We at Liberty Maven feel that one of the most important issues of our time that American citizens need to understand is how the Federal Reserve System works, and how it is destroying our country, and therefore how important it is that we abolish it once and for all. We cannot stress this enough, so if you have previously glossed over the subject please take a moment to read this article carefully.
The Federal Reserve System is our nation’s central bank. It was created in 1913 by the passage of the Federal Reserve Act. It is a private banking cartel that has been given special powers to control our currency, the U.S. Dollar.
The Fed is an anathema to any clear-thinking person who cares for the well-being of our monetary system and our economy, and who understands the Federal Reserve’s role in the destruction of our currency. The problem is, the majority of Americans simply aren’t educated on the subject. But can the average person really be blamed? The subject is rarely, if ever, mentioned in public schools, and the only time one hears about the Fed in the mainstream media it is presented in a positive light, often as our savior.
For a quick explanation of how the Federal Reserve works, read what Richard Russel wrote last year:
Consider the following – - let’s take a situation where the U.S. government needs money. The U.S. doesn’t just issue United States Notes, which, of course it could. These notes would be dollars backed by the full faith and credit of the United States. No, the U.S. doesn’t issue dollars straight out of the U.S. Treasury.
This is what the U.S. does — it issues Treasury Bonds. The U.S. then sells these bonds to the Fed. The Fed buys the bonds. Wait, how does the Fed pay for the bonds? The Fed simply creates money “out of thin air” (book-keeping entry) with which it buys the bonds. The money that the Fed creates from nowhere then goes to the U.S. The Fed holds the U.S. bonds, and the unbelievable irony is that the U.S. then pays interest on the very bonds that the U.S. itself issued. The mind boggles.
Note that the owners of the Federal Reserve profit greatly from collecting all this interest. Read More »
President Obama unveiled the latest government plan for buying up “toxic” assets on Monday, and the stock market soared by nearly 500 points. It’s not hard to see why. Investors get the reward, while taxpayers get the risk.
Here’s what you can say in your personal comments. This latest “toxic” asset bailout is yet another scam, because . . .
For every $100 used to buy “toxic” assets, private investors will put up only $7, while taxpayers will put in a matching $7 plus $86 in loans. These are no recourse loans. In other words, if a “toxic” asset doesn’t pay off, taxpayers will eat the loss — potentially $93 out of every $100 invested.
Investors get a chance to profit, while most of the potential losses will be socialized — paid by you.
Last night Ron Paul was interviewed on the Jim Bohannon show (from a guest host) out of Pittsburgh, PA. Paul is introduced as a “major libertarian voice in Congress”.
Paul opens by admitting he didn’t watch Obama’s press conference last night and asks the host to let him know if he said something special. The host admits that Obama said nothing “terribly special”.
A large portion of the interview focuses on the financial system. Paul discusses his own beliefs for the future of the U.S. economy and the dollar.
“It’s as close to Socialism as you can get”, he says at one point.
Judge Napolitano’s liberty-full Freedom Watch show tomorrow will have the following guests and topics, as reported at FreedomWatchOnFox.com:
2:00-2:10 Glenn Beck and Shepard Smith start the show.
2:10 – 2:30 Peter Schiff (in studio) with Lew Rockwell (phone) including a special 10 minute segment from Schiff entitled “Protecting Your Assets, what you need to know about your money and investments.”
2:30 – 3:00 Ron Paul (from DC), Peter Schiff, and David Boaz (live from CATO)
Possibly other last minute guests as well.
The topics for the week will be: U.S. power to seize firms, possible 15 year depression, discussion of Austrian School of Economics, preview of Campaign for Liberty, St. Louis conference and much, much more.
Keep calling, faxing, and emailing your representatives requesting they support and cosponsor this important legislation. Apparently, your activism is working.
For a complete list and to keep updated check out the Thomas.gov page listing the cosponsors of the bill. To see the cosponsors you have to put in “HR1207″ in the search box and select “Bill Number” before doing the search. Apparently, direct linking to the results doesn’t work properly.
Ron Paul appeared on the Fox Business Channel this afternoon for a short interview. The host opens the interview with the easiest question in the world for Ron Paul, “What is the one thing that lead to the economic mess, in your opinion?”
Ron Paul answers, “Easy money”, and then elaborates a bit.
Continuing our series on taking a look at the many bills that are introduced into Congress each day, yesterday was relatively light compared to previous days, with thirty-two new bills introduced. The following are some that were obviously unconstitutional, or just plain asinine:
SR81 – A resolution supporting the goals and ideals of World Water Day.
HCR77 (also SCR12) – Recognizing and honoring the signing by President Abraham Lincoln of the legislation authorizing the establishment of collegiate programs at Gallaudet University. [What? A Congress in 2009 is giddy over some legislation from the mid 1800's?]
HR274 – Expressing support for designation of March as National Nutrition Month
HR1676 – To prevent tobacco smuggling, to ensure the collection of all tobacco taxes, and for other purposes. [The only reason people are smuggling tobacco products is because of the outrageous taxes on them. Repeal all taxes and the black market will disappear. Simple!]
HR1675 – To amend section 811 of the Cranston-Gonzalez National Affordable Housing Act to improve the program under such section for supportive housing for persons with disabilities.
HR1674 – To amend the National Consumer Cooperative Bank Act to allow for the treatment of the nonprofit corporation affiliate of the Bank as a community development financial institution for purposes of the Community Development Banking and Financial Institutions Act of 1994.
HR1673 – To amend the Emergency Economic Stabilization Act of 2008 with respect to bonus payments. [Add this one to the seven or eight other bills to do the same thing...]
HR1672 (also S-668) – To reauthorize the Northwest Straits Marine Conservation Initiative Act to promote the protection of the resources of the Northwest Straits, and for other purposes.
HR1671 – To understand and comprehensively address the oral health problems associated with methamphetamine use.
HR1670 – To amend title XIX of the Social Security Act to provide individuals with disabilities and older Americans with equal access to community-based attendant services and supports, and for other purposes.
HR1669 – To require the Secretary of the Treasury to establish a market for municipal securities, to require cooperation between the Secretary and the Chairman of the Board of Governors of the Federal Reserve System in addressing the municipal securities market situation including through the establishment of municipal securities funding facilities, and for other purposes. [The concept of municipal securities is unconstitutional, as well as the Federal Reserve Act (which created the Federal Reserve)...]
HR1666 – To amend the Internal Revenue Code of 1986 to establish an auction and revenue collection mechanism for a carbon market that ensures price stability with environmental integrity.
HR1664 – To amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation and compensation not based on performance standards.
Ron Paul once again performed his favorite job duty today by grilling Ben Bernanke and shedding light on the real problems with economic central planning and causing moral hazard through manipulation.
Sometimes I wish he’d not pontificate so much with his allotted five minutes of time and just immediately begin asking questions and follow-up questions. Of course in attempting that there is always the possibility that Bernanke would use up all the allotted time with his first answer.
This was one of the more tame Ron Paul vs. Bernanke episodes, but it’s always a joy to watch these two duke it out over the need for regulation vs. true free market ideas.
Enjoy the latest exchange between Paul and Bernanke below. (If the video says it is unavailable keep trying as it makes its way to all the Youtube servers)
Leave it to Ron Paul to separate the wheat from the chaff, so to speak, and focus attention on what’s really important. It’s clear that all the ruckus regarding the AIG bonuses is nothing more than a misdirection from the critical issues. It reminds me of the debates last fall, when Obama and McCain argued over $18 million in earmarks when neither had a negative word to say about the $700 billion bailout bill being bandied about Congress.
So in today’s Texas Straight Talk, Ron Paul’s weekly column, he is right on target:
The distraction on Capitol Hill this week has to do with the jackpot bonuses that executives at AIG recently received. The argument is over a relative drop in the bucket. The total amount of bonuses given out was $165 million. The government has put $170 billion into AIG so far. Many now are demanding we get this money back. We ought to be spending our time and effort doing something more worthwhile, like figuring out how the Federal Reserve is handling the trillions of dollars they are creating and pumping into the economy, and how that is affecting the purchasing power of dollars in your pocket.
The big mistake was appropriating the TARP funds in the first place. A Johnny-come-lately bill of attainder won’t stop the spending epidemic. This whole situation is a perfect demonstration of why “doing nothing” and letting failing companies fail would have been much better than sinking valuable money and resources into them. [Continue]
Ron Paul was interviewed by Mancow on his radio show this morning. Mancow attempted to smack Ron Paul up a bit over his earmark position, but came away satisfied with Paul’s response. They also delved into Paul’s “Federal Reserve Transparency” act HR1207.
Speaking of HR1207, I’ve finally called and emailed my Congressman requesting he support and co-sponsor the bill. For now, I feel satisfied. But I won’t be completely satisfied until he does in fact co-sponsor it and the bill is brought to a vote and passes. Whatever happened to the transparency that was promised during the TARP debate? What happened to the transparency promised by Obama during his campaign? The more things change, the more they stay the same.
There was much talk during the 2008 general election about Sarah Palin and “lipstick on a pig”. The analogy is quite appropriate now for just about every communication we reserve from the Obama administration these days. The administration is essentially an advertising PR team attempting to reframe ruinous policies with flowery words. Being fair, the Bush administration was no better, but Bush wasn’t the “change” candidate.
Let’s not call them “toxic” assets, let’s use the term “legacy”. Let’s not call them combat troops, let’s call them support personnel. Removing the sunshine and lollipops virtual reality goggles reveals an unchanged landscape.
Of course when it comes to labels for those who disagree with the administration the flowery words cease. Let’s not call them Ron Paul supporters, let’s call them domestic terrorists. Whether it’s putting lipstick on a pig or slinging mud it all ends up in the same old place–partisan politics as usual.
Sorry for the somewhat unrelated rant. Listen to the Ron Paul on Mancow interview below.
Liberty Maven
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