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The Fed Turns 100: A Survey of the Critics

Tyler Durden's picture





 

Submitted by Gergory Bresiger of The Ludwig von Mises Institute,

End America’s central bank because it caused the crashes of 2008, 1987, and 1929 and will blunder again.

That’s what many critics are saying about the Federal Reserve System (the Fed), which turns 100 on December 23. They note that on the Fed’s watch America has endured numerous bubbles, crashes, and inflationary cycles that have greatly devalued the dollar. The Fed, they say, has caused or aggravated several crashes.

“The Fed’s performance over the century has been abysmal, no matter how you look at it,” says Professor Joseph Salerno, a business professor and monetary expert at Pace University.

“If you say the goal of the Fed was to prevent calamities, then you have to say that it has been a failure,” says William A. Fleckenstein, a hedge fund manager and the author of Greenspan’s Bubbles.

Fleckenstein says he’s seen two bubbles over the past quarter century. He also believes that, under the Fed’s system of easy money, of interest rates of close to zero percent over the past few years that, “the Fed is once again creating a bubble.” The Fed should be abolished, he adds, because it has no accountability for its mistakes.

The length of the Fed’s charter is indefinite, said Fed sources, who would only speak on background. And that is generally the only way Fed sources will speak when asked about the bank’s current policies or historical record.

What is the Fed?

The Fed is a bank for banks that creates money. It is designed to be a lender of last resort to sick banks in times of crisis. And crisis is one reason why the United States finally returned to authorizing a central bank a century ago. (America had previously had a central bank in the 19th century, but its legislative re-authorization was vetoed by Andrew Jackson who railed against a central bank as the tool of moneyed interests.)

The Fed began with the goal of protecting the dollar. It was given the exclusive right to create money in 1913.

The Fed would “provide a means by which periodic panics which shake the American Republic, and do it enormous injury, would be stopped,” according to Robert Latham Owen, one of the authors of the original Federal Reserve Act.

Why was it given these powers?

After the Wall Street banking Panic of 1907 led numerous banks to fail, “there was a growing consensus among all Americans that a central banking authority was needed to ensure a healthy banking system and provide for an elastic currency,” according to the official Federal Reserve history.

But critics claim the Fed has made things worse. Subsequent problems were the result of Fed governors giving in to political pressure, providing elastic or “cheap money.” This is the controversial Fed policy of setting interest rates. If set too low, the rates will mislead consumers and businesses, causing them to borrow too much. And that can lead to a cycle of boom and bust.

That’s what many believe happened in 2007-2008 as millions of Americans were encouraged through cheap-money policies to use subprime loans to buy homes they couldn’t afford. But Fed critics contend that it had happened before.

For instance, interest rates were dirt cheap in 1972, which led later to an economic disaster as inflation jumped to 10 percent and interest rates went to over 20 percent in the 1970s.

“The consequence of the monetary framework of the 1970s was two bouts of double-digit inflation,” said Fed Chairman Bernard Bernanke in a recent speech entitled, “A Century of U.S. Central Banking: Goals, Framework, Accountability.” These 1970s events killed interest sensitive industries and destroyed many small businesses that couldn’t obtain credit.

These controversial money policies have lead to crashes, depressions, and recessions, including the crash of 1929 and resulting Great Depression, critics say. Some 10,000 banks failed between 1930 and 1933, according to Fed numbers.

“Tragically, the Fed failed to meet the mandate to maintain financial stability,” Bernanke said in his speech.

“Many people,” according to the official Fed history, “blamed the Fed for failing to stem speculative lending that led to the crash, and some argued that inadequate understanding of monetary economics kept the Fed from pursuing polices that could have lessened the depth of the Depression.”

One of the people blaming the Fed was economist and monetary historian Milton Friedman. He criticized Fed policies for triggering the 1929 crash and then causing a depression that lasted over a decade.

“Throughout the contraction, the System [the Fed] had ample powers to cut short the tragic process of monetary deflation and banking collapse,” according to The Great Contraction 1929-1933, by Milton Friedman and Anna Schwartz.

To Fed critics, the Great Depression of 1929 and the great inflation of the 1970s were part of a series of policy blunders that happened again in 2008.

“There never would have been a subprime mortgage crisis if the Fed had been alert,” Schwartz told the Wall Street Journal. “This is something Alan Greenspan must answer for.”

In Greenspan’s memoir, The Age of Turbulence, the former Fed chairman conceded that Fed actions leading up to the crisis were dangerous. He wrote: “I was aware that the loosening of mortgage credit terms for subprime borrowers increased financial risk, and that subsidized home ownership initiatives distort market outcomes.” Still, Greenspan said he believes in the idea of every American having a home.

Economist Laurence Kotlikoff of Boston University says he’d give the Fed a C grade in its first century.

“It didn’t prevent the Great Depression or the Great Recession. It hasn’t fixed the core problems: opacity and leverage in the banking system,” Kotlikoff said.

“Central banking has a poor record but other methods do as well,” adds Jeffrey Gundlach, the manager of the Doubleline Total Return Bond Fund, which invests in mortgage backed securities. Gundlach has been very critical of cheap money policies of the Fed and predicted the crash of 2008. He believes the government should balance the budget first and then consider the Fed’s future.

Other critics, in reviewing the Fed’s record are harsher. They say it is time to end the Fed, in part because it favors certain banking interests.

“The Fed is an instrument of crony capitalism,” warns Hunter Lewis, a money manager and the co-founder of Cambridge Associates, an investment advisory firm.

“The Fed should be abolished because its legal monopoly of the money supply renders it an inherently inflationary institution able to create money at will and without limit,” says Salerno, noting that the value of a 1913 dollar is now five cents.

“History and current experience,” Salerno adds, “reveal to us that groups endowed with a legal monopoly over any area of the economy are prone to use it to the hilt to enrich themselves, their friends and allies.”

 


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Fri, 12/06/2013 - 14:23 | Link to Comment backseatdriver
backseatdriver's picture

Happy Birthday Fed, eat shit and die now

Fri, 12/06/2013 - 14:27 | Link to Comment Xibalba
Xibalba's picture

Like anything natural, when you fuck with it, it becomes a Creature. In this case, a Creature from Jekyll Island.

Fri, 12/06/2013 - 14:29 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

"The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

 

-The Rothschild brothers of London writing to associates in New York, 1863.

Fri, 12/06/2013 - 14:33 | Link to Comment Grande Tetons
Grande Tetons's picture

Worse than that...many will embrace the system that enslaves them. EBT anyone? Obamacare anyone? .............

Fri, 12/06/2013 - 15:14 | Link to Comment pods
pods's picture

The FED was created to allow banks to endure credit contraction and to allow the government to deficit spend and use the inflation tax.

Banks get "liquidity" to allow seizure of real property due to default of funny credit money without going under.

The Feds get that 2% or so per year in their pocket.

We get?

Fucked.

The FED was a perfect marriage of banking and government. 

pods

Fri, 12/06/2013 - 15:16 | Link to Comment Dick Buttkiss
Dick Buttkiss's picture

The marriage is not only going to end; so are the parties to it:

http://pro.moneymappress.com/NVXBITCOIN49/MNVXPC05/?a=13&o=11399&s=11591...

Fri, 12/06/2013 - 16:06 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

The Fed is like a black hole in outer space that ejects hundred dollar bills in return for mountains, rivers oceans, continents, Gold and anything else it can purchase. Clearly a Military operation. They won't stop until there is nothing left of the earth but its molten core. And you folks continue to enlist your children in the services and law enforcement. You all must have I.Q.'s in the negative number.

Fri, 12/06/2013 - 16:20 | Link to Comment negative rates
negative rates's picture

Interpretation run a muck, that is the Fed.

Fri, 12/06/2013 - 16:42 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

The Federal Reserve is a Military Psych Ops.

Fri, 12/06/2013 - 17:24 | Link to Comment Odin
Odin's picture

Yes, riiiight, they just made a long series of "mistakes" that just so happened to enrich the owners of the Big Banks, Big Oil, and the Military Industrial Complex at the expense of us all......... Such fortunate mistakes indeed.

Fri, 12/06/2013 - 19:58 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

They force us to come off our land to get pieces of green paper away from them so we can give it right back to them in the form of property taxes. To do so we have to enslave ourselves in order to get more pieces of paper away from them so we can give it right back to them in the form of income taxes. We are forced to have auto and health insurance, requiring us to get more pieces of paper away from them only to give it right back to them. We are forced to borrow with interest, keeping us in debt for eternity, requiring us to get ever increasing quantities of that green paper in order to give it right back to them...

FUN GAME YOU FUCKING MILITARY MORONS

We would have ended the fraudulent federal fucking reserve yesterday if all of them wore turbines, spoke an unrecognizable foreign language and had dark skin.

Actually, The Military is so fucking stupid even that wouldn't get their attention...

Fri, 12/06/2013 - 15:34 | Link to Comment Dick Buttkiss
Dick Buttkiss's picture

The marriage is not only going to end; so are the parties to it:

http://www.youtube.com/watch?v=Cs6F91dFYCs

Fri, 12/06/2013 - 15:50 | Link to Comment fonestar
fonestar's picture

Happy birthday Creature From Jekyll Island!

The mind control victims on ZH love you and wish you another 100 years!!

Fri, 12/06/2013 - 15:59 | Link to Comment Four chan
Four chan's picture

this is all quite fascinating but how do you determine fair compensation for the "time of life" you are giving up, 
when the means of that compensation is worth nothing, not tied to anything in the real 
world (unlike our most precious thing our time of life) and moreover is being consistently devalued by the creation of evermore of these debt instruments out of thin air? each one stealing silently from you, your savings/buying power. this is the why behind why the fed is evil to the core, a system of money not set up by patriots for patriots, but by jews who have enslaved us all and stolen a nation with worthless debt created out of thin air and edict.
Fri, 12/06/2013 - 16:21 | Link to Comment negative rates
negative rates's picture

You can't get yours until the lord gets hers.

Fri, 12/06/2013 - 14:27 | Link to Comment tsx500
tsx500's picture

end. the. fed.

Fri, 12/06/2013 - 14:32 | Link to Comment Landotfree
Landotfree's picture

You can end the Fed but you won't eliminate the crashes.   As long as humans continue to attach interest to their medium of exchange, well, good luck.... 

These systems have been crashing with or without things called central banks for 1000s of years.  

Eliminating the Fed only addresses a symptom of the problem but not the problem itself.   

 

Fri, 12/06/2013 - 14:43 | Link to Comment Xibalba
Xibalba's picture

Agree.  But that's also like saying, "Pepole have been drinking vodka for 1000's of years. Why stop giving them painkillers to help with the headache?" 

Sat, 12/07/2013 - 09:46 | Link to Comment Oracle 911
Oracle 911's picture

The real problem is the fractional reserve system in banking and unbacked currency, not the interest itself (if you buying a house, compound interest is bad, if you starting a business the simple interest is acceptable).

Fri, 12/06/2013 - 14:35 | Link to Comment Crash Overide
Crash Overide's picture

Does anyone else think that when the FED announces no taper and actually increases the amount being "created" each month, that  will be the final move that will send metals prices higher and crash the paper markets?

Fri, 12/06/2013 - 14:37 | Link to Comment Landotfree
Landotfree's picture

You mean like in 2008 where the metal went down with everything else?

Fri, 12/06/2013 - 14:43 | Link to Comment frankTHE COIN
frankTHE COIN's picture

True. But it stopped falling first and then turned up first, then doubled. And technically and fundamentally can scream much, much higher.

Fri, 12/06/2013 - 18:58 | Link to Comment N2OJoe
N2OJoe's picture

As long as they can print more paper and short sell more paper gold, the "price" is entirely under control.

 

Until the Chinese, Russians, and Indans own all the phys and cant get any more, then it all falls apart...

Fri, 12/06/2013 - 14:37 | Link to Comment Race Car Driver
Race Car Driver's picture

The Fed isn't gonna end - it's gonna morph. The Hundred Year Plan is almost over. It's time for a new world order.

" We have before us the opportunity to forge for ourselves and for future generations a new world order, a world where the rule of law, not the law of the jungle, governs the conduct of nations. When we are successful, and we will be, we have a real chance at this new world order, an order in which a credible United Nations can use its peacekeeping role to fulfill the promise and vision of the U.N.'s founders. We have no argument with the people of Iraq. Indeed, for the innocents caught in this conflict, I pray for their safety."

- Poppy Bush

 

Indeed, pray.

Fri, 12/06/2013 - 14:40 | Link to Comment falak pema
falak pema's picture

you mean you don't believe in "Optimal control"...?

Does not the optimal shake you to your very bone marrow?

As for the control, just imagine Steve Mcqueen driving his Mustang in Bullit! 

Now put the two together and you have Yellen! 

Daytona here we come. 

Fri, 12/06/2013 - 14:35 | Link to Comment lynnybee
lynnybee's picture

Happy Birthday Fed, eat shit and die now ... please include me in on those birthday wishes ! 

Fri, 12/06/2013 - 14:40 | Link to Comment Winston Churchill
Winston Churchill's picture

Don't forget the Love and XXX's.

Fri, 12/06/2013 - 14:54 | Link to Comment prains
prains's picture

“The Fed is an instrument of crony capitalism,” 

 

 

NUFF SAID !

Fri, 12/06/2013 - 15:52 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

The only one's celebrating this milestone would be the bankers and the money dynasty masters.  For the rest of us ordinary folk , the financial enslavement is cause for revolution against these slavemasters.

Fri, 12/06/2013 - 14:25 | Link to Comment Bryan
Bryan's picture

Is anyone else just getting sick and tired of all the BS and lies that are spewed daily from our fearless leaders?  I know I am.  Can we secede from the rest of the idiots in the country? 

Fri, 12/06/2013 - 14:35 | Link to Comment NIHILIST CIPHER
NIHILIST CIPHER's picture

Bryan              YES YOU CAN!  But the drone attacks are a bitch.

Fri, 12/06/2013 - 14:42 | Link to Comment Bryan
Bryan's picture

Hm.  How can we get Libertarianism, Ron Paul, and the like to stand up to the rampant stupidity going on?  We need to put money where our mouth is and edjumicate the sheep, like the Repubs and Democrats have been doing.  !Viva la revolucion!

Fri, 12/06/2013 - 15:09 | Link to Comment pods
pods's picture

You don't even need to do that. Just avoid credit and let the FED and the Feral government explode.

This system only survives due to exponential increase in credit. The majority of credit is created by US.  House, car, school, credit cards.

We have all the tools to crush this behemoth.  

We make our own chains.  Stop debt expansion and the whole thing goes pop.  Reduce your taxable income, use cash and scale back to bare necessities, bartering if you can.

pods

Fri, 12/06/2013 - 14:39 | Link to Comment JustObserving
JustObserving's picture
The Fed Turns 100


Only the good die young.  Vampires are forever.

Fri, 12/06/2013 - 14:28 | Link to Comment Al Huxley
Al Huxley's picture

...and to celebrate they're going to run stocks to the moon - +200 on the dow every day from now til Christmas!  Hurray for the super rich! Hurray for the investment bankers!

Fri, 12/06/2013 - 14:27 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Has the contract to keep issuing our money been renewed?    That's all that matters now...

Fri, 12/06/2013 - 14:37 | Link to Comment Seasmoke
Seasmoke's picture

I'm sure it will be on Christmas Eve , after the Egg Nog. 

Fri, 12/06/2013 - 14:45 | Link to Comment Winston Churchill
Winston Churchill's picture

In perpuity in the 1930's.

Blame FDR for that, and WW for its creation.

Socialism really was invented as serf control  by the rich,

for the rich.

Fri, 12/06/2013 - 16:26 | Link to Comment negative rates
negative rates's picture

Lets shake on it and make a financial state, then renig when the contract is not signed and presented in front of a judge. We could actually start an insurance co. over this idea. Wit a couple lawyers.

Fri, 12/06/2013 - 14:32 | Link to Comment kchrisc
kchrisc's picture

End the Fed because it is a Unconstitutional criminal enterprise. Any other reason is dribble. That is unless you can find the authorization in the Constitution for a central bank.

Article 3, Section 3 may just cover it though.

 

"Warning: Ignorance of the Constitution and 'following orders' are no excuse."

Fri, 12/06/2013 - 14:34 | Link to Comment DOGGONE
DOGGONE's picture

This looks like admirable to me
http://www.showrealhist.com/3warnsRD.html
What say you?

Fri, 12/06/2013 - 15:01 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

I'm reminded of a comment by the prophet ''LongSoupLine''

''At this rate it's just a matter of fucking time before every central banker is hanging by their fucking balls and beaten with fucking sticks in the public square.

Fucking pieces of subhuman ass juice.  Fuck off and die Bernanke you stinking bank ball juice licking asshole.''


Fri, 12/06/2013 - 16:27 | Link to Comment pods
pods's picture

I miss him, he was our very own "two minutes hate," speaking what we all feel.

Think of how many marriages he saved by allowing a public venting of collective anger like that?

Not to mention livers.

pods

Fri, 12/06/2013 - 14:45 | Link to Comment flow5
flow5's picture

The fact is the monetary authority is so scared it has censored its technical staff:

"The Federal Reserve Plans To Identify “Key Bloggers” And Monitor Billions Of Conversations About The Fed On Facebook, Twitter, Forums And Blogs"

Fri, 12/06/2013 - 14:53 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture
'The Federal Reserve Cartel: The Eight Families'

''that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. [3] The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.''

http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-famili...

(fuck you CH1)

Fri, 12/06/2013 - 15:01 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Like all cancers, a mixture of surgery (kill the FED) and behavior change (balance the budget) are required for anything other than the patient's death.

Fri, 12/06/2013 - 14:49 | Link to Comment Sufiy
Sufiy's picture

Another battle in 100 Year War Against Gold. Who is really behind "Gold 2.0" Bitcoin?

 


The Future Of Money: Gold, CIA And Bitcoin


 All these discussions about the CIA and Bitcoin connections are still in the conspiracy theory category like LIBOR and FOREX manipulations before. After China has banned its financial institutions  from participation in Bitcoin the question about who is really behind the Bitcoin is getting more and more interesting.   With Facebook we created for NSA all our profiles, with Bitcoin somebody is mapping our accounts, IDs and Networks. As the case with Silk Road shows Bitcoin transactions are public forever, can be mapped and build into evidence - so much for distribution and anonymity. http://sufiy.blogspot.co.uk/2013/12/the-future-of-money-gold-cia-and-bit... Bitcoin Crashes As China Bans Financial Companies From Bitcoin Transactions


"After Peter Schift, The Economist, Forbes and even Mr Bubble himself - Mr Greenspan - have called Bitcoin The Bubble it took the announcement from China to Crash it down from Double Top and parity level with Gold. It is important to note that China has been buying the record amount of Gold this year and has encouraged its citizens to accumulate it. Now China is explicitly warning its people about the dangers of Bitcoin speculative Bubble and effectively taking its out of official monetary system.   Now position of FED and Congress on Bitcoin is getting more interesting: do we have the Mexican standoff between Gold backed China, FED backed US Dollar and ... NSA, sorry Satoshi Nakamoto backed Bitcoin?   Gold should be waking up to the Bitcoin action after this Chinese move and its timing is very important as well: Gold is very close to retest this year low."

Fri, 12/06/2013 - 14:58 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Funny that China apparently has a Consumer Financial Protection Agency.

Maybe they can start putting out recommendations for the US as well?

Fri, 12/06/2013 - 14:53 | Link to Comment BudFox2012
BudFox2012's picture

If we get rid of the Fed, who mint Obama's trillion dollar coin?    Who will needlessly debase our currency so we can afford to fight endless meaningless wars to make the miltary industrial complex rich?  Who will loan banks trillions at little to no interest so they can gamble it all away on risky bets in stocks/commodities?  And most importantly, who will drive the money helicopter?  You people really need to think this through before making such rash requests...

Sat, 12/07/2013 - 00:15 | Link to Comment monad
monad's picture

If we can lose the FR syndicate, we can lose the bffederal government. We don't need Barry and his vultures. They need us.

Fri, 12/06/2013 - 14:55 | Link to Comment Crash Overide
Crash Overide's picture

Does this have anything to do with the FED birthday?

Vampire squid in space?

 

http://www.huffingtonpost.com/2013/12/05/nro-satellite-logo_n_4394577.html

Fri, 12/06/2013 - 15:12 | Link to Comment Toolshed
Toolshed's picture

Ending the fed, replacing the income tax with a flat rate consumption tax so everyone pays their share, and returning to the gold standard would be a really good start on the road back to sanity. Fat chance.

Fri, 12/06/2013 - 15:15 | Link to Comment U4 eee aaa
U4 eee aaa's picture

I remember reading somewhere that the original charter was only for 99 years. Did they extend it or is it also running illegally that way too?

Fri, 12/06/2013 - 15:32 | Link to Comment Goldilocks
Goldilocks's picture

Arguing on the internet is like running in the Special Olympics.
Even if you win, you’re still retarded.

Arguing on the internet is like competing in the Special Olympics because
http://www.youtube.com/watch?v=EDW5X9N2U7U (1:01)

Arguing on the Internet
http://www.funnyjunk.com/funny_pictures/328269/Arguing/

The markets are rigged.                    The markets are rigged.
     The markets are rigged.                    The markets are rigged.
          The markets are rigged.                    The markets are rigged.
     The markets are rigged.                    The markets are rigged.
The markets are rigged.                    The markets are rigged.
     The markets are rigged.                    The markets are rigged.
          The markets are rigged.                    The markets are rigged.
     The markets are rigged.                    The markets are rigged.
The markets are rigged.                    The markets are rigged.

Fri, 12/06/2013 - 15:34 | Link to Comment pragmatic hobo
pragmatic hobo's picture

in fairness ... bubbles and crashes existed prior to the fed and will exist if the fed is dismantled ... it's human nature.

Fri, 12/06/2013 - 15:32 | Link to Comment Dull Care
Dull Care's picture

Fuck you Bernanke!

Fri, 12/06/2013 - 15:39 | Link to Comment Element
Element's picture

heppy berthday amerika!

Fri, 12/06/2013 - 15:43 | Link to Comment B.J. Worthy
B.J. Worthy's picture

100? Time to put the Fed before a Death Panel.

Fri, 12/06/2013 - 15:57 | Link to Comment monad
monad's picture

Laurence Kotlikoff: F

Fri, 12/06/2013 - 16:10 | Link to Comment Dr.Vannostrand
Dr.Vannostrand's picture

Today is my 2 yr ZH bday. Big thanks to all of you here.
Free Francis Swayer!
Fuck you Mr.Yellen!

Fri, 12/06/2013 - 19:57 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

We would have ended the fraudulent federal fucking reserve yesterday if all of them wore turbines, spoke an unrecognizable foreign language and had dark skin.

Actually, Americans are so fucking stupid even that wouldn't get their attention...

Fri, 12/06/2013 - 20:01 | Link to Comment Radical Marijuana
Radical Marijuana's picture

http://www.doomsteaddiner.net/blog/2012/02/24/da-fed-central-banking-acc...

"The End of Da Fed is not the End of our problems. It is not even the Beginning of the End. It is just the End of the Beginning."

Our problems are trillions of times worse than any article emanating from the von Mises Institute appears that it is going to address directly. All of the dozens of articles that I have read from them are way too polite and superficial. They tend to be correct enough, within their frame of reference, BUT it is that frame of reference that is the problem.

OF COURSE, the Federal Reserve Board is the result of organized crime covertly taking control over the government of the USA, and having thereafter been able to almost totally consolidate the control of the international bankers over the USA and most of the rest of the world. The Fed exists because of these basic social facts:

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance."

-- James Madison, 4th US President

There is not the slightest bit of exaggeration in that quote from President Madison. Nobody who talks about the Fed who does not address that the Fed is based upon "every form of abuse, intrigue, deceit, and violent means possible" is talking about the real world, but rather, if they fail to address that, then they are being excessively polite and superficial in their discussion of the Fed.

MONEY IS MEASUREMENT BACKED BY MURDER.

Since the technologies to do that have ACTUALLY become global electronic fiat frauds, backed by weapons of mass destruction, such as atomic bombs, our real problems are trillions of times WORSE than ever before in human history. The triumph of the international banksters' conspiracies are relatively trivial in that context, although there is no doubt that they were the main driving forces for a few Centuries of history.

Carroll Quigley in his book, Tragedy and Hope, wrote that:

"The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreement, arrived at in frequent meetings and conferences. The apex was to be the Bank for International Settlements in Basel, Switzerland."

Quigly also wrote a book on The Anglo-American Establishment. I would amend that to be the Anglo-American (Zionist) Establishment. It is simply the best organized gang of criminals, which has been able to take control of almost all governments in the world, through the systematic and persistent application of the methods of organized crime. However, there are deeper and deeper levels that one should appreciate. Those deeper levels travel through political economy, into human ecology, which means that when thinking about them, one travels through the debt controls into the death controls, because what actually exists, and must exist, are COMBINED MONEY/MURDER SYSTEMS.

First, government itself became the biggest form of organized crime, which was therefore so readily taken over by the best organized gang of criminals, the international bankers, which were very appropriately described as the biggest gangsters, or the banksters. Second, there are chronic political problems inherent in the nature of life. Third, human beings have primarily resolved those problems through the history of warfare, which has created a civilization that operates itself on the basis of the maximum possible deceits and frauds.

While I totally agree that the reign of central banks should be ended. That necessarily means that I assert that we should develop better death controls, to back up better debt controls, in a new combined money/murder system, because there is no point in talking about "Ending the Fed" unless one talks about how the international bankers "have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance."

There is no practical point in polite, superficial discussions of the Fed that ignore that reality. Obviously, the von Mises Institute is a collection of characteristically controlled opposition, or reactionary revolutionaries, which could be metaphorically described as Black Sheep, in comparison to the Vicious Wolves, the banksters.  However, that level of recognition of the social facts is still too superficial. The deeper problems are with respect to human ecology being based upon death controls, which manifested through warfare whose success was based on backing up deceits with destruction. That history of War Kings created the powers of sovereign states, which were covertly taken over by the Fraud Kings, or the Central Banks. However, that does NOT mean that "Ending the Fed" would resolve any of the deeper human ecology problems, much less the runaway problems that now exist within industrial and natural ecologies.

THE MAIN PROBLEM WITH "ENDING THE FED" IS THAT ALMOST NOBODY AGREES ON WHAT TO REPLACE IT WITH. If the currently dominant best organized gang of criminals, which are controlling the globalized Neolithic Civilization, were to lose control, and so, permit some transition to some possible Translithic Civilization, that is beset with the same chronic political problems as always, namely, that there must be some death controls, operating through some murder systems, as the central controls of everything else, BUT, THOSE HAVE ALWAYS OPERATED THROUGH THE MAXIMUM POSSIBLE DECEITS ABOUT THEMSELVES, INCLUDING THAT THEIR CONTROLLED OPPOSITION DENIES THE BASIC FACTS OF NATURAL SELECTION, WHICH MANIFEST IN HUMAN FORMS AS ARTIFICIAL SELECTION, SO THAT, SO FAR, ALL THE ACTUAL ARTIFICIAL SELECTION TENDED TO BE DONE THROUGH THE MAXIMUM POSSIBLE DECEITS ABOUT ITSELF, WHICH WORKED WELL IN THE SHORT-TERM, BUT THEN, DISASTROUSLY IN THE LONGER TERM.

The Federal Reserve Board has had a Century of runaway triumph of financial frauds, growing its system of debt slavery at exponential rates towards the point where its numbers have become debt insanities.  We appear on the verge of those mathematically insane numbers of debt collapsing into chaos. Furthermore, our whole civilization has developed on the basis of being directed by integrated systems of legalized lies, backed by legalized violence, which have generally been able to deliberately ignore the laws of nature, as well as common sense. Therefore, our entire style of civilization has been built on exponential growth overshooting, since it was always controlled by fundamentally fraudulent financial accounting systems.

The deeper problems are that human realities are always organized lies, operating organized robberies, in which there were dynamic equlibria between those different systems. In that context, the Federal Reserve Board is suffering from the paradox of final failure from too much successful debt slavery driving itself to generate debt insanity. However, since the debt controls actually always depended upon deeper and deeper levels of death controls, the runaway debt insanity numbers are threatening to collapse into some chaos of death insanities. Furthermore, no other genuine solutions could actually exist that were not some new systems of death controls, BUT, those continue to be extremely problematic because the real history of those has been successful warfare based upon deceits, in which context all of the major religions and ideologies were various degrees of the biggest bullies' bullshit social stories, which denied the basic facts, in different possible ways.

In that context, "Ending the Fed" could result from the Fed driving itself through mad self-destruction, due to the paradox of final failure from too much successful debt slavery, creating debt insanities, which possibly triggers ensuing death insanities ... Eventually, the possible survivors would have to develop some new dynamic equilibria between future surviving systems of organized lies, operating organized robberies, probably growing from some seeds of the old systems. However, those would have to struggle to emerge in a world where most of the previously existing natural capital had been excessively degraded, due to civilization maximizing short-term benefits, by directing everything it did with a fundamental fraudulent financial accounting system, in ways which were able to get away with deliberately discounting the longer term costs, WHICH IS THE FUNDAMENTAL NATURE OF TRIUMPHANT FRAUDS.

Therefore, I REPEAT, the von Mises' style of approach is way too shallow, and deliberately does not address the deeper problems regarding any possible "Ending of the Fed." The first level of those problems are that the Fed was actually built by international bankers that "used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance." The second level of those problems is WHY that has to continue to be done in better ways, because the chronic political problems inherent in human ecology have no other options, (unless there was TOTAL human extinction.) As long as any human life continues, then there IS, and MUST BE, some human ecology, in which natural selection manifests as some form of artificial selection. The current ways that work are that the international banksters have collectively become a group of trillionaire mass murderers. The only genuinely better solutions would require operating better death controls, to back up better debt controls. That is theoretically possible, BUT, beset with the thoroughly developed ways that Neolithic style of civilization is almost totally based upon lies, backed by violence, maintaining ignorance and fear, so that better solutions to our chronic political problems appear to be practically impossible, especially since advances in science and technologies have amplified our problems to become trillions of times worse than ever before in human history.

Sat, 12/07/2013 - 00:08 | Link to Comment monad
Sat, 12/07/2013 - 14:52 | Link to Comment Radical Marijuana
Radical Marijuana's picture

For sure, monad, I was always very favourably impressed by the statements from William Cooper!

P.S.

Listening to Cooper discuss the various false fronts and false flags, etc., made me wonder about the alleged quote that I had thought I was making from something said by President Madison. However, I looked into that, and discovered that quote was MISTAKEN:

http://en.wikiquote.org/wiki/James_Madison

Misattributed

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance." Olive Cushing Dwinell (1946). The Story of Our Money. Boston, Massachusetts: Meador Publishing Company. p. 71. This is in an author's note following a quote by Alexander Hamilton. After the author's note there is the sentence "From Writings of Madison, previously quoted. Vol. 2, Page 14." This is apparently an editor's error since the note is clearly Dwinell's.

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