Monday, December 23, 2013

100 Years of Economic Turmoil: It's Time to 'End the Fed'!

Since the magical moment of its inception on Dec. 23, 1913, the Federal Reserve System has been a source of controversy and even contempt for a growing number of Americans, many of whom are still feeling the sting of the latest financial crisis.

A large part of the discomfort with the Federal Reserve System can be traced back to a dusty document known as the US Constitution, a historic manuscript that predates "The Fed" by 125 years, in which it clearly states (Section 8, Article 5): "Congress shall have power to coin money, regulate the value thereof."






Yet, despite its officious-sounding title, the Federal Reserve System is not an actual branch of the US government, nor does the US government have any control over its monetary monkeying, which involves the printing of money as well as setting interest rates.

These awesome powers were admitted by no less a respectable figure than Alan Greenspan, who served as Chairman of the Federal Reserve from 1987 to 2006.

"The Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take," Greenspan admitted candidly in 2007.

Although most Americans tend to ignore the functions of the Fed when times are good, it is when the economy hits turbulence that people awake from their slumber and start asking questions about its role in the US and global economy.

By far, the most outspoken critic of the Federal Reserve System has been Ron Paul, the former Congressman from Texas and three-time presidential candidate. In 2009, Paul published a New York Times bestselling book, "End the Fed," a title taken from a chant he heard at a political rally at the University of Michigan in 2007.

Paul's perennial argument that the Fed has done more harm than good for the American people seems valid when it is considered that the US dollar has depreciated 95 percent over the last 100 years, while Wall Street continues to surge.

According to Paul, "ending the Fed" would resolve some of the most persistent problems of our time.

"It would bring an end to dollar depreciation. It would take away from the government the means to fund its endless wars. It would curb the government's attacks on civil liberties..."

Others argue that the money-making institution has been the direct reason why so many individuals are failing to realize the American dream.

Curtis Ellis, executive director of the American Jobs Alliance, said the Federal Reserve System has failed when it comes to protecting regular Americans.

"It's been a dismal failure in promoting prosperity, sustainable and prolonged prosperity and raising the living standards of Americans," Ellis told RT.

Although the Federal Reserve is still very much in business, Paul's relentless efforts led to the first audit of the world's premier bank in its 100-year history. The results were nothing short of startling: From the period between December 2007 and June 2010, it was revealed that the Federal Reserve had bailed out many of the world's leading banks, corporations, and governments to the tune of $16 trillion -- more than the GDP of the US economy.

It would be hard for even the most liberal-minded economist to call this "Capitalism" with a straight face. In fact, printing money out of thin air and turning it over to broke banks and corrupt corporations seems to be yet another form of Socialism.

Bernie Sanders, the independent senator from Vermont, agrees: "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else," he said.

Full Article: http://rt.com/op-edge/end-fed-us-paul... "Leave no authority existing not responsible to the people."
—Thomas Jefferson
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Time For A New American Revolution?

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