Title : 11 Reasons Why The Federal Reserve Should Be Abolished
link : 11 Reasons Why The Federal Reserve Should Be Abolished
11 Reasons Why The Federal Reserve Should Be Abolished
If the American people truly understand how the Federal Reserve system works and what it has done for us, we would be screaming for it to be abolished immediately. It is a system that was designed by the international bankers for the benefit of the international bankers, and systematically impoverish the American people. The Federal Reserve system is the main reason why our currency has lost value by more than 95 percent and the national debt has won more than 5000 times larger in the last 100 years. The Fed creates our "booms" and our "busts" and have done an absolutely miserable job of managing our economy.But why do we need a group of private bankers not elected to manage our economy and print our money for us first? Would not it be much more efficient our economy function if we allow the free market to set interest rates? And according to Article I, Section 8 of the US Constitution , the US Congress is the one who is supposed to have the authority to "coin Money, regulate the Value thereof, and of the coin foreign, and fix the standard of Weights and Measures. "
Why is it that the Federal Reserve is doing? Unfortunately, this is the way it works around the world today. In fact, all 187 nations belonging to the IMF have a central bank. But the truth is that there are much better alternatives. We just have to make people educated.
The following are 11 reasons why the Federal Reserve should be abolished ... # 1 greatest period of economic growth in US history happened when there was no central bank
Did you know that the longest period of economic growth in US history It was between the Civil War and 1913? And guess what? That was a period when there was no central bank in the United States at all. The following is from Wikipedia ...
The Golden Age came the longest period of economic growth in US history. After the ephemeral panic of 1873, the economy recovered with the advent of industrialization policies and hard money. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873. The economy repeats this period growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while GDP also doubled.So if our greatest period of economic prosperity was during a time when there was no federal reserve, then why we should not test a system like this again?
# 2 The Federal reserve is systematically destroying the value of the US dollar
The United States never had a persistent problem, with inflation continuing until the Federal Reserve was created in 1913.
If you do not believe this, just check out the inflation table in this article .
The Federal Reserve systematically penalizes those who try to save their money. Inflation is a tax, and the value of each of our dollars gets a little more each day.
But over time, it really adds up. In fact, the value of the US dollar has fallen 83 percent since 1970.
Anyone going to the grocery store on a regular basis knows how inflation can be painful. The following is a list showing how the prices of many of the things we buy on a regular basis absolutely soared between 2002 and 2012 ...
Eggs: 73%
coffee: 90%
peanut butter: 40%
Milk: 26%
A loaf of white bread: 39%
Spaghetti and macaroni: 44%
orange juice: 46%
Red Delicious apples: 43%
Beer: 25%
Wine: 60%
Electricity: 42%
Margarine: 143%
Tomatoes: 22%
Turkey: 56%
minced beef: 61%
chocolate Cookies: 39%
Gasoline: 158%
Even the price of water has absolutely exploded in recent years. According to US Today , water bills have tripled in the last 12 years in some areas of the country.
So how can the Fed get away with saying that we are in an environment of " low inflation, "Well, what Ben Bernanke never tells you is that the way the government calculates inflation has changed more than 20 times since 1978.
the truth is that the real rate of inflation is somewhere between five and ten percent Sorry, but you never hear of this in the mainstream news.
# 3 the Federal Reserve is a perpetual machine debt
the Federal Reserve system was designed to be a trap. The intent of the bankers was to trap the US government in an endless spiral of debt that could never escape.
But most Americans do not understand this. In fact, most Americans do not even understand where the money comes from.
If you do not believe this, just go out and ask regular people where the money comes. The answers will be something like this ...
"Duh. - Do not know I have to get home to watch American Idol."
This is why it is so important that people educated. I think most Americans would be appalled to know that creating more money in our system also involves creating more debt.
The following is a summary of the creation of money that comes from one of my previous articles ...
When the US government decides he wants to spend another billion dollars that has not, does not print up a trillion dollars.Then what does the Fed do with those Treasuries? I went on to explain what happens ...
By contrast, the US government creates a lot of US Treasury bonds (debt) and takes them to the Federal Reserve.
The Federal Reserve creates a trillion dollars of nowhere and exchanged for US Treasury bonds ..
Treasuries US that the Federal Reserve receives in exchange for money created out of nothing are auctioned through the system of the Federal Reserve.Men like Thomas Edison and Henry Ford could not understand why we would adopt such a stupid system. For example, Thomas Edison was quoted once in the New York Times saying the following ...
But wait.
There is a problem.
Because the US government must pay interest on Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.
So where does the US government will get the money to pay that debt?
Well, the theory is that we can get money flowing through the very, very fast economy and tax at a sufficiently high rate that the government will be able to collect enough taxes to pay the debt.
But that never really happens, right?
And the creators of the Federal Reserve understood this well. It is understood that the US government not have enough money to run both the government and service the national debt. They knew that the US government He would have to keep borrowing even more money in an attempt to keep up with the game.
That is, under the old road anytime you want to add to the national wealth we are forced to add to the national debt.Unfortunately, today most Americans do not even understand how the system works. They just assume that we have the best system in the world.
Now, that's what Henry Ford wants to avoid. He thinks it's silly, and I, that for the loan of $ 30 million of his own money to the people of the United States should be required to pay $ 66 million - which is equivalent to, with interest. People who a shovelful of earth will not turn nor contribute a pound of material most money from the United States that will make people who supply the material and do the work accumulates. That is the terrible thing of interest. In all our great bond interest it is always greater than the director. All major public works cost more than double the actual cost for that reason. In the current system of doing business simply add 120 to 150 percent, the indicated cost
But here's the point. If our nation can issue a dollar bond, it can issue a dollar bill . The element that makes the bond good makes the bill good.
Unfortunately, the reality is that the system is working as international bankers who designed it had expected. The United States has the largest national debt in the history of the world, and are stealing more than 100 million of our children and our grandchildren every hour of every day in a desperate attempt to keep the spiral debt goes.
# 4 the Federal Reserve is a financial system of central planning that is the antithesis of what a free market system should be
Why we need someone to centrally plan our financial system?
not that the kinds of things that can be done in communist China?
Why do we need someone to tell us what interest rates will be?
Why do we need someone to determine that "the target inflation rate" should be?
If in fact we had a free market system the free market would be the "management" of our economía.Pero instead we have become so accustomed to central planning than any alternative they seem to be absolutely unthinkable.
for example, CNBC not you can imagine a world in which the Federal Reserve (or similar institution) was not running things ...
But suppose the law were made in books? I work in simple terms of the Fed-is managing the money supply of the nation and accomplish tasks sometimes conflicting full employment, stable prices, while the fight against inflation or deflation.I have an idea -. Let the free market "manage" interest rates in the US and the US economy
How would it affect the US economy It works then? Something has to take its place, right?
Global markets also need some kind of economic direction of the US The Fed manages the dollar - as the most important currency in the world, the void left by a Fed-less America could put these markets into chaos with the uncertainty about who manages interest rates in the US and the US economy United.
I know, it's a crazy idea, but I suspect it might work very well.
# 5 Federal Reserve creates bubbles and crises
do you remember the Internet bubble?
Or what about the housing bubble?
Al drastically distort interest rates and financial performance, the Federal Reserve creates economic bubbles and the corresponding economic busts.
and guess what?
Now happens again .
When the American people have had enough decide?
If you do not believe, have produced 10 different economic recessions since 1950. And, of course , the Federal Reserve, even admits that helped create the Great Depression of the 1930s
Maybe it's time to try something different.
# 6 Federal Reserve is a private company owned
it has been said that the Federal Reserve is as "federal" as Federal Express is.
most Americans still believe the Federal Reserve is a "federal agency" but that simply is not true. The following is of factcheck.org ...
Shareholders of the 12 regional Federal Reserve banks are private banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and state banks wishing to join and meet certain requirements. About 38 percent of the more than 8,000 banks in the nation are members of the system, and therefore have the Fed banks.And even the Federal Reserve itself has argued that it is "no is an agency " federal government in court.
So why is there still a lot of confusion about this?
should not allow a private entity owned and is dominated by banks to make decisions that dramatically affect the daily lives of all the rest of us.
# 7 Federal Reserve greatly favors the "too big to fail" banks
Since the Fed is owned by banks, should we be surprised that serve the interests of the banks?
in particular, the Federal Reserve has been very good for the "too big to fail" banks.
During the last decades, banks have grown enormously in size and power.
in 1970, the five largest US banks held 17 percent of all assets of the banking industry in the United States.
Today, the five largest US banks hold 52 percent of all assets of the banking industry in the United States.
# 8 Federal Reserve Da secrets rescues his friends
the Federal Reserve is the only institution in the US can print money from nothing and lend it to your friends anytime they wish.
for example, did you know that the Federal Reserve did $ 16 trillion loans secrets to their friends during the last financial crisis?
the following list is taken directly from page 131 a report GAO audit, and it shows that banks received secret loans Fed ...
Citigroup - $ 2,513 Trillion
Morgan Stanley - $ 2,041 Trillion
Merrill Lynch - $ 1,949 Trillion
Bank of America - $ 1,344 Trillion
Barclays PLC - $ 868 million
Bear Sterns - $ 853 million
Goldman Sachs - $ 814 million
Royal Bank of Scotland - $ 541 million
JP Morgan Chase - $ 391 million euros
Deutsche Bank - $ 354 million
UBS - $ 287 million
Credit Suisse - $ 262 million
Lehman Brothers - $ 183 million
Bank Scotland - $ 181 million
BNP Paribas - $ 175 million
Wells Fargo - $ 159 million
Dexia - $ 159 million
Wachovia - $ 142 million
Dresdner Bank - $ 135 million
Societe Generale - $ 124 million
"All other borrowers" - $ 2639000000000
If you will notice a number of banks mentioned above are foreign banks.
Why the Federal Reserve allowed to print money from nothing and lend to foreign banks?
# 9 Federal Reserve is paying banks do not lend money
Did you know that the Federal Reserve is actually paid by US banks not lend the money?
that has sense. Our economy is based on credit, and small business desperately need loans in order to operate.
But the Fed has decided to pay banks not to risk their money. Section 128 of the Economic Stabilization Act Emergency 2008 allows the Federal Reserve to pay interest on reserves of "excess" that US park banks in the Federal Reserve.
So the big banks can only send money to the Federal Reserve and watch the money comes rolling in risk-free.
As shown in the following chart shows, banks have taken advantage of this tremendous problem ...
# 10 Federal Reserve has a clue registration astonishing failure
During the last ten years, the Federal Reserve has been a total failure when it comes to managing the economy.
But despite one history of failure that would make the Chicago Cubs seems a resounding success, Barack Obama actually decided to nominate Ben Bernanke to a second term as President of the Federal Reserve.
What a mistake.
Just check out some of the things that Bernanke said before the latest financial crisis. The following is an excerpt from a lengthy article previously published ...
*****
in 2005 Bernanke said not to worry because housing prices had never fallen on a national basis before and said he believed the US will continue to experience near "full employment" ....
We've never had a decline in house prices on a national basis. Therefore, I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I do not think it will boost the economy too far from its full employment path, however.in 2005 , Bernanke also said he believes that derivatives were perfectly safe and poses no danger to the financial markets ....
With respect to safety , derivatives thereof, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and use them properly.in 2006 , Bernanke said the housing prices will probably continue to rise ....
The housing markets are cooling somewhat. Our expectation is that the decreased activity or slowdown will be moderate, that house prices will probably rise.in 2007 , Bernanke insisted that there was a problem with subprime mortgages ....
At this juncture, however, the impact on the overall economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to borrowers notch and fixed rate mortgages to all classes of borrowers continue to perform well, with low crime rates.in 2008 , Bernanke said a recession was not coming ....
The Fed is not forecasting a recession.A a few months before Fannie Mae and Freddie Mac tumbled, Bernanke insisted they were completely safe ....
The GSEs are adequately capitalized. They are not in danger of failing.*****
There are many, many more examples that may appear, but hopefully you get the point.
And now it happens again. Bernanke is telling the American people that everything will be fine and no major problems are ahead.
Is he this time believe you?
# 11 Reserve Federal unaccountable to the American people
what is the most important for most Americans political problem?
survey after survey has shown that the American people care about economy more than anything else.
So why do we allow an entity to unelected, unaccountable that is privately owned to make our economic decisions for us?
The Federal Reserve has become so powerful it has been called "the fourth estate". Every four years, presidential candidates argue over who will be the best in handling the economy, but the truth is that it is the Federal Reserve manages our economy.
We are told that the " independence " Federal Reservation is absolutely critical, but not what the American people deserve to have a voice in the functioning of the economy?
Our system is broken. It is a system that will continue to create more and more debt bubbles until finally the whole thing collapses forever.
Thomas Jefferson once said that if he could add one more amendment to the US Constitution would be a ban on all government loans ....
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article taking from the federal government the power of borrowing.But instead of banning government borrowing, we have allowed ourselves to become slaves to a system in borrowing governments actually creates our money.
do not need a central bank. There are much better alternatives. We just have to make people educated.
Please share this article with as many people as possible. These are things that every American should know about the Fed, and we need to educate the American people about the Federal Reserve, while there is still time.
This article first appeared here the economic collapse Blog . Michael Snyder is a writer, speaker and activist who writes and edits their own blogs The American Dream and Economic Collapse Blog . Follow him on Twitter here .
Source: Activist Post
"11 Reasons Why The Federal Reserve Should Be Abolished", article source: riseearth.com
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