TYReads “One hundred years is long enough. End the Fed”

On the 100th anniversary of the creation of the Federal Reserve (FED), designed in secrecy by a group of Wall Street bankers and voted into existence by the American Congress on december 23 1913, Ron Paul publishes this article arguing that its creators have succeeded beyond their wildest dreams, and that the FED has taken total control of the american economy, and not for the good.

To illustrate Ron Paul’s message we include 2 charts. In the first one we can see the loss in purchasing power of the US Dollar from around 1900 until today. In the second one we can see the percentage silver content in the Roman Denarius from around 180 AD to 280 AD, after the government of the Antonines, when Rome went into rapid decline.

devaluation_dollar1

devaluation_denarius

The article:

After 100 Years Of Failure, It’s Time To End The Fed!

A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding. Resulting from secret negotiations between bankers and politicians at Jekyll Island, the Fed’s creation established a banking cartel and a board of government overseers that has grown ever stronger through the years. One would think this anniversary would elicit some sort of public recognition of the Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning. But just like the Fed’s creation, its 100th anniversary may come and go with only a few passing mentions.

Like many other horrible and unconstitutional pieces of legislation, the bill which created the Fed, the Federal Reserve Act, was passed under great pressure on December 23, 1913, in the waning moments before Congress recessed for Christmas with many Members already absent from those final votes. This underhanded method of pressuring Congress with such a deadline to pass the Federal Reserve Act would provide a foreshadowing of the Fed’s insidious effects on the US economy—with actions performed without transparency.

Ostensibly formed with the goal of preventing financial crises such as the Panic of 1907, the Fed has become increasingly powerful over the years. Rather than preventing financial crises, however, the Fed has constantly caused new ones. Barely a few years after its inception, the Fed’s inflationary monetary policy to help fund World War I led to the Depression of 1920. After the economy bounced back from that episode, a further injection of easy money and credit by the Fed led to the Roaring Twenties and to the Great Depression, the worst economic crisis in American history.

But even though the Fed continued to make the same mistakes over and over again, no one in Washington ever questioned the wisdom of having a central bank. Instead, after each episode the Fed was given more and more power over the economy. Even though the Fed had brought about the stagflation of the 1970s, Congress decided to formally task the Federal Reserve in 1978 with maintaining full employment and stable prices, combined with constantly adding horrendously harmful regulations. Talk about putting the inmates in charge of the asylum!

Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.

Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed.

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Ron Paul bids farewell to the USA Congress & America loses a true hero

Perhaps the most outstanding USA political figure of the last  2 generations, certainly the most underappreciated & misunderstood, two days ago Ron Paul bid his farewell speech to the USA Congress after 23 years of service.

Notice the reluctant applause at the end of the speech, a reliable sign that some truths were uttered. Best of lucks Ron Paul.

Some excerpts:

“This may well be the last time I speak on the House Floor.  At the end of the year I’ll leave Congress after 23 years in office over a 36 year period.  My goals in 1976 were the same as they are today:  promote peace and prosperity by a strict adherence to the principles of individual liberty.”

“A grand, but never mentioned, bipartisan agreement allows for the well-kept secret that keeps the spending going.  One side doesn’t give up one penny on military spending, the other side doesn’t give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and  corporate elite.”

“The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke.”

“If authoritarianism leads to poverty and war and less freedom for all individuals and is controlled by rich special interests, the people should be begging for liberty.”

“During my time in Congress the appetite for liberty has been quite weak; the understanding of its significance negligible.”

“Freedom, private property, and enforceable voluntary contracts, generate wealth.  In our early history we were very much aware of this.  But in the early part of the 20th century our politicians promoted the notion that the tax and monetary systems had to change if we were to involve ourselves in excessive domestic and military spending. That is why Congress gave us the Federal Reserve and the income tax.”

“Most of our wealth today depends on debt.”

“Without an intellectual awakening, the turning point will be driven by economic law.  A dollar crisis will bring the current out-of-control system to its knees.”

“If the underlying cause of the crisis is not understood we cannot solve our problems. The issues of warfare, welfare, deficits, inflationism, corporatism, bailouts and authoritarianism cannot be ignored.  By only expanding these policies we cannot expect good results.”

“Economic ignorance is commonplace.  Keynesianism continues to thrive, although today it is facing healthy and enthusiastic rebuttals.  Believers in military Keynesianism and domestic Keynesianism continue to desperately promote their failed policies, as the economy languishes in a deep slumber.”

“The immoral use of force is the source of man’s political problems.  Sadly, many religious groups, secular organizations, and psychopathic authoritarians endorse government initiated force to change the world.”

“Restraining aggressive behavior is one thing, but legalizing a government monopoly for initiating aggression can only lead to exhausting liberty associated with chaos, anger and the breakdown of civil society.  Permitting such authority and expecting saintly behavior from the bureaucrats and the politicians is a pipe dream.  We now have a standing army of armed bureaucrats in the TSA, CIA, FBI, Fish and Wildlife, FEMA, IRS, Corp of Engineers, etc. numbering over 100,000.  Citizens are guilty until proven innocent in the unconstitutional administrative courts.”

“Government in a free society should have no authority to meddle in social activities or the economic transactions of individuals. Nor should government meddle in the affairs of other nations. All things peaceful, even when controversial, should be permitted.”

“American now suffers from a culture of violence.  It’s easy to reject the initiation of violence against one’s neighbor…”

“Because it’s the government that initiates force, most people accept it as being legitimate.”

“This attitude has given us a policy of initiating war to “do good,” as well. It is claimed that war, to prevent war for noble purposes, is justified.  This is similar to what we were once told that:  “destroying a village to save a village” was justified.  It was said by a US Secretary of State that the loss of 500,000 Iraqis, mostly children, in the 1990s, as a result of American bombs and sanctions, was “worth it” to achieve the “good” we brought to the Iraqi people.  And look at the mess that Iraq is in today.”

“When government officials wield power over others to bail out the special interests, even with disastrous results to the average citizen, they feel no guilt for the harm they do. Those who take us into undeclared wars with many casualties resulting, never lose sleep over the death and destruction their bad decisions caused.”

“When the street criminals do the same thing, they too have no remorse, believing they are only taking what is rightfully theirs.  All moral standards become relative.  Whether it’s bailouts, privileges, government subsidies or benefits for some from inflating a currency, it’s all part of a process justified by a philosophy of forced redistribution of wealth.”

“Some argue it’s only a matter of “fairness” that those in need are cared for. There are two problems with this. First, the principle is used to provide a greater amount of benefits to the rich than the poor. Second, no one seems to be concerned about whether or not it’s fair to those who end up paying for the benefits.”

“It is self-evident that our freedoms have been severely limited and the apparent prosperity we still have, is nothing more than leftover wealth from a previous time.”

“But that illusion is now ending.”

“Under the current circumstances the most we can hope to achieve in the political process is to use it as a podium to reach the people to alert them of the nature of the crisis and the importance of their need to assume responsibility for themselves, if it is liberty that they truly seek.  Without this, a constitutionally protected free society is impossible.”

“Productivity and creativity are the true source of personal satisfaction.”

“What are the greatest dangers that the American people face today and impede the goal of a free society? There are five.”

1. The continuous attack on our civil liberties which threatens the rule of law and our ability to resist the onrush of tyranny.               

2. Violent anti-Americanism that has engulfed the world. Because the phenomenon of “blow-back” is not understood or denied, our foreign policy is destined to keep us involved in many wars that we have no business being in. National bankruptcy and a greater threat to our national security will result.                                                         

3. The ease in which we go to war, without a declaration by Congress, but accepting international authority from the UN or NATO even for preemptive wars, otherwise known as aggression.                                        

4. A financial political crisis as a consequence of excessive debt, unfunded liabilities, spending, bailouts, and gross discrepancy in wealth distribution going from the middle class to the rich. The danger of central economic planning, by the Federal Reserve must be understood.                                               

 5. World government taking over  local and US sovereignty by getting involved in the issues of war, welfare, trade, banking,  a world currency, taxes, property ownership, and private ownership of guns.

“The idealism of non-aggression and rejecting all offensive use of force should be tried.”

“Today the principle of habeas corpus, established when King John signed the Magna Carta in 1215, is under attack.”

“The Founders were convinced that a free society could not exist without a moral people.”

“Benjamin Franklin claimed “only a virtuous people are capable of freedom.”  John Adams concurred:  “Our Constitution was made for a moral and religious people.  It is wholly inadequate to the government of any other.””

“A society that boos or ridicules the Golden Rule is not a moral society.”

“The #1 responsibility for each of us is to change ourselves with hope that others will follow.”

“To achieve liberty and peace, two powerful human emotions have to be overcome.  Number one is “envy” which leads to hate and class warfare.  Number two is “intolerance” which leads to bigoted and judgmental policies.  These emotions must be replaced with a much better understanding of love, compassion, tolerance and free market economics. Freedom, when understood, brings people together. When tried, freedom is popular.”

“The problem we have faced over the years has been that economic interventionists are swayed by envy, whereas social interventionists are swayed by intolerance of habits and lifestyles.”

“I have come to one firm conviction after these many years of trying to figure out “the plain truth of things.”  The best chance for achieving peace and prosperity, for the maximum number of people world-wide, is to pursue the cause of LIBERTY.”

“If you find this to be a worthwhile message, spread it throughout the land.”

TYR 15 November 2012 reads

The Bernanke-Obama-Keynes Toxic Triangle Dead End @ Zerohedge In this article originally published in Forbes Mark Spitznagel explores Frédéric Bastiat’s observation: “The bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, at the risk of a small present evil.”

The Unabridged Ron Paul Guide To Being A Libertarian @ Zerohedge Ron Paul bids farewell to Congress. The libertarian, honest and constant enemy of the monetary debasement policies of the FED, honest and constant enemy of the imperial foreign policy of the USA government, constant advocate for a small government, sound currency and free markets, in his farewell speech summarizes the  greatest dangers that the American people face today and impede the goal of a free society. They are five:

1. The continuous attack on our civil liberties which threatens the rule of law and our ability to resist the onrush of tyranny.

2. Violent anti-Americanism that has engulfed the world. Because the phenomenon of “blow-back” is not understood or denied, our foreign policy is destined to keep us involved in many wars that we have no business being in. National bankruptcy and a greater threat to our national security will result.

3. The ease in which we go to war, without a declaration by Congress, but accepting international authority from the UN or NATO even for preemptive wars, otherwise known as aggression.

4. A financial political crisis as a consequence of excessive debt, unfunded liabilities, spending, bailouts, and gross discrepancy in wealth distribution going from the middle class to the rich. The danger of central economic planning, by the Federal Reserve must be understood.

5. World government taking over  local and US sovereignty by getting involved in the issues of war, welfare, trade, banking,  a world currency, taxes, property ownership, and private ownership of guns.