Tuesday, December 17, 2013
Truth About Markets
After 100 Years Of Failure, It’s Time To End The Fed!
By Ron Paul
Essay link
A week from now, 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.
Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed's inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed.
Italians Fight for their Sovereignty back from the EU
Police charge the "pitchforks" under EU headquarters in Rome
The protesters with masks and tricolor "nooses around his neck" (movement 9dicembre) have attempted to replace the European flag with the Italian one, in protest against EU policies and for the "national sovereignty." The police charged the protesters harshly, including some wounded and stopped there seems to be Simone Di Stefano, vice president of CasaPound, Italy.
2014 Outlook for Silver
Mon 16 Dec 13
John Smith, CEO and president of Silver Standard, discusses the silver move going into 2014.
2014 Outlook for Gold
Dec. 16 (Bloomberg) -- Lear Capital CEO Scott Carter discusses the price
of gold and his investment ideas with Deirdre Bolton on Bloomberg
Television's "Money Moves."
Jim Rickards - Future of Money 2.0
Jim Richards at a conference in Bratislava, Slovakia on 26 Sep 2013
Sean Rakhimov: Silver Market "I Think We're Going to See a Turn-Around
From BeneathTheSurfaceBTS
Published on Dec 13, 2013
Sean Rakhimov, editor of Silver Strategies, provides updates on the small-cap silver market and describes when he thinks we may see a big move in the silver price.
Published on Dec 13, 2013
Sean Rakhimov, editor of Silver Strategies, provides updates on the small-cap silver market and describes when he thinks we may see a big move in the silver price.
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