Opinion from a Libertarian ViewPoint

Posts Tagged ‘Federal Reserve’

Elephants Unseen – LewRockwell

Posted by M. C. on February 12, 2020

Thanks for your service!!! It may be a service indeed to the military/industrial complex, but the typical American only knows he’s paying for it—or else. You were probably thrilled to learn that the U.S. now has a new branch of the military, the Space Force, which will serve us by bringing democracy to Martians.

But isn’t it interesting that in the movies servants do as their masters dictate, whereas the “public servants” have US do as THEY dictate.


Certain ideas, although as outrageous as elephants in the living room, are not perceived as such because, while present, their presence is so common and expected as to render them virtually invisible. But perhaps, one day, maybe on awakening from a nap, we see them clearly and wonder “What are THEY doing here? Have I been blind?” The answer, of course, is “yes.”


If you ask someone to show you money, you will very likely be shown a dollar bill. You object: but it’s just a piece of paper! Ah, you are told, perhaps rather smugly, “We don’t need to use metals for money. We use paper for money.” But in that case, why isn’t there ten times as much paper in a TEN as in a ONE dollar bill? Afer a moment of confusion, your correspondent corrects himself. “Well, the paper isn’t actually the money, but a promise to pay money. It’s clearly labeled a NOTE.” That would be an end of the matter, were it true, but it isn’t. The company issuing the note—the Federal Reserve—will laugh at you if you present one of their notes for payment. If you look up the law establishing the Federal Reserve, you will find that its notes are “obligations of the United States,” meaning, of course, that they are obligations of the taxpayers. What an elephant! The banking cartel can go into the marketplace and use its “notes” to buy whatever it needs from the very people who will ultimately be expected to redeem the notes!

In fact, however, the notes are self-redeeming. Years ago I sent a Federal Reserve Note to the secretary of the Treasury, William Miller, with the request that he do whatever was required by law to satisfy the obligation of the United States. He promptly replied that his only obligation was to return my note, which he did. In other words, a Federal Reserve Note/government obligation redeems itself. An IOU payable with—another IOU! A veritable gang of elephants running amok through our society— and that’s just a small part of the herd!


When a prominent politician dies or retires, you will, without a doubt, hear him referred to as a “public servant.” We will be told that a nation is grateful for his years of service, and that as a mere youth, he aspired to a career as a public servant. Another whopper of an unseen elephant, perhaps because few, if any of us, have servants, or have even encountered a servant, except in the movies. But isn’t it interesting that in the movies servants do as their masters dictate, whereas the “public servants” have US do as THEY dictate. And if you actually found yourself blessed (?) with servants, would you expect them to sit you down and tell you how you were to behave, what you had to do, or not do, how much you were to pay them, what their hours would be, and how you would be punished for disobedience?

The traffic cop who tickets you for traveling five miles over the speed limit will also be referred to as a public servant, which, evidently, must mean that he is “serving” you when you gives you that ticket. And the judge in traffic court—another servant—is serving you when he fines you for committing this non-crime. What kind of servants deprive you of your money or your freedom?

A contestant on a TV quiz show, if a veteran, will likely be thanked for his service by the host. His “service” might have consisted in imposing our Rulers’ will—-democracy!!!—upon befuddled natives in some poor mid-east country, but let’s not quibble. Thanks for your service!!! It may be a service indeed to the military/industrial complex, but the typical American only knows he’s paying for it—or else. You were probably thrilled to learn that the U.S. now has a new branch of the military, the Space Force, which will serve us by bringing democracy to Martians.

Wake up and discover the pachyderm on your sofa. You’d be better off if he were to leave.

Be seeing you


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The Ron Paul Institute for Peace and Prosperity : How Congress and the Federal Reserve Stole Christmas

Posted by M. C. on December 24, 2019

Inflation is nothing more than a hidden and regressive tax. Auditing and ending the Fed should thus be a top priority of those concerned about rising income inequality and poverty, as well as those dreaming of a Christmas free of 2,000-page omnibus spending bills.

Written by Ron Paul

The bickering over impeachment did not stop the president and Congress from coming together last week to avert a government shutdown by passing a 1.4 trillion dollar spending package.

The bipartisan agreement has something for everyone — a 22 billion dollars increase to bring total spending on militarism to 738 billion dollars, and a 27 billion dollars increase to bring total spending on domestic programs to 632 billion dollars. It also imposes a national ban on selling tobacco products, including e-cigarettes, to anyone under 21.

The agreement was split into two bills. Both bills were unveiled last Monday afternoon. The bills passed the House on Tuesday, so only the House leadership and the members of the Appropriations Committee (and their staffs) who helped write the over 2,000-page deal had any idea what was in the bills. But most members voted for the spending bills because they were fearful of backlash over another Christmastime government shutdown. House leadership simply “waived” the rule requiring that all legislation be available at least three days before being voted upon.

The modern practice of funding the government via gigantic omnibus bills that are rushed into law puts the growth of government on autopilot. This practice also gives the president more influence over the budget, violating the spirit, if not the letter, of the Constitution’s grant of authority to Congress to appropriate funds, which was intended as a check on executive power.

Meanwhile, the Federal Reserve continues pumping billions into the repurchasing market. When the Fed began injecting money into the market in September, it said intervention was a temporary measure to address a short-term liquidity shortage. Three months later, the Fed is not only continuing to bail out the repurchasing market, it is preparing for other bailouts. This is further evidence that we are on the verge of another Fed-created economic crisis.

When the crisis hits, the best thing the Fed could do is not to lower interest rates below the levels set by the market. This would allow consumers, businesses, and government to liquidate their debt and restore a sound foundation for future growth. If the Fed did not interfere with the painful but necessary correction, it would only be a short time before a real economic boom commenced.

The Federal Reserve is unlikely to follow this path because of the short-term pain it would cause debt-ridden consumers and, more importantly, the pain it would cause politicians who would be forced to cut spending and/or raise taxes. But continuing to artificially lower interest rates will inevitably result in an economic crisis brought about by a rejection of the dollar’s world reserve currency status.

The Federal Reserve’s manipulation of interest rates depreciates the dollar’s value, enabling the growth of the welfare-warfare state while enriching the insiders who receive the new money before prices rise. The brunt of dollar depreciation is felt by middle- and working-class Americans whose paychecks do not keep up with the rising cost of living.

Inflation is nothing more than a hidden and regressive tax. Auditing and ending the Fed should thus be a top priority of those concerned about rising income inequality and poverty, as well as those dreaming of a Christmas free of 2,000-page omnibus spending bills.

Be seeing you




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Of Two Minds – OK Boomer, OK Fed

Posted by M. C. on December 19, 2019

Charles Hugh Smith

Eventually the younger generations will connect all the economic injustices implicit in ‘OK Boomer’ with the Fed.

Much of the cluelessness and economic inequality behind the OK Boomer meme is the result of Federal Reserve policies that have favored those who already own the assets (Boomers) that the Fed has relentlessly pumped higher, to the extreme disadvantage of younger generations who were not given the opportunity to buy assets cheap and ride the Fed wave higher.

OK Fed: you’ve destroyed price discovery, driven housing out of reach of all but the wealthy and hollowed out the economy, all the while patting yourselves on the back for being so smart and fabulous.

OK Fed: you’ve waged generational war without even acknowledging how disastrous your policies have been for younger generations. You’ve bloated the paper wealth of everyone old enough to have bought a home 20, 30 or 40 years ago and who’s had a Corporate America or government job who’s seen their 401K or pension soar because “the Fed has our back” and Fed policies have inflated one bubble in stocks and bonds after another for 25 years.

OK Fed: as a direct consequence of your free-money-for-financiers policies, inflation has gutted the purchasing power of younger generations. As the bogus consumer price (CPI) claims inflation is near-zero year after year, two generations of Americans have been crushed by student loan debt that tops $1.5 trillion– a debt serfdom that would have been impossible had interest rates been settled by market forces.

The clueless higher education cartel would have been forced to innovate decades ago rather than pass on their administrative bloat to those least able to pay, the students. Without the Fed and other federal agencies, student debt would not have exploded.

OK Fed: as a direct consequence of your pump-up-speculative-excess policies, speculation has ruined the U.S. economy as banks, financiers and corporations all skim hundreds of billions of dollars via leveraging Fed cheap money while younger generations get credit cards with nosebleed interest rates and rapacious banks that charge $25 and up for every overdraft that they engineer by manipulating when deposits are credited.

OK Fed: while you’ve been hectoring young people to buy assets so they can join your speculative asset-bubble party, they’ve been dealing with the broken mess of an economy you’ve created while patting yourself on the back, an economy where only the already-wealthy can buy a house in hot job market regions, where young workers have to work crazy-hard to keep their precarious jobs or get by on the gig economy, a happy-story code phrase for an economy in which corporations have transferred the risk to their workers while they get rich buying back their own shares with cheap Fed money.

OK Fed: eventually the younger generations will connect all the economic injustices implicit in OK Boomer with the Fed that created the ever-widening wealth and income inequality between the generations: those who effortlessly rode the Fed’s asset-bubbles to wealth and those who have been priced out of the assets and left the shards of a once-functioning economy, an economy destroyed by the Fed’s toxic worship of speculative exploitation and serial asset-bubbles.

As I have repeatedly observed here: if we don’t change the way money is created and distributed by the Fed, we change nothing.



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The Federal Reserve Is the Most Dangerous Enemy of the U.S. and Its Economy – LewRockwell

Posted by M. C. on December 19, 2019

“Give me control of a nation’s money and I care not who makes it’s laws” ~ Mayer Amschel Bauer Rothschild

The common man has no concept whatsoever of the true reality of money. This of course is by design, as the monetary process in the U.S. has been structured and presented in such a way as to make it seem extremely complicated, and outside the understanding of the dumbed-down public-schooled population.


“Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits.” ~ SIR JOSIAH STAMP, (President of the Bank of England in the 1920’s, the second richest man in Britain):

Those that control the money, control everything. This truth has never been more evident than it is today in this country, all due to the banking system’s control of all money and politics for the past 106 consecutive years. This criminal cartel has laid waste to any free market system of money, and monopolized the entirety of the fraudulent centrally planned monetary system of the United States. All this was done in their own interest, and at the expense of the general population. As mentioned above, the American citizen has allowed his slavery to this system, and that slavery is still in place today.

The common man has no concept whatsoever of the true reality of money. This of course is by design, as the monetary process in the U.S. has been structured and presented in such a way as to make it seem extremely complicated, and outside the understanding of the dumbed-down public-schooled population. Most think that money are those assets in their bank and investment accounts, while in fact, over 90% of the entire money supply is created out of thin air by the private banks that control the supply of money in the U.S. This fake money is created, loaned out, and then payable back to these same banks with interest. These are not dollars that were deposited by others; it is simply nothing that turns into money for the banks for free. A scheme at this level of corruption is pure genius so long as the general population remains in a state of unmitigated ignorance.

In addition, the so-called “representative” government, those charlatans voluntarily elected by the people, use borrowed money in order to spend, and the current public debt due to that borrowing is well over $23 trillion dollars. When the government borrows, the central banks create this money from nothing, loan it to the government in exchange for treasury bonds, and the government then adds this to public debt. It pays back from the pockets of its citizens all that money created plus interest. The banks that made the loans never had any money in the first place; they just steal every dollar from the rest of us via counterfeiting and extortion. They have zero risk, and have all the money they can print.

As James Corbett pointed out in Century of Enslavement: The History of the Federal Reserve, “The fact is that the Federal Reserve System is comprised of a Board of Governors, 12 regional banks, and an Open Market Committee. The privately-owned member banks of each Federal Reserve Bank vote on the majority of the Reserve Bank’s directors, and the directors vote on members to serve on the Federal Open Market Committee, which determines monetary policy. What’s more, Wall Street is given a prime seat at the table, with tradition holding that the president of the powerful New York Federal Reserve Bank be given the vice chairmanship of the FOMC and be made a permanent committee member. In effect, the private banks are the key determinants in the composition of the FOMC, which regulates the entire economy.”

The Federal Reserve Board in Washington, D.C., including the Board of Governors appointed by the president, is the only part of the system that has any federal aspect whatsoever, but does that board control the Federal Reserve banks? It absolutely does not, and in fact, just the opposite is the case. The banking cartel controls the money, and therefore controls the politicians and government. The Fed governors chosen by the president do not answer to the president or to the Congress. In fact, the chairman of the Federal Open Market Committee is only obligated to testify before Congress, but has no legal obligation whatsoever to that body. The government has no say at all concerning the actions of the Fed, so economically speaking; the Fed controls the entirety of the economic system.

It is not often mentioned, but the current Board of Governors members have very storied pasts, and this is telling considering their loyalties, which are to the banking system, not to the government or the people. The current chairman, Jerome Powell, has been associated with the U.S. Department of the Treasury, a partner at the corrupt Carlyle Group, which was the inner circle of The Bush family, the Saudi Royal family, Osama Bin Laden’s family and Donald Rumsfeld. He was also an investment banker in New York. The other current members have held positions as state bank commissioner, bank president, and policy advisor for FEMA and Homeland Security. They have been heavily involved with the Brookings Institute, McKinsey & Company, PIMCO, the Council on Foreign Relations, the Cynosure Group, Carlyle Group, and the International Monetary Fund. This is not nearly a complete list, but is a who’s who of big banking, major investment companies, powerful political connections, and globalist movements, many involved in extremely corrupt and profitable relationships that have close ties to war, banking, and Fed policy. Now they are in charge of the economic decisions of the country. Scandals abound concerning some of these entities, but these connections with the Federal Reserve members are rarely in the daily mainstream news. The Chairman and three others currently sitting on the Board of Governors were appointed by Trump, and this entire group, plus the heads of the Federal Reserve Banks determine the economic policy of this country.

The criminal banking cartel created the Federal Reserve, wrote its own rules, and Congress went along, and it became law. The banking magnates now regulate their own industry, have no oversight whatsoever, and have the “legal” authority to issue and fully control the entire monetary system due to their monopoly on the production of money. The conspiracy of the participants in this powerful money cartel called the Federal Reserve is fully evident with only a modicum of research, and is much deeper than can be presented here in this short article. The entirety of the Federal Reserve, including all those presidential appointees, the banking heads, the politicians, and those controlling elites behind the scenes, all collude for personal profit and power. This is appalling, and can only exist with the consent of the masses at large, those who have now apparently lost all ability to think.

This is a stacked deck, and one that benefits only the controlling class in banking, and works against the American public. The Fed is the facilitator of torture, war, and conquest because it is the supplier of money for all the horrendous activities of this terroristic government. It enriches the few in the elite class with money and power, all at the expense of the rest of society. This is corruption writ large, and it will not end until the Federal Reserve is abolished.

“Give me control of a nation’s money and I care not who makes it’s laws” ~ Mayer Amschel Bauer Rothschild




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The Ron Paul Institute for Peace and Prosperity : Federal Reserve: Enemy of Liberty and Prosperity

Posted by M. C. on November 19, 2019

Since the creation of the Federal Reserve, the US dollar has lost over 96 percent of its value. The Federal Reserve-caused decline in purchasing power is a stealth tax.

Written by Ron Paul

Lost in the media’s obsession with the impeachment circus last week was Federal Reserve Chairman Jerome Powell’s testimony on the state of the economy before the Joint Economic Committee. In his testimony, Chairman Powell warned that when the next recession inevitably occurs, the US Government’s over $23 trillion debt would prevent Congress from increasing spending to revive the economy.

Powell also said that the Fed’s current low interest rate policies would prevent the Fed from using its traditional methods of increasing the money supply and further lowering interest rates to jump-start economic growth in a recession. Hopefully, Powell is correct that when the next recession hits the Federal Reserve and Congress will be unable to “stimulate” the economy with cheap money and new spending.

Interest rates are the price of money and, as with all prices, government manipulation of interest rates distorts the signals regarding market conditions. Artificially low interest rates lead to malinvestment and the creation of bubbles. Recessions are a painful but necessary correction that allows the economy to cleanse itself of these distortions. When the Federal Reserve and Congress try to stimulate the economy, they introduce new distortions, making it impossible for the economy to heal itself. Fiscal and monetary stimulus may temporally create the illusions of prosperity, but in reality they merely create another bubble that will eventually burst starting the boom-and-bust cycle all over again. So, the best thing Congress and the Federal Reserve can do to help the economy recover from a recession is nothing.

Powell is the latest Federal Reserve Chair to warn of the dangers of government debt, which is ironic since the Federal Reserve is the great enabler of deficit spending. Government manipulation of the value of money allows politicians to hide the true costs of their warfare and welfare. This is why throughout history governments have sought the power to dictate what is and is not money and determine the value of the monetary unit. Today’s central bankers are the heirs of the medieval kings who shaved off the edges of gold coins, then ordered the people to pretend that shaved coins were just as valuable as unshaved coins.

Instead of shaving gold coins, today’s central bankers facilitate the growth of government by purchasing government securities in order to keep interest rates—and thus the government’s borrowing costs— low. The Federal Reserve’s interventions enable the expansion of government well beyond what would be politically palatable if politicians had to finance the entire welfare-warfare state through direct taxation or borrowing at market interest rates, which would increase interest rates for private sector borrowers, lower growth, and increase unemployment.

Since the creation of the Federal Reserve, the US dollar has lost over 96 percent of its value. The Federal Reserve-caused decline in purchasing power is a stealth tax. This inflation tax does not affect the financial elites—who receive new money created by the Federal Reserve before the Fed’s actions have diminished the dollar’s purchasing power—but has hurt middle-and-working class Americans whose purchasing power is continuously reduced by the Federal Reserve. The inflation tax is not just the most hidden, but the most regressive of taxes.

The Federal Reserve is responsible for the growth of government, the loss of liberty, the rise in income inequality, and the boom-and-bust economic cycle. All those who support liberty, peace, and prosperity should join the effort to audit and end the Fed.

Copyright © 2019 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.



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Something Is Wrong: The Fed Is Offering $100 Billion A Day In Loans To Unnamed Banks

Posted by M. C. on October 1, 2019

Mac Slavo

The Federal Reserve is once again secretly shelling out trillions of dollars in the dark, while Congress willingly looks the other way.  In other words, the central bank has initiated a replay of the 2007-2010 financial crisis.

You can call it QE4 if you want, or don’t call it QE4.  What it’s labeled isn’t as important as what it’s doing. Arguing semantics is not going to change the outcome.  The central bank is injecting $100 billion per day into the financial markets.  Any label on that cannot hide the fact that if this economy was doing well or was “robust” than there wouldn’t be a need for any of this.

The Federal Reserve Bank of New York first initiated its emergency overnight loans to Wall Street this year on Tuesday, September 17, starting off at the rate of $75 billion daily. It then increased its loans by adding, in addition to the $75 billion daily, 14-day term loans in the amount of $30 billion to be offered three times this past week. But after the demand for the first 14-day loan was more than double the $30 billion offered, the New York Fed boosted the next term loans to $60 billion and increased its overnight loans to $100 billion. –Wall Street on Parade

This mirrors the Great Recession of a decade ago.  When the Fed is secretly handing out money to banks at low rates to bail them out, you’ve got a repeat of the previous crisis. It’s hard to say, however, if this crisis will be worse than the last one. And simple math tells you that something is very wrong…

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Posted in Uncategorized | Tagged: , , | Leave a Comment » | Peter Schiff: Negative Interest Rates Are Boneheaded

Posted by M. C. on September 16, 2019


Donald Trump has been badgering Federal Reserve Chairman Jerome Powell for months, begging for lower interest rates. Yesterday, he took things to another level, saying that the “boneheads” at the Fed need to push rates into negative territory.

In his podcast, Peter Schiff said negative interest rates are boneheaded.

Trump used a pair of tweets to push for negative interest rates…

Trump is basically saying negative rates would allow the federal government to refinance its debt. It could roll over short-term debt into longer termed bonds and lock up the low rates. But as Peter pointed out, interest rates are already near historic lows…

The bottom line is that Trump could do what he says he wants to do right now. The “boneheads” at the Fed aren’t stopping him…

Peter said Trump is a complete hypocrite trying to pretend it’s the boneheads at the Fed.

He’s kind of like rehearsing now for the election because he wants to blame everything that has gone wrong on the Federal Reserve rather than accepting responsibility himself.”…

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Negative Interest Rates and Financial Repression | Mises Wire

Posted by M. C. on September 14, 2019

We are repeatedly told that the unprecedented monetary stimulus by the Federal Reserve and other central banks is necessary to stimulate the economy, create jobs, and generate economic growth. The truth is that this scheme is designed to stealthily steal from the productive classes in order to enrich the unproductive financial class and the counterproductive political classes. It is a con game.

Financial Repression

With politicians and central bankers seemingly gone mad with their obsession for money printing and ultra low interest rates, it is nice to know that academic economists have a term (i.e., financial repression) for the policies that have created our current economic conditions.

However, it is not a new term. Its use dates back to at least 1973 when two Stanford University economists, Edward Shaw and Ronald McKinnon, used the term in separate publications. The phrase was initially meant to criticize various policies that reduced economic growth in undeveloped countries, rather than as an indictment of the world’s leading modern economies.

Financial repression is a revolving set of policies where the government insidiously takes wealth from the private sector, and more specifically makes it easier for government to finance its debt. In today’s environment this includes:

  1. ZIRP or “zero interest rate policy” where many of the world’s central banks keep their lending rates to banks at or near zero. Naturally, this makes the interest rate on government debt lower than it otherwise would be.
  2. QE or “quantitative easing” is the central bank policy of buying up government debt from banks. This increased demand increases the price of government bonds and reduces the interest rates on those bonds.

These are the two major policies of financial repression currently in use. The combination of the two policies has allowed governments to borrow money, both short- and long-term bonds, at extremely low interest rates. This, in turn, has kept the government’s interest payments on the national debt relatively low.

Other signs of financial repression in the United States include requiring banks to hold government bonds for their capital requirements, which the Basil III accords increased; high reserve requirements, which paying interest on excess reserves effectively accomplishes; and capital controls that restrict or tax the exportation of wealth. And then there is the “War on Cash.”

All these policies also come under the rubric of “macroprudential policy” under which government bureaucrats hyper-regulate and oversee the entire financial industry. Macroprudential policy provides another aspect of financial repression: government control or outright ownership of banks and financial institutions while simultaneously providing banks with barriers to competition. It is difficult to precisely define macroprudential policy, but it would seem to mean a group of imprudent policies that only make sense if you are trying to maintain the macro mess we find ourselves in.

Negative Interest Rates?

When you combine financial repression with bail-in provisions for banks and unstable currencies you end up with the nearly unfathomable phenomenon of negative nominal interest rates on government bonds. Several European countries have already sold two-year bonds for more than their face value, so that bond buyers are paying more than 1,000 euros for which they will only receive 1,000 euros in two years time.

Why would anyone accept that deal if you could just hold the 1,000 euros in cash? Well, there is the natural inclination to keep your money safe in a bank. So people with vast sums of money do not want to keep several million euros in cash. They would rather keep it in a bank and earn interest.

The problem with that approach is that banks are not paying interest and, more importantly, some governments have established bail-in provisions for systemically important big banks, similar to what happened during the financial crisis in Cyprus. These provisions mean that depositors in failed banks will receive “haircuts” for any uninsured deposits. A “haircut” means depositors would lose some percentage of their uninsured deposits. Alternatively, uninsured bank deposits and bonds could be exchanged for equity shares in the bank…

Across the room is the mirror image of bad government. It is based on cruelty, deceit, fraud, rage, division, war, greed, arrogance, and excessive pride. The effects of bad government are depicted with the city in ruins, demolished houses, and no commerce except for the making of armor and weapons. The city streets are deserted and out in the country two armies are poised for war.

On the side of good government sits an image of justice on a throne. Across the room, an image of tyranny sits on the throne. The panorama of the frescos is breathtaking and all too accurate, and financial repression is merely the latest contribution of the modern state to the concept of bad government.

[Originally published June 2015.]

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The Ron Paul Institute for Peace and Prosperity : Bill Dudley’s Noble Lie

Posted by M. C. on September 10, 2019

Written by Ron Paul

Former Federal Reserve official Bill Dudley’s recent op-ed calling for the Federal Reserve to implement policies that will damage President Trump’s reelection campaign states that such action would be unprecedented. Dudley claims the Federal Reserve bases its policies solely on an objective evaluation of economic conditions. This is an example of a so-called noble lie — a fiction told by elites to the masses supposedly for the people’s own good, but really designed to maintain popular support for policies that benefit the elites. Dudley’s noble lie is designed to bolster a rapidly (and deservedly) eroding trust in the Federal Reserve. The truth is the Federal Reserve has always been influenced by, and has always tried to influence, politics.

President George H.W. Bush and other members of his administration blamed his 1992 defeat on then-Federal Reserve Chairman Alan Greenspan’s refusal to reduce interest rates. Greenspan was more cooperative with Bush’s successor, Bill Clinton. Lloyd Bentsen, Clinton’s first Treasury secretary, wrote in his autobiography that the Clinton administration and the Federal Reserve had a “gentleman’s agreement” regarding support for each other’s policies. Greenspan also boosted President George W. Bush’s “ownership society” agenda by lowering interest rates after 9-11 and the collapse of the tech bubble, thus creating a housing bubble.

Ben Bernanke, Greenspan’s successor, facilitated both Bush W. Bush and Barack Obama’s bailouts, “stimulus” spending, and massive welfare-warfare spending with record-low interest rates and quantitative easing. Speculation that the Fed was keeping interest rates low during the 2016 presidential campaign in order to help Hillary Clinton was fueled by the revelation that a Federal Reserve governor donated to Clinton’s campaign.

Presidents have always tried to influence the Fed — usually pushing for lower rates to (temporally) boost the economy. President Richard Nixon was recorded joking with then-Fed Chair Arthur Burns about Fed independence. President Lyndon Johnson shoved Fed Chair William Martin against a wall after an interest rate increase. Johnson’s frustration may have been because he realized that the success or failure of his guns and butter policies was largely out of Johnson’s control. The success or failure of presidents’ agendas is often determined by a secretive central bank’s manipulations of the money supply. No wonder presidents spend so much time trying to influence the Fed.

The Fed’s history of influencing, and being influenced by, presidents is one more reason why Congress should pass the Audit the Fed bill. Auditing the Fed is supported by almost 75 percent of Americans across the political spectrum, including such leading progressives as Bernie Sanders and Tulsi Gabbard.

My Campaign for Liberty is leading a major push to get a majority of Congress members to cosponsor Audit the Fed in order to pressure House and Senate leadership to hold a vote on the bill. The American people have had enough of noble lies about the Federal Reserve. It is time for truth; it is time to audit the Fed.

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Forget the Russians: It’s the Federal Reserve Seeking to Meddle in Our Elections

Posted by M. C. on September 3, 2019

Fed President Bill Dudley. Dudley wrote that, “Trump’s re-election arguably presents a threat to the United States’ and global economy, and if the goal of monetary policy is to achieve the best long-term economic outcome, the Fed’s officials should consider how their decisions would affect the political outcome of 2020.”

Written by Ron Paul

The US Constitution never granted the federal government authority to create a central bank. The Founders, having lived through hyperinflation themselves, understood that government should never have a printing press at its disposal. But from the very beginning of America’s founding, the desire for a crony central bank was strong.
In fact, two attempts were made at creating a permanent central bank in America prior to the creation of the Fed. Fortunately, the charter for The First Bank was allowed to expire in 1811, and President Andrew Jackson closed down the Second Bank in 1833.

But, unfortunately, a third attempt was successful and the Federal Reserve was unconstitutionally created by Congress in 1913. Americans have been living under a corrupt and immoral monetary system ever since. The Federal Reserve is the printing press that has financed the creation of the largest government to ever exist. Endless welfare and endless military spending are both made possible by the Federal Reserve. The Fed can just print the money for whatever the US establishment wants, so those of us who long for a Constitutional and limited government have few tools at our disposal.

Despite all the propaganda claiming “independence,” the Fed has always been a deeply political institution. Because the Fed is a government-created monopoly with key government-appointed employees, its so-called “independence” is a mere fiction. However, the US Congress created the Fed with legislation; it can also abolish the Fed with legislation.

Last week, the facade of Federal Reserve “independence” was dealt a severe blow. Ironically, the person who broadcast to the world that the Fed is anything but “independent” was ex-New York Fed President Bill Dudley. Dudley wrote that, “Trump’s re-election arguably presents a threat to the United States’ and global economy, and if the goal of monetary policy is to achieve the best long-term economic outcome, the Fed’s officials should consider how their decisions would affect the political outcome of 2020.”

The timing of Dudley’s threats to use Fed monetary policy to affect the outcome of a US election couldn’t come at a more striking time. After all, for more than two solid years Americans have been bombarded with fabricated stories about Russians rigging our elections. And yet here is a Federal Reserve official threatening to do the same exact thing – but this time for real!

Whether it’s the mainstream media, the CIA, the FBI, or now the Federal Reserve, more and more Americans are waking up to the fact that there is a Deep State in America and its interests have nothing to do with American liberty. In fact, our liberty is what the Deep State wants to abolish.

When it comes to the Federal Reserve, I stand firmly by my conviction that it needs to be audited and then ended as soon as possible.

America’s Founders were not perfect. They were human beings just as capable of error as we are. But they had a remarkable understanding of the ideas of liberty. They understood that liberty cannot exist with a government that has access to a printing press. Sound money and liberty go hand-in-hand. If we want to enjoy the blessings of Liberty, we must audit and then end the Federal Reserve!

Be seeing you


That close

I lowered the interest rate by this much…



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