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“No Problem,” Says Federal Reserve President, a Friedman Disciple.

Written by Gary North on November 7, 2013

The Federal Reserve Bank of St. Louis is regarded as the one “Chicago School” bank among the 12 regional Federal Reserve banks. It is where the monetary views of Milton Friedman prevail. He recently referred to “the monetarist camp,” meaning Friedman’s camp, in which he included his bank’s staff.

The president of the St. Louis FED is James Bullard. In a recent CNBC interview on “Squawk Box,” he admitted that the present rate of monetary expansion by the Federal Reserve is “torrid,” but quite acceptable. The rate is $85 billion a month or $1 trillion a year. “It’s a very reasonable thing to do to substitute for the fact that you can’t lower interest rates any further.”

Reasonable. Yes. A trillion dollars a year of counterfeit money is reasonable.

He admitted this: “I’d rather get out it if we can, but I’d like to meet our goals.” What are these goals?  Low unemployment and 2% price inflation.

Price inflation, as measured by the CPI, is below 2%. So, he asked, “What’s the hurry?” The rate is at 1.2%, September to September. Note: the Median CPI, which is a better measure, is at 2%.

What about the balance sheet of the FED. It is at $3.6 trillion, up from $800 billion in the early fall of 2008? No problem!

“If you look at the size of the balance sheet relative to GDP, who’s got the biggest one, Japan, Europe, U.K., U.S.? We’re fourth out of those guys. If something bad is going to happen … with the balance sheet, these other central banks should have passed that and already had that experience and they haven’t.”

So, because the counterfeiting is international, it’s not a problem.

Will Janet Yellen change anything? Very little, he says. Why not? Because she helped craft today’s policy.

What about bubbles? These were bubbles that Greenspan denied and Bernanke denied. Bullard now says they were “blindingly obvious.” To Austrian School economists, they were blindingly obvious. To Keynesians and Chicago School economists, they were invisible. They said nothing. They did not warn the public. But he ignores this.

“Tech bubble was blindingly obvious. And the housing bubble also [was] blindingly obvious. The question is how should the Fed react to those very huge bubbles? I don’t see anything of that magnitude going on right now.”

Neither did his peers in 1999 (tech bubble) and 2005-7 (housing bubble). But Austrians did.

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5 thoughts on ““No Problem,” Says Federal Reserve President, a Friedman Disciple.

  1. Then, in 1913, a corrupt Congress and a corrupt President changed the structure of the nation's economy and stole your freedom to say "no"! The economic system was reverted to a mirror of that same system the nation fought a revolution to be free of. The power to issue money was taken away from the government and given to the bankers and from that day onward, ALL money in circulation was created as the result of a loan at interest from the bankers to the government, to business, and to the people. There is no exception. Every dollar paid in salary, spent to purchase food or gas, or paid in taxes, began as an interest bearing loan. There is no money in circulation in the United States that did not start out as a loan at interest from the bankers at the privately-owned Federal Reserve system.

    From that moment on, the freedom of the people to refuse to borrow from the banks and to refuse to pay interest was stripped away. To participate in the commerce of the United States at all means being forced to use money loaned at interest, to the profit of the bankers and the impoverishment of the public. Your freedom to say "no" was stolen by Congress in 1913, without your permission and before you were born.

    When you have lost the freedom to say "no", when you have no choice but to pay a percentage of your earnings as interest to the bankers whether in private debt or taxes to cover the gargantuan debts by the US Government itself, you are a slave to the bankers. And because more money is owed to the bankers than actually exists, because of the interest charged on the loan that created the money, the debt-slavery is permanent! No matter how hard you work, no matter how much you sacrifice, the debt can never be paid off. The system is intentionally designed to trap the nation's population permantly in unpayable debt, to make them slaves to that debt and to the bankers. This is the purpose behind the design of the Federal Reserve, the International Monitary Fund, the European Central Bank, and indeed every private central bank issuing the public currency as a loan at interest. This is why today every nation is drowning in created debt, and slaved to the private bankers. That is the reason for ever increasing taxes and decresing benefits; to pay the bankers their unpayable interest on the public currency.

    For that enslavement to succeed, your right and freedom to refuse that bank's interest-bearing money must be stripped away. The government must force you to use that private central bank's currency, loaned to you at interest, via the Legal Tender Laws. Therein lies your slave chains. You are ordered by the government, on pain of prison, to use the banker's money, and to pay the interest charged by the bankers through your taxes.

    Free people have the right to say "no." Free people have a right to decide for themselves what medium of exchange they will use and to choose not to involve the bankers!

    There is no freedom without the freedom to say "no." Slaves cannot say "no" when ordered to surrender the products of their labor to their masters.

    You are a slave.

    "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit.We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." — Woodrow Wilson 1919

    Slavery exists only because the slaves have been taught to believe that slavery is the way the world is supposed to be. Beliefs are chains used to enslave free people. No chains of steel ever bound a human tighter than the chains made of the beliefs with which we are indoctrinated while young in the state schools and the churches.

    Slaves used to be held prisoner by their belief in rule by divine right. Then the slaves regained their freedom when they realized that divine right is only an illusion created by the enslavers to trick the people into obedient servitude.

    Then slaves were held prisoner by their belief in rule by chattel ownership of one's body. Then the slaves regained their freedom when they realized that one person owning another is an illusion created by the enslavers to trick the people into obedient servitude.

    Today the modern slaves (that is YOU) are held prisoner by their belief in compound interest; that they owe money that never existed to repay money created out of thin air. And you modern slaves will regain your freedoms when you realize that private central banking is just another illusion created by the enslavers to trick you into obedient servitude.

    Stop believing.

    Cry freedom!

  2. These are the worst three posts on the topic of money I have ever read, and they were obviously written by people who haven't actually read anything else that Gary North has ever written on the topic, because he has thoroughly debunked that nonsense.

  3. dick Grace says:

    Gary north is nonsense.

  4. Well, there's a well-thought-out and highly-referenced intelligent response.

  5. I think it was a very profound and accurate description of the Federal Reserve System. Haven't you been listening to Karen Hudes, the auditor of the World Bank and Whistle blower on what the Fed is doing, or are you just a cabal spy trying to spread disinformation.