Shut Down the Federal Reserve?

Are the fraud allegations from the article urging to Shut Down the Federal Reserve accurate? Why is there so little education about the Federal Reserve in the media, schools and universities?

Why is the Government Accountability Office not allowed a full audit of the Federal Reserve? The position that something is very wrong with the Federal Reserve is even supported by some courageous Congressmen from both parties. If their accusations are unfounded, then why aren't the democratically elected Congressmen allowed to audit the Federal Reserve's alleged fraudulent activities and private ownership? The US Constitution in Article I, Section 8, Paragraph 5, states that Congress has the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;".
Why is the Federal Reserve so secretive?



July 1, 2010
"Ron Paul’s attempt to audit the Federal Reserve, which was previously co-sponsored by 320 members of the House (HR 1207), failed by a vote of 229-198."
http://www.ronpaul.com/2010-07-01/audit ... ls-229-198


http://thomaspainereturns.net/posts/sdfr.html
"The band aids will not help the economic crisis. There is a systemic problem. The Federal Reserve and all the central banks in the world that are designed on its model are defrauding the people of the world.

There is no rational reason why the U.S. Congress cannot print its own currency. The Congress was intimidated, bribed and blackmailed into creating and maintaining the Federal Reserve Bank. The Federal Reserve was awarded a contract to manage the currency in America. The cost of that contract to the U.S. has been $10 trillion in national debt.

To try to cover for the Federal Reserve's greedy fraud, many countries are being forced to pay into the Federal Reserve coffers to keep the world economy afloat. One of the ways they are being forced to pay is through devaluation of their currencies with respect to the U.S. dollar, which is a way of building up America at the expense of others in the world.

All of the band-aid measures will fail. The problem is the Federal Reserve, which concept is founded upon debt-based currency and fraud. It must be closed down or it will continue to suck the resources of the U.S. with its currency management contract. The American government could do the Federal Reserve's job for virtually nothing, and save the U.S. taxpayers between $200 and $900 billion each year in interest off a debt that will never be paid off."



http://en.wikipedia.org/wiki/Louis_Thomas_McFadden
"McFadden is also remembered for his criticism of the Federal Reserve, which he claimed was created and operated by European banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives[2] , in which he accused the Federal Reserve of deliberately causing the Great Depression."

http://en.wikipedia.org/wiki/Huey_Long
"Long was a staunch opponent of the Federal Reserve Bank. Together with a group of Congressmen and Senators, Long believed the Federal Reserve's policies to be the true cause of the Great Depression. Long made speeches denouncing the large banking houses of Morgan and Rockefeller centered in New York which owned stock in the Federal Reserve System. He believed that they controlled the monetary system to their own benefit, instead of the general public's benefit."

http://en.wikipedia.org/wiki/Rand_Paul
"Paul opposes the Federal Reserve Act of 1913 and the Federal Reserve's control of the nations money supply and interest rates. He wants to allow the free market to regulate interest rates, and supports congresses constitutional role of controlling the money supply. Paul endorses H.R. 1207, the Federal Reserve Transparency Act, a bill introduced by Congressman Ron Paul mandating an audit of the Federal Reserve. Although Paul would abolish the Federal Reserve, he supports transparency and accountability of the semi-private institution. Additionally, Paul opposes inflation and supports "restoring the value of the dollar that has devalued by approximately 95% since the Federal Reserve's inception in 1913"."

http://en.wikipedia.org/wiki/Alan_Grayson
"Grayson is a co-sponsor of the Federal Reserve Transparency Act of 2009, which would provide addition provisions to audit the Federal Reserve, including removing several key exemptions."

Basing an economy on usury is equivalent to basing a marriage on adultery.

In principal, I wouldn't be opposed. But when looking at the situation from a pragmatic angle, I just can't see the economy running smoothly in the absence of the Fed. There needs to be an entity out there to fight deflation when panic erupts, otherwise we're stuck in a deflationary downward spiral.

That said, I think that interest rates should be based upon a consistent formula such as the Taylor Rule. The ability of top Fed officials to make arbitrary interest rate decisions is a serious problem. As we have seen during the 2000's, Fed officials often ignore statistics and trends when they have their own agenda.

Thats a terrible analogy. An economy cannot work without debt, thats just the economic facts of life.

Untrue. Each and every economic transaction required for a healthy economy can be handled without resorting to usury.

Vince, I'd be interested to hear why you think an economy can't survive w/o the Federal Reserve. It's not like they avoided the deflation of the Great Depression, which was just a correction of the massive inflating they did during the '20s. But hey, they were roaring.

Well, I don't doubt that an economy would survive in the absence of the Federal Reserve. But, I think panics and massive deflation would be more prevalent if the Fed wasn't there to fight back during periods of financial turmoil. It's basically an issue of both confidence and expectations. If the Fed doesn't pump money into the economy during a period of retraction, people will sit on their hands as they expect their money to increase in value over time. The downward deflationary spiral is a self-fulfilling prophecy that can be countered relatively smoothly by temporarily increasing the money supply and sucking it back up when confidence and expectations are positive once again.

The deflation of the 1930's was due to bank failures, which were caused by the Fed no doubt. I view the 1930's as a learning experience for the Fed and monetary policy in general.

I refer you to this:

The Case Against the Fed

It is 162 pages. But it is profoundly interesting. At least as interesting as economics go.

I actually did read that whole thing awhile back (maybe years ago, I'm not sure) when I was completely 100% anti-Fed. As I've studied economics though, my views on this subject have altered dramatically. Basically, I've gone from being a Rothbard fan to being a Friedman fan.

Whenever a Rothbard supporter is converted back to the land of reality, an angel gets its wings.

I would like to hear what the answer to the question, "What would replace the Federal Reserve?"

I am pretty sure that answer is, "Congress". But I just want to hear it from the End-The-Fed heads.

If so, that is a horrible alternative. The Fed is the lesser of the two evils.




That guy needs a new web page designer...badly.

As for the statement there is no rational reason why Congress cannot print its own money, that can only be said by an irrational person. Can you just imagine how much money would be being printed right now by the majority party? This close to an election?

Talk about devaluation!



It is not the Fed which created that debt. It is Congress. You know, that body you want to hand the keys to the currency printing press.

The first thing they would do is print a few trillion dollars.

Well, I wonder if they would print as much as was printed recently. Or if maybe they could possibly suffer more exposure and accountability for having done so. If they could be dumped in the next election.

Can't do that with the fed.

The fed is not accountable. So whats the reason for having it?

Perhaps a better job of justifying the fed is what's needed. Because there's trillion$ of reasons to get rid of it.

What do you all think about nationalizing it and ridding it of it's private entities putting it directly under the supervision of public watchdogs? You know... the very centralized bank that would make Andrew Jackson Poo his corpse.

Well, I'm not sure what I think about nationalizing anything. However, it would be better to nationalize the fed than to nationalize The People as an infinite resource serving at the pleasure of the fed, which is more the way it has become.

They have run up over 10 trillion dollars in spending and have yet to be dumped. The House has a 98 percent re-election rate.

The very reason they would print more money would be to give the illusion of prosperity just before an election.




Good. I would not want our monetary policy based on how the mob feels.



To keep our monetary policy out of the hands of the uneducated mob. It isn't perfect. It is the lesser of two evils.