The Federal Reserve was a hundred years old this week. Most in-the-know observers believe it has long outlived whatever usefulness it may have once had.
The Federal Reserve “celebrated” its one hundredth birthday this week, a fact that did not go unnoticed either by its few well wishers or its numerous detractors. One American commentator called it a centenary of failure. The recently deceased Nelson Mandela reached 95, which is considered to be a long life. Whether or not he deserved the countless plaudits that were heaped upon him, the millions who gathered in South Africa for the recent services and ceremonies chose to celebrate his life rather than to mourn his death. It is time America and the world celebrated the death of the Fed, because until we do, we will continue to mourn its existence.
The ostensible purpose of the Fed was to create a stable financial system which would lead to a sound economy, a steadily rising standard of living and full employment.
Even if one accepts the need for full employment – which is a total chimera – it is clear that like other central banks and the banking system generally the Fed has failed dismally.
Of course, there are those who would argue that it has not failed, rather that it has succeeded in doing what the conspirators who brought it into existence intended it to do, namely to give them the power to do what they want as they want when they want while us little people struggle on regardless.
Like the rest of the financial system, the Fed is a giant Ponzi scheme, money is created out of thin air and loaned at interest. Because of this, the amount loaned can never be repaid, and the American Government and indeed the world must go progressively in hoc to the banking system. Unless and until the system is reformed, this means either that taxes must continue to rise or that there must be periodic defaults. It remains to be seen if such defaults can truly be called defaults because the money was never truly owed to the banks in the first place.
There is a third way out for governments, that is inflation, which is a tax in all but name, this is why the dollar, pound, Euro...in your pocket buys less and less with each passing year, even though the cost of new technology in particular has fallen exponentially for literally hundreds of years.
As F.W. Maisel wrote in his 1983 book Great American Ripoff: An Indictment of the Federal Reserve Board: Why should blue chip American corporations pay 22% for a loan in the 1980s when a second century merchant paid 8-9%? Why indeed.
The conspiratorial origins of the Fed have now been documented by numerous scholars. There is also, unfortunately, more than a little crazy stuff, but Gary Allen’s runaway bestseller None Dare Call It Conspiracy is arguably the best introduction. You can download this from all over the place, including the Internet Archive.
Alternatively, if you don’t want to use the word conspiracy at all, this 1984 dissertation by Libertarian Murray Rothbard spells it out in plain English. The techniques used by the banksters and their frontmen are still very much alive today, and are used by a plethora of misnamed civil liberties groups and lobbies, especially in the race industry, and lately by the Organised Homosexual Movement. The bottom line is they present themselves as struggling valiantly for fairness, liberty, equality and all that jazz when really what they want is power over us, to bend us to their will, and for us to accept their myriad lies unchallenged. Judith Reisman is one of the people who have traced these pernicious influences back to the same big money.
Congressman Ron Paul is arguably the most high profile American politician who argues for the abolition of the Fed, but he like most of those who oppose it seek a return to the gold standard. This is a fallacy, what is needed is simply for the US Government to take control and to issue its own credit backed by the wealth of the nation. If credit is issued sensibly, in particular debt-free, the issue of inflation need not arise. In any case, America and the world has inflation already, just in case you hadn’t noticed.
There are many other reforms that could be passed on the financial front, but taking back the power of credit creation from the private banking mafia and putting it under the control of a democratically elected government is the first and most important step.
The Federal Reserve Act came into force on December 23, 1913, which means it is now exactly 100 years and 1 day old. Clearly we are stuck with it this Christmas, but the American people and the world could have no better Christmas present next year if Uncle Sam were to pull the plug on it. Among other things, doing so would make Obamacare redundant.
[The above op-ed was first published December 24, 2013.]
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