it out...but I fear it would soon be overrun by the self appointed best & brightest of the world who would wish to somehow make it even better...so no...you will have to make your own Shangri-La where you currently are...as has always been the case throughout time ;-)
Hey Nm.
I got it. You must be Amish.
As for India, or my views thereof/Thereon:
http://aadivaahan.wordpress.com/2010/07/13/whither-india/
And for Americans and how I care, not think about them...
http://aadivaahan.wordpress.com/2010/07/04/an-open-letter-to-all-gom-residents-and-beyond/
Written on the 4th of July.
Now I suggest you take your sanctimonious, judgemental needling and shove it.
;-)
ORI
"I got it. You must be Amish."
LOL...no.
"As for India, or my views thereof"
Well...I finally bit on it & peeked inside. Change comes slow sometimes ORI, your country was under a colonial power (the same nation as mine) for many years...we threw it off, as did yours...ours went free market, yours socialist. There is the difference...it takes time.
Yes, we have crooks & thieves in high places just the same as you...but men of good character can change this...it takes time.
"And for Americans and how I care"
"You are on the front-line. The reasons for why you get to be on the front-lines for all of humanity might be because you are resilient. You are people of the ocean, used to it’s power and it’s vagaries."
So you do know where I am and what we are ;-)
As for the rest...it appears you did read the author I refused to mention & often with regards to the oil spill...he was wrong...dead wrong, just like those who live here said he was at the time.
The earth did not split open...the region did not evacuate...we did not let the hyperventilating rantings of leftist doom & gloom grip us into us giving up our lives, property, possessions to the state or anyone else...because we are all the things you describe.
We are free and we delight in giving the middle finger to all who would subjugate us under good premises or bad.
"Now I suggest you take your sanctimonious, judgemental needling and shove it ;-)"
Now ya got it baby.
http://www.youtube.com/watch?v=bng3agUOYiI
Hey NM, on dial up, so no youtube for me.
But I hear you. We have different opinions, is all. Which is as it should be.
As I've said over and over, we are all in this together anyways.
I hope, for your collective sakes that everyone was indeed wrong about the GOM.
ORI
http://aadivaahan.wordpress.com
"Hey NM, on dial up, so no youtube for me."
It was...Jimi Hendricks-All Along the Watchtower...it's a good eye opener first thing in the morning...LOL.
"As I've said over and over, we are all in this together anyways."
Yes we are sir.
"I hope, for your collective sakes that everyone was indeed wrong about the GOM."
Like I tried to tell the author...the GOM has natural oil seeps, it also has little microbes that actually eat oil, they only live in warm water and of course they can't eat all of it at once...but they'll take care of whatevers left, once they replenish themselves from do gooder idiots dumping toxins all over them.
We're fine...hope ya'll are well also...and never let the bastards beat ya down ;-)
Take care.
;-)
All good and as it should be NM.
At least we get front row seats for the show!
ORI
"They tell us, sir, that we are weak; unable to cope with so formidable an adversary. But when shall we be stronger? Will it be the next week, or the next year? Will it be when we are totally disarmed, and when a British guard shall be stationed in every house? Shall we gather strength by irresolution and inaction? Shall we acquire the means of effectual resistance by lying supinely on our backs and hugging the delusive phantom of hope, until our enemies shall have bound us hand and foot? Sir, we are not weak if we make a proper use of those means which the God of nature hath placed in our power. The millions of people, armed in the holy cause of liberty, and in such a country as that which we possess, are invincible by any force which our enemy can send against us. Besides, sir, we shall not fight our battles alone. There is a just God who presides over the destinies of nations, and who will raise up friends to fight our battles for us. The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave. Besides, sir, we have no election. If we were base enough to desire it, it is now too late to retire from the contest. There is no retreat but in submission and slavery! Our chains are forged! Their clanking may be heard on the plains of Boston! The war is inevitable--and let it come! I repeat it, sir, let it come.
It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace-- but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!"
Excerpt - Patrick Henry, March 23, 1775 - full text here: http://libertyonline.hypermall.com/henry-liberty.html
These fucking idiots (Fed Governors) have practically destroyed out country.
They destroyed the country, and now they're making things much worse in their efforts to "repair" their destruction. They should just STAY OUT of the markets.
84 Pages! I'll read it after the football game. One of those guys is from Geo. Mason. Did the CIA approve of this?
This has likely been posted somewhere on the ZH threads already, but it's one of the best xtranormal animated shorts yet... Quantitative Easing Explained
http://www.youtube.com/watch?v=PTUY16CkS-k
I don't see how anyone can come to a different conclusion, even with the most brief glance at their overall performance. The same goes with every central bank in the U.S. Check out "The Case For Gold" by Ron Paul and ?(I forget), and you will see the history of banking in general in this country, and see what conclusion you come to. Almost EVERY EFFIN BANK since this country's inception has had to get bailed out by the federal government. I am talking since the very beginning. ALL of them have consistently ripped off We the People since the very beginning. And every central bank we have had in this country has only served to multiply the banking crimes. I don't thin the FED is irrelevant as the poster above has quoted Bob Prechter as saying... the FED is completely relevent to ALL our financial, political, and social woes. Foriegn and domestic. Think about what they have done to our money and it's worth. Think about what they enable our government to do. We need to deal with them with EXTREME prejudice.
Great paper! (And a great relief to find the last 30 pages were references and graphs!)
End the Fed? Hell yeah!
So get rid of modern Central Banking and replace it with what exactly?
Not to be over simplistic, but FREE MARKETS would be a nice substitute.
Yes, and accountability would be a nice change.
Accountability implies transparency. These objectives are absolutely inverse of incorporation which exists to prevent precisely these two objectives.
There are NO FREE MARKETS today!
You abolish the Fed today, without a highly regulated banking industry, you're FUCKED WORSE.
ZH readers need to think hard and ahead on this one. It should lead you right back into conflict with CATO....regulating banks.
CATO wants private fractional reserve banks, totally unregulated, to be in the lead seat.
That's why some anti-Fed folks (like me) are getting real circumspect about this sudden push to rid the FED by the financial elite and the PTB. The international banking elite is threatening the U.S. FED, not because of 1982 thru 2008, but their reaction to it.
Disagree to a certain degree. If you eliminate the Fed, you eliminate the Federal Reserve Note. That, happily, throws the entire current banking system apart. I think it would be FAR more likely that you will end up with a (constitutionally appropriate) US Treasury issued dollar (Greenback) then some sort of one-world currency.
In fact, I'd be more willing to bet the whole one-world thing is a psy-ops by the PTB to keep us inline.
End the Fed and you end the FRN. There's more awareness and attractiveness to a Greenback. Individuals and companies will emerge to create PM-based currencies for those that desire it.
Join those threatening the Fed, welcome them. Co-opt their arguments for the time-being. When the time comes that their interests diverge from yours, gain the advantage. Turn the tide in your favor.
Joe - If you want a GREENBACK, QE2 is the closest we've ever got to it. QE2 is, IMHO, the necessary precedent before a Greenback is possible. Remember, the standard private banker argument against the Greenback is inflation.
If Ben disproves that through QE2, it will make way for a Greenback argument.
If QE2 produces high inflation and fails, the economists will be lining up to defame a Greenback solution.
Think about it. It takes a high degree of objectivity toward the FRB, which is not a plentiful commodity these days! But, QE2 is the blood-brother of the Greenback.
I can appreciate your arguments, but the FRN suffers from the original sin of being a privately-created currency issued through debt (debt-money). So I can't quite get to your QE2 = Greenback facsimile.
There are, of course, arguments against the Greenback, as it is one more fiat currency. Agreed to those. At the very least, it is issued without debt and without interest. I hope for a system of Greenbacks to retire public debts (taxes) and private currencies to retire private debts (purchases). A system of competing currencies offers Free Men and Women the ability to chose how best to store their excess savings over time.
I kind of agree with Fraud that the QEII is a de facto Treasury Note issuance thru an intermediary (Fed). If the Fed monetizes all the debt, event foreign debt as it rolls over, the practical result is the FRN printing all debt on behalf of the Treasury, instant greenback. My concern is that the new greenback, just like the every previous greenback will hyperinflate. The federal government will not be able to control itself from the ability to freely print with no apparent drawbacks. What would another 10T do to the overall value of the current fiat?
Excellent comments, you all.
The audit of the fed was always really thought to be the beachhead by which the fed would be destroyed. Seemed a fallback position to an outright end.
And I think that would be the effect. Such a scam cannot stand the light of day.
I think we should simply hollow it out. Let it keep its check clearing and such operations. Recycling physical cash.
This would keep up the appearances, at least, that the whole system wouldn't be defunct.
But no more of this debt BS. Greenbacks, bitches. Continentals. Spent into existence by the government(s). Perhaps even issued by the respective states. State bank of ND doesn't seem to have any trouble balancing their books and running a surplus.
Inflation only really occurs when money creation/contraction does not reflect the valuation of the underlying assets.
Let the market price loans to businesses and individuals. Catherine Austin-Fitts has a nice ditty about three ladies who could be lending/investing/borrowing with each other and all of them be better off than one owning bank stocks, another running up credit cards, and third with a CD.
I'm forever on the lookout for those ideas that decentralize the control over money. The Fed is that icon of that centralized control, but then, so is the Federal government.
+1
That QE2 before Greenback is the die-and-go-to-Heaven argument they've been pushing for Centuries..only problem is it's After Life...ended by QE2.
US National Bank exists on US citizen's saving..the only kind of real money that keeps its shine.
A pretty slogan aside, how would that exactly manifest itself in practical terms? Everyone takes turns printing their own "money" and free market will take turns figuring out whose" money" it likes better?
Hell, I don't know. Ain't got no PhD, so that disqualifies me from having actual plans. See all the comments above if you want to see how easy all that is. I just like the ring of the phrase: "FREE MARKETS!". Don't you?
Let the market figure it out. Like it always does.
You mean banks. Let fractional reserve banks with fake accounting rules and no regulation figure it out.
No way.
Eliminating the FED is a distraction or a secondary action to REGULATING BANKING.
Turn bankers into a utility first. Make work = money first. Then, you can get rid of the FED.
int'l banks are going to roll out more anti-US Fed media than you've seen in your lifetime. Be careful of strange bedfellows.
++ banking as utility
The US National Bank. A transparent kitchen of finance. Real domestic GNP growth matched by currency creation. No free slices and crumbs to fix the bank monopolist's failure to achieve profits because they had to pay the US savers.
just when i thought that the cato institutue was a rabid right wing neocon disaster, it publishes a worthwhile piece extolling the virtues of ending the federal reserve.
not only has the fed not lived up to its promises but it defies the constitutional provision to place the value of money in the hands of the people - not a cabal of tyrants practicing politburo voodoo on a centrally controlled economy.
as an institution, the fed is corruption itself born in iniquity; but even if it had pure origins as an institution it would be exceedingly amenable to corruption as it is has been thoroughly infiltrated by the cia which in turn is controlled by the same plutocrats who control the fed. power corrupts and absolute power corrupts absolutely. the fed is thoroughly royalist and accountable to no one. where are the checks, balances, and limits of power?
monetarism - i.e. the fed - is the art of transferring wealth from the have-nots to the haves. inflation MUST occur with the fed and MUST cause wealth to flow from those without pricing power to those with it. and guess who has pricing power? the elite - those found within the top quintile of the economic pyramid. the widows and orphans are left to go fuck themselves.
but the fed is not the only culprit. fractional reserve banking is the midwife to the fed's chicanery. both under the faux gold standard of the 19th century and in many exchanges such as where non-existent silver is sold bareass naked in quantities totally unrelated to available supplies great instability and fraud are rampant. you can't spin gold out of straw.
we must return to a gold standard with gold real bills without fractional issuance of currency. this and only this will restore integrity to the american economy. and the too big to fail/save/fart must be broken up into systemically safe entities. if this means slower growth so be it.
the corruption of the currency is the corruption of morals. a sound currency is a sin qua non of honest relationships. when the spigot of money is left in the hands of a few greedy sociopaths it lubricates war machines and ghetto scenes. the fed must be eliminated now. lord have mercies on us all.
How can we return to a gold standard when the present dollar value of all assets in the world would make each ounce of gold worth umpteen 1000 of dollars? There is less than one ounce of gold per person on Earth.
How many of those assets are just accounting sleights-of-hand?
Once the truth of just how much gold ONE Dollar can purchase is known, I believe most folks will be quite upset to find themselves with a small gold coin and a microscope!
Yup.
So what if people find out that they need to turn in 36,000 of their dollars to get back an ounce of gold? That's the real story (or something like it.)
wrong. but there is less than 1 oz of silver, for each person on earth
Gold is like the Platinum meter now a fixed multiple wavelength of zenon. Not everybody needs to own it and use it, and as a substance itself, it fails to be as malleable as necessary. Confidence in finance will not be brought about by Gold manipulation. It was the bane of the Colonists and the purity of their spirit bled into our Founding Documents that will establish our survival.
I junked you for saying the CIA has infiltrated it. The infiltrators have few things in common; Harvard, Jewish. It is not that complicated. It is a club of cronies with that in common. Corrupt and safe in their corruption from all prosecution and scrutiny.
Curious....do you think it not important to capitalize letters...or are you just too lazy to hit the shift key?
Just wondering.
screw the gold standard. You should really review its history to understand it's a fiat in disguise. The BOE made tons of hay even under the Sterling Bill.
We have to reform BANKING and let the money be backed by whatever production is necessary- REAL bills.
I'm with you on the "fiat in disguise."
It would do a great disservice to gold to get it wrapped up in some monetary system.
No matter what fiat currency there is, if you can't exchange gold for it, then it truly is worthless paper. Gold is already and will always be the value against which fiat currencies are measured. And it doesn't take an act of congress to make it so.
quite a silly paper. there is no must, the fed WILL be abolished. The only question is voluntary or otherwise
President John F. Kennedy tried to take back control of the currency, with the Treasury issuing silver backed dollars. Tens of millions were printed and some were even in circulation. Then JFK went to Dallas...
As did G. H. W. Bush, H. R. Perot, Felix Rodriguez and R. M. Nixon, along with Luis Posada Carriles, Frank Sturgis, Guillermo Novo Sampol and Orlando Bosch.
Nixon said that he heard about it on a cab-ride home that day, when pictures have him getting off a plane from Dallas at Idlewild Airport. George H. W. Bush isn't sure whether he was in Bimini working on licensing another CIA off-shore drug-dealing platform, or at his offices in Houston. Can't be certain about those things, you know?
But, we all know where he was, indeed...
http://www.jfkmurdersolved.com/bush.htm
OutLookingIn,
US currency was backed by Silver until the Kennedy administration. Dimes, quarters, half dollars were ~90% silver until ~1965. Paper dollars were Treasury notes and could be exchanged for the 90% silver coin. Paper dollars became Federal Reserve Notes and could not be exchanged for silver.
As a kid, I enjoyed making a battery by stacking pennys and dimes with salty damp newspaper between. It was just a demp but it worked.
JFK's Executive Order #11110 ruffled some feathers to say the least.
Average guy on street finds that, in addition, CATO must be abolished.
And replace it with what, Marxist-Bozos'R'us? The average guy is in favor of Freedom and Capitalism! JUNK FOR YOU!
You realize that the Cato Institute is the mouthpiece of the Koch family (brothers)? You DO know that, don't you???
This is moronic.
Libertarian thought existed before the freaking Kochs and will exist after them.
If a group of people or an institution has a very clear point of view and you give them money to support it, and they keep going with that exact same point of view, did they become your mouthpiece? Or did you simply become a contributor to their efforts?
There's a huge swath of the left which, out of an ironic combination of ignorance and conceit, simply can't believe that thoughtful people disagree with them. And so they look for some sort of evil mastermind figure or figures to explain away people holding points of view antagonistic toward their own.
Another irony of the left's new fixation on the Kochs is that the hack who wrote the article about them, Jane Mayer, wrote a glowing, wet kiss of a profile about George Soros and his influence on the left just 5 years ago. Help one team and you're a magnificent philanthropist. Help another and you're a villain. Painfully childish.
Glad others still sees CATO as libertarian; my first reaction to this thread was "wow, did the pope endorse catholicism too?" As for regulating our way to utopia, what soon to be abolished organization had and didn't use it's regulatory power? Yes if we could only find decent regulators; if my aunt had balls ...
In 2008 free markets did an excellent job of highlighting problems inherent in the system, it was the regulatory brethren who insisted we need to commit trillions to saving it.
If we abolish the FED will we be left with:
The US National Trust(?) of Goldman Morgan, with Timmie as CEO?
Absolutely ridiculous. Why if we had to abolish the Fed for non-performance we'd have to abolish nearly every other Federal agency.
Hey, ya gotta start someplace. Why not the most prominent criminal?
Exactly.. I don't see the downside to SOZ's comment..
Something has to be done, but understand your sentiment, as killing the parasite will kill the host at this point. Get rid of the Fed and every other sovereign's CB/monetary authorities will be looking for payback. We repealed Glass-Steagall, at least nominally, to compete with Europe's and Japan's national champions, which at the time were significantly larger than our domestic banks. Now that we showed them how it's done, ending the Fed will have some serious blowback, imo (G19 +1). But, something's gotta be done. If I had to guess, it won't be done orderly or proactively, but out of absolute existential necessity once the smoke clears.
Glass-Steagall was repealed specifically to allow the big banks to move into the lucrative area of SIVs and MBSs that they had been angling for and nudging toward. A cozy deal, negotiated in the end directly between Clinton and Weill (Citigroup).
When asked about abolishing the FED, Lord Blankfein, said.
"Meh".
How long did it take, CATO? It's only AFTER the fed has proven to be a failure?
Apology to the mises institute is in the mail, right?
Complete rubbish.
The Fed will never be abolished!
In the end, Uncle Gorilla will prevail like the Mafia Thugs in Chicago.
Don't believe it?
Look no further than Nixon's immediate action to "protect the dollar from international speculators and money traders".....
Think about it. Aren't the financial markets manipulated more now than in 1971? Far more.
Obama, Geithner, Bernanke will eventually get up on the podium and utter a speech like this:
I'm not asking that the Fed be abolished. Just waterboarded. Again and again.
I know you're good at pissing on the parade - and it is hilarious - but every revolution begins with "Complete rubbish" and impossibilities. They don't start with "Hey good idea. That's easy."
Indeed! Time to at least turn over the Rocks and see just what kind of creepy crawly things are under them!
+1913
"I've instructed Secretary [of the Treasury] Connally..."
http://en.wikipedia.org/wiki/John_Connally
[snip]:
Secretary of the TreasuryIn 1971, Republican President Nixon appointed the then Democrat Connally as Treasury Secretary. Before agreeing to take the appointment, however, Connally told Nixon that the president must find a position in the administration for George H.W. Bush, the Republican who had been defeated in November 1970 in a hard-fought U.S. Senate race against Democrat Lloyd M. Bentsen. Connally told Nixon that his taking the treasury post would embarrass Bush, who had "labored in the vineyards" for Nixon's election as president, while Connally had supported Humphrey. Ben Barnes, then the lieutenant governor and originally a Connally ally, claims in his autobiography that Connally's insistence saved Bush's political career because the then former U.S. representative and twice-defeated Senate candidate relied on appointed offices to build a resume by which to seek the presidency in 1980 and again in 1988. Nixon hence named Bush as ambassador to the United Nations in order to secure Connally's services at treasury. Barnes also said that he doubted George W. Bush could have become president in 2001 had Bush's father not first been given the string of federal appointments during the 1970s to strengthen the family's political viability.[15]
On taking the treasury post, Connally famously told a delegation of Europeans worried about exchange rate fluctuations that the American dollar "is our currency, but your problem."
I suspect he had no problem following those instructions ...
http://www.andmagazine.com/content/uploads/john_f_kennedy_connely.jpg
Nixon: "The Amerikan people want to know if their president is a crook. Well, I'm not a crook!"
Central banking and expansion of government go hand in hand, of course one fights to protect the other. But this duo guarantees we will all be employed ... right?
"The Federal Reserve System has not lived up to its original promise."
The Fed had no promise. It is the demonic spoor of the conspiracy of a globalist, elitist, mercantilist banksta cabal. At its rotten and fetid core you will ultimately find the same malevolent network of one worlders. This cabal is responsible for the infection of many of the nations of the world with UN fellow travelers. These are attempting to co-opt and supplant political leadership of whatever political structure the nation utilizes, social democracies are a natural, so to integrate the nation as a state, province or whatever into an undiverse globalist political borg with a lite fascist bent and blue helmet enforcement (a new mission for NATO?). Oddly enough, the only nations recognizing this power play for what it is are communist. You can't have a fascist globalism intruding when you are already totalitarian marxists. The USA is infected with its agents and useful idiots and vulnerable via UN sanctioned politically active NGOs, but has a lot more drag in conversion due to some latent libertarian inclinations incident to its founding and founders. The bankstas are their bankrollers. They seek global taxation powers and control over much of the world's natural resources. They may soon get them.
The neocon Cato Institute is worse than useless and comes dragged kicking and screaming late to the table. Its language implies the need for a "new and improved" Fed capable of "living up to its promise." It's just another con job. While you are out killing the Fed, save some energy for the UN. Just calling a spade a spade. Rant mode off.
The term "neocon" is almost a reverse word at this point. It's commonly used as a derogatory term yet has almost never been defined or achieved any sort of set connotation. It expresses emotion but adds no understanding to a discussion.
Please explain exactly what "neocon" means and who is one?
The misuse of this word also bugs me, Fred.
The "neocons" originated in the Democratic party under Senator Henry "Scoop" Jackson then later under the wing of Democratic Vice-President Hubert Humphrey. Initial masterpieces were Henry Kissinger, William Kristol, Richard Perle and Paul Wolfowitz. When, however, they recognised that Humphrey would lose to Nixon in 1968 (or, alternatively, they decided to help Nixon win so that they could have a new power base in the Republican party ... Kissinger definitely played a double-agent role), they jumped ship to the Republican party and expanded their clique to introduce such humanitarians as Rumsfeld and Cheney.
Since then, they have held sway over both parties and jump between administrations. Perle and Wolfowitz are to this day still Democrats.
"Right wing neocons" is a tautology ... the neocons are neither "conservative" nor traditional right wing (free market capitalist). They are Trotskyite socialists with an objective of continual revolution towards a world government.
Dammit, Wikipedia sure pissed away a whole grundle of photons on this one I guess. Have fun. Wallow in it if you want:
http://en.wikipedia.org/wiki/Neoconservatism
Here's another two to gnaw on. Googling neocon and Mises Institute would help- in fleshing it out as well. Let me know if you all are still confused:
http://www.lewrockwell.com/rockwell/neo-con-explained.html
http://www.lewrockwell.com/dilorenzo/dilorenzo80.html
I cannot think of a think tank I trust less than Koch Brothers Cato Institute.... if they are right on occasion... it is for all the wrong reasons.
I cannot think of anything I enjoy more than watching the agonized squirmings of statists as they watch their beloved Leviathan crumble before their very eyes. The horror!
I would love to ascertain the troll who junked you for stating the truth. One can't be that ignorant with all the information available on the Koch brothers... (although they could be teaming up with Murdoch vis-a-vis Glenn Beck to go after another US oligarch, aka Soros-but I'm just a little tired).
this is not new info to anyone who read minsky
Sure would have been nice if they'd realized this before the Fed destroyed the economy.
Broken institutions, organizations, and processes are everywhere, especially in and around government. They eat the weak people that join them in hopes of effecting change from within. The mass momentum of errors in the past is quite powerful. Irreconciliable conflict of interests dissapate any remaining energy of the few people trying to serve. The organizational force required to reform these systems is quite large and even in the epic fail scenario the efforts are not well enough organized to create truly viable, "error free" replacements.
Do we really need another 84 pages to prove all this?
If all politics is local, then let's start small with one of the DOE's, Energy or Education, each of which have monumentally failed at their mandate. Then on to Agriculture, Labor, DHS and DOD. Then the Fed.
The hour of your redemption is here.
- General of the Army Douglass MacArthur, upon his landing at Leyte Beach, Philippine Islands, 20 October 1944
biggest fraud & scam of the past 200 years perpetrated on the honest & good people.......... our "older generation "......... not the boomers, mind you, but our parents, those in that 65-85 year age group........ everyone knows who I'm talking about....... those people who lived their lives in an HONEST, FORTHRIGHT, RESPONSIBLE manner.......... ...... those "reverse mortgage" advertisements on t.v. make me want to puke........... banks want every last drop of blood from every last older person who managed to retain even a bit of wealth for themselves or for their heirs........... fucking banks . There will be no inheritances for future generations if these banks are not stopped. yes, i'm mad.
Just change the shareholding situation - bankers cannot be the ultimate shareholders of the Fed pulling the string on all major policies including who to nominate to the chairmanship. Why did Cato's gentle folks think an academic from nowhere (well ok, Princeton) called Bernanke was installed there? Because the bankster had foreseen the need to print money endlessly way back, after the dot-com crash.
As long as there are banks in the US, there is a need for a last provider of liquidity. Soultion is to abolish fractional reserve banking - make it utility providing service to commerce and retail customers and pure distributor of money, not creator of money. And I disagree that personalities don't make a difference - Volcker anyone? Oh, and of course the Koch brothers did not like Volcker, my bad.
Only if you're a banker. Everybody else could give a shit.
...Painful for who, exactly? Those that bought into this fucking bloated rotting bag of shit and pus that passes for a financial system?
DISTRACTION.
Want to ban the Fed, fine.
But - keep your eye on the ball, BANKS. They'll still be standing afterwards.
This is a massive distraction from the BANK REGULATION/PROSECUTION conversation. Read Bill Black. It's the first order of business. The FRB hardly comes up, except in its failed regulatory capacity.
I have but one question for CATO....
Why do you oppose bank regulations and Bill Black?
Ok, I've got to disagree with you here. You want to keep the creature of Jekyll island but you want to regulate it? Who do you think regulations are written for? Regulations are written by those who can pay for the better whores. They have always been written to screw the up and coming and protect the big guys. Sorry, regulations don't work.
Don't want to keep it, just want the eye kept on the priority ball....banks and bank fraud. Those little pricks, some of which have never seen the Fed, they're still out there. They are traitors. If you squeeze the banks down to utilities who can't issue like the Reichsbank, what can the Fed do? It will be a cartel of utilities... Make ALL banks utilities with lots of cops watching them, then turn to the FEDRES ACT.
Ban it if you want then, but get your alternative ready, Greenbacks or private notes. Can't take too many risks with most powerful nation in world status, can't freak people out either. We're monetizing our raw military power at this point, but at least we're forcing the FED to buy public debt and not buying bank assets this round!
The theory that we've got the leverage on the banks/Fed today is not explored, as it should be. We do. Now, we've had the TIME to look at our alternatives. They had a one-off with Paulson's terror campaign. Now, we're in the drivers seat, IF you believe some of our leaders are not totally compromised and don't want to be on watch when the banks destroy America.
We could be prosecuting all the biggest bankers and Fed members for fraud today. Enough evidence is there. No idea what's going on inside, but it looks like Ben and Obama have reached an accord. Perhaps it was under threat? Who knows...But, look at the results. The GOV is happy as a lark with QE2 and big money is screaming for heads. QE2 is not Bailout 1.
It seems to be a foregone conclusion that the privately owned Federal Reserve will FINALLY give up and go away--naturally, there will be all sorts of scandal, hoopla, ruckus and teeth gnashing over the issue and finally, our country will be rid of this institution...BUT
only because they have already received the rights to income from taxpayer money for generations throught this last bailout heist, and this money will go toward some bigger more damaging scheme, like cap and trade--I will leave it all to you to figure out this cartel's next big scam on all of us.
Here's a regular oldie but goodie treat from our globalist overseers:
http://www.youtube.com/watch?v=v4kZd4Roies&feature=related
While I'll admit to not having read the entire paper, the problem is not the Fed (or any other central bank) per se but the propensity of government to expropriate the 'money market' to monetise its own debt, which being unrepayable would soon enough be worthless without a 'backstop' which can conveniently be passed off on citizens in the form of unredeemable notes.
If the Fed was truly private it would have to redeem its own credit, with gold, or face insolvency.
The American people are finally getting one dividend of the Petro-dollar power, monetized debt in a crisis. Too bad it had to come to this kind of benefit, we should have been getting better benefits all along, after all, we fought those wars, we spent our money building the international security system.
But - international capital and banks have been stealing all the post WWII gains for themselves. The FRB is part of that scheme. But - by logic of their institutional power, they can also act against international capital. They can act with nationalism (which is the prime foreign complaint today). These are interesting times. I don't think it's as cut and dry as people think.
Now, the international banks and their masters will attack the U.S. Fed relentlessly for even considering using the U.S. currency for anything other than to their benefit.
section 2, Fed's mission: maintain growth in credit and monetary aggregates.
It's all right there. There is no system requiring constant growth which will not eventually fail. Period. Even if we considered a system storing a freaking number, if the growth rate of this number exceeds the growth rate of the real world system that stores it, even if that's a digital one, eventually, the real world system cannot cope with the growth expectation.
The Fed failed because the system is a failure. The Fed did succeed in its real mission of enriching the shit out of bankers.
Yours is the most accurate post in the entire thread.
The design of our system requires perpetual growth. Why did we choose such a system? Because in a world unconstrained by physical limits our system maximizes the growth rate which makes citizens, politicians, corporations, and banks happy. The problem is that when our system bumps up against a physical limit to growth (such as energy which drives everything) it explodes, by design. You are here.
good point.
a sustainable monetary system that rewards value, not growth. That's what makes me sick about bank cartel, they made all the profits off fake growth and took no risk due to an assumed bailout.
Merkel is the only major leader asking the risk-takers to take a haircut. The fallout of this sleazy system could be a global French Revolution and they'd deserve it.
There are worse things than the Fed, like a global central bank and a global currency.
Thoughts on these?
End The FED. Get The Gold.
http://www.lewrockwell.com/north/north895.html
WHERE IS THE GOLD?
http://www.lewrockwell.com/north/north888.html
The New Push for a Global Currencyhttp://mises.org/daily/4620
Oh...I see...so because you have posted, it is either the FED or global governance. What a fucking stupid notion...
How about a simple free market...and freedom as granted by God? Think about it, small fry. Try to expand.
Cdad was here...
They are all inter-related spawns of the same drive for global enslavement. Don't be a binary pea-brain.
Destroy them all and you will strike a blow for freedom of capital, currency, enterprise, and expression. It is the individual citizen's responsibility to ensure that plurality and freedom is maintained. America is all about the free market of ideas and potential.
Who needs order from chaos when you can have growth from destruction.
Certainly the FED will provide enough fertilizer for that garden....
apparently no one bothers to read because they know everything...
talking loud, saying nothing.
How does nationalizing banks and issuing global paper currency enhance freedom or improve free market conditions? Everything the government runs is bankrupt and they want to run everything, libido dominandi. We go from bad to worse. What it does is give away more control. Our fearless leaders, who do not belong in the positions they are in, do not want to give up any of their control. The causes of the present evils are the effects of similar interventionist policies of the past. The future consequences of present interventionist policies are similar to (but worse than) the present evils they fight.
Like I said - less government intervention, free markets, more freedom. The point is do not expect politicians to do what is in the best interests of everyone else.