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Ron Paul on the FED’s 100th Birthday

Posted on December 16, 2013

Next week, 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.

(For the rest of the article, click the link.)

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7 thoughts on “Ron Paul on the FED’s 100th Birthday

  1. Michael Skok says:

    It almost seems like a radical idea to end the Federal Reserve Bank. The FED is almost everywhere. I even worked at the FED typing out US Savings Bonds. Putting an end to the FED is like putting an end to the US Army. You just don't do that. But if the FED is bad for the country, that's what we must do. Obama is bad for the country. Why don't we put an end to him?

  2. WhiteFalcon says:

    The Fed should be DEAD!

  3. New School Posse says:

    People should start thinking about sovereignty for all states. Kill the evil witch. Pull the plug on Washington for good.

  4. Harry Reid has announced more than once that he will not allow an audit of the Federal Reserve. I would love to see an investigative journalism piece that identifies the real reasons why he is blocking a perfectly reasonable action. What else could it be besides corruption?

  5. Current generations have grown up with the "fed" as the norm. They really have no idea of its harmful effects or in most cases, what it actually does. "It's just always been there and that's where our money comes from." How do you end something that is such a staple in their lives? How do you show them something better? Those are the challenges before those who want to end it. The reality is that the fed is controlled by a cabal of internal bankers who really own everything. Rothchild was once offered the premiership (king) of the country and he said, "no thanks, just let me print the money." That family is one of the richest families, if not THE richest on the planet to this day! So he knew what he was saying.

  6. williefisher says:

    Some sacred cows need to be ended for the good of the country.

  7. Two quotes:

    “If, as it appears, the experiment that was called 'America' is at an end … then perhaps a fitting epitaph would be … 'here lies America the greatest nation that might have been had it not been for the Edomite bankers who first stole their money, used their stolen money to buy their politicians and press and lastly deprived them of their constitutional freedom by the most evil device yet created — The Federal Reserve Banking System.’” . . . G. D. McDaniel (1914-1998) . . .

    "Permit me to issue and control the money of a nation, and I care not who makes its laws. " . . . member of the German banking dynasty, Mayer Amschel Rothschild (1744-1812) . . .