A new book by an insider exposes the damage the Fed has done to America in so many areas–politically, economically and socially. This excerpt outlines a devastating indictment of the Fed and its policies.
Source: How the Fed went from lender of last resort to destroyer of American wealth
This article was written by Ron Paul and originally published on his website. Find the original article here.
Stocks rose Wednesday following the Federal Reserve’s announcement of the first interest rate increase since 2006. However, stocks fell just two days later. One reason the positive reaction to the Fed’s announcement did not last long is that the Fed seems to lack confidence in the economy and is unsure what policies it should adopt in the future.
At her Wednesday press conference, Federal Reserve Chair Janet Yellen acknowledged continuing “cyclical weakness” in the job market. She also suggested that future rate increases are likely to be as small, or even smaller, then Wednesday’s. However, she also expressed concerns over increasing inflation, which suggests the Fed may be open to bigger rate increases.
Many investors and those who rely on interest from savings for a substantial part of their income cheered the increase. However, others expressed concern that even this small rate increase will weaken the already fragile job market.
These critics echo the claims of many economists and economic historians who blame past economic crises, including the Great Depression, on ill-timed money tightening by the Fed. While the Federal Reserve is responsible for our boom-bust economy, recessions and depressions are not caused by tight monetary policy. Instead, the real cause of economic crisis is the loose money policies that precede the Fed’s tightening.
When the Fed floods the market with artificially created money, it lowers the interest rates, which are the price of money. As the price of money, interest rates send signals to businesses and investors regarding the wisdom of making certain types of investments. When the rates are artificially lowered by the Fed instead of naturally lowered by the market, businesses and investors receive distorted signals. The result is over-investment in certain sectors of the economy, such as housing.
This creates the temporary illusion of prosperity. However, since the boom is rooted in the Fed’s manipulation of the interest rates, eventually the bubble will burst and the economy will slide into recession. While the Federal Reserve may tighten the money supply before an economic downturn, the tightening is simply a futile attempt to control the inflation resulting from the Fed’s earlier increases in the money supply.
After the bubble inevitably bursts, the Federal Reserve will inevitability try to revive the economy via new money creation, which starts the whole boom-bust cycle all over again. The only way to avoid future crashes is for the Fed to stop creating inflation and bubbles.
Some economists and policy makers claim that the way to stop the Federal Reserve from causing economic chaos is not to end the Fed but to force the Fed to adopt a “rules-based” monetary policy. Adopting rules-based monetary policy may seem like an improvement, but, because it still allows a secretive central bank to manipulate the money supply, it will still result in Fed-created booms and busts.
The only way to restore economic stability and avoid a major economic crisis is to end the Fed, or at least allow Americans to use alterative currencies. Fortunately, more Americans than ever are studying Austrian economics and working to change our monetary system.
Thanks to the efforts of this growing anti-Fed movement, Audit the Fed had twice passed the House of Representatives, and the Senate is scheduled to vote on it on January 12. Auditing the Fed, so the American people can finally learn the full truth about the Fed’s operations, is an important first step in restoring a sound monetary policy. Hopefully, the Senate will take that step and pass Audit the Fed in January.
Interesting article about how the Federal Reserve dominates the academic field of economics.
The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found.
Source: Priceless: How The Federal Reserve Bought The Economics Profession
In 1966, long before he became chairman of the U.S. Federal Reserve, Alan Greenspan wrote an article titled “Gold and Economic Freedom.” Here are a couple of excerpts:
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense — perhaps more clearly and subtly than many consistent defenders of laissez-faire — that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other….
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.
Greenspan also includes an analysis of the causes of the Great Depression. Mainstream economists blame the gold standard, but Greenspan demonstrates that it was actually by attempts of the Federal Reserve to manipulate the economy (as Ben Bernanke admitted in 2002).
Here is the whole article: Gold and Economic Freedom – Alan Greenspan
In a moment of rare candor, Ben Bernanke, chairman of the Federal Reserve, made the following comment in a speech on November 8, 2002, honoring the 90th birthday of Milton Friedman:
Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.
Here is the complete speech: http://www.federalreserve.gov/boarddocs/Speeches/2002/20021108/default.htm
Federal Reserve Open Market Committee Chairman Ben Bernanke is pulling out all the stops to kill legislation sponsored by Congressman Ron Paul to audit the Fed, this time with a November 29 op-ed column in the Sunday Washington Post. by Thomas R. Eddlem
This PowerPoint file gives a history of central banking in the United States and in particular the Federal Reserve System. Federal Reserve Exposé
“Great Myths of the Great Depression” is a fascinating analysis of the Great Depression. The popular myth is that laissez faire policies caused the Depression and government intervention was what finally ended it. Lawrence Reed points out that the Federal Reserve “presided over a dramatic contraction of the money supply that began late in the decade [of the 1920s]. The federal government’s responses to the resulting recession took a bad situation and made it far, far worse.”
Read the full story here: “Great Myths of the Great Depression”
November 10, 2009
Dear Friends of Saint Germain,
Beloved Godfre on October 12, 1974, spoke profoundly of the economy and the Federal Reserve System. He also gave us a short and powerful daily call.
Considering the divine economy, I come before you with a plea similar to that of Saint Germain, for invocations that you might be the instrument of the flow of energy and the flow of ideas being released by this special economic council of Ascended Masters meeting in Darjeeling.
For we must send forth ideas that are practical at the level of the Christ to meet the evolving needs, not only of the American people but of the people of the world. This we can do if you will make the calls, if you will invoke the light, if you will stand forth and demand the balance of the flow of supply, of demand, of cosmic abundance, of energies coming forth from the Great Central Sun and returning to the Great Central Sun.
Precious hearts, the only measures that are being taken in this hour by the heads of your government are stopgap measures, plugging the leaks. And the leaks continue to burst through. To save the economy of the world demands a revolution in economic theory, in economic practice. In order for mankind to reach the level of awareness to perceive that consciousness there must be a purging and a purification.
There must be the education of Ascended Master youth at Ascended Master Universities. There must be the preparation of souls of Light to take their place in government, in law, as statesmen not as politicians. Let the great statesmen arise once again in America! Let them arise and proclaim the liberty of the American people from the Luciferian bankers, from the Illuminati, and from that Federal Reserve System! Let them proclaim freedom. And let the coining of this nation’s money be in the hands of the people and in the hands of their representatives in Congress.
I say, then, it is time that you decreed fervently for the exposure of that lie that surrounds the entire Federal Reserve System and the tie-up of this nation’s economy with world banks and world bankers that are attempting to draw the entire energy focused in the heart of America down into the darkness of total selfishness and annihilation.
Precious hearts, I release the momentum of my being, that you might challenge the carnal mind in the economy of America. And I say, I echo the call of Saint Michael: “In the name of Jesus the Christ, I challenge the carnal mind, the Antichrist and all satanic power that has infiltrated the banks and the banking systems of the world, that has infiltrated in every aspect of the economy, on Wall Street, in the stock exchange and wherever there is the flow of the wealth of God. So let that flow, then, be in the control of the Cosmic Christ.”
Pearls of Wisdom, vol. 52, no. 17, September 1, 2009
Please study the issues regarding the economy, give this call and let your voice be heard. The hour is very late. The exposure of the betrayers of America and the Federal Reserve is an urgent necessity so please act and please do your spiritual work.
God bless you as you Keep the Flame for America and the world!
Rev. Gene Vosseler
July 17, 2009
Dear Friends of Saint Germain,
As you know the spiritual warfare is ongoing as the enemy never sleeps. This week I was moved to write a letter to the editor of the Bozeman Daily Chronicle about my concerns over the economy and the Federal Reserve. Here is an excerpt:
Will Rogers, great American humorist, once spoke a very self-evident truth, “We have the best Congress money can buy.”
The current outrageous wild spend-a-thon this Congress is on certainly demonstrates this truth. The boys and girls in the Beltway have stepped up their thieving ways. No longer content with looting Social Security restricted funds and replacing them with worthless I.O.U.’s, they are now spending trillions of dollars to supposedly fix the economy while saddling our children and children’s children with an unsustainable debt and no real economic future.
The unholy alliance between Wall Street bankers and Congress supposedly regulating them is greased by big campaign contributions and payoffs.
Meanwhile the Federal Reserve System sets interest rates and prints increasingly worthless money like there is no tomorrow. The American people can’t even get an audit of what they are doing with our money. Meanwhile, most of the American people sleep on…. This is an issue that affects all segments of society. It is an all-American issue that will affect everyone. Is this not true?
One closing thought. Humorist Mark Twin who wrote over 100 years ago, “There is no distinctly American criminal class except Congress.” Maybe it’s time, with a few exceptions, to clean house.
God bless you in the flame of truth. From the beginning we were winning!
Rev. Gene Vosseler