At a basic level the idea of a central bank and clearinghouse for the United States of America makes sense. It seems apparent that big banks, medium-sized banks and small banks will from time to time need a ready supply of cash to offset short-term or momentary needs. Just as many retailers rely on wholesalers to stock and supply their products, a bank accepts deposits and loans money at a profitable rate of interest. Their cash reserves rarely equal their deposit totals, so they may find themselves short of cash even with an outstanding portfolio of performing loans. It should be apparent, however, that the Federal Reserve Bank has abused its charter and its purpose. It has become a tool of the government and global banking interests.
The elementary problem with the FED as it has been designed is that Congress has subordinated its constitutional responsibility for the coining (printing) and valuing our money to a consortium of private bankers. Odd isn’t it that despite all the overreaching by government into the private sector, it is a constitutionally mandated role or obligation that Congress chose to privatize? Why banking? Why money? The entire FED revolves around debt. As money is loaned out by individual banks, they go to the FED to restore their reserves. The FED must print the money and LOAN it to the banks. Without debt the FED would not have a real function other than the constitutional coinage one that Congress gave to it. So the bottom line is that the powers for printing money and creating debt reside with a cabal of private mega-bankers. Cheery thought, huh? You might ask “how do they create debt?” When a bank seeks additional funds for loaning, the FED creates it digitally. In other words if the local banks didn’t have the funds for additional lending, borrowers would have to go elsewhere for funds but the money supply would be more stable.
The unceasing printing (digitizing) of money expands our indebtedness and our money supply…thus generating de facto inflation. Without a corresponding surge in production of goods and services every dollar created increases the number of dollars ‘chasing” a finite supply of products or labor. More dollars chasing fewer things means higher costs. Increasing debt and inflated/lower-valued money are not recipes for a prosperous nation. In the short-term inflation may lull the unsuspecting into assuming that prosperity is flourishing, but will have the opposite effect after a time as goods and property become more difficult to purchase because of escalated prices and higher interest rates.
The FED because it is private uses the resources and wealth of the United States as its own “net worth” as it props up other national currencies and governments. The value of the dollar is directly related to the productivity of the United States, the number of dollars in circulation and the confidence that the indebtedness will be repaid. If any of those three factors experience some slippage, the corresponding effect will negatively impact the U. S. economy. If any of the three major factors underperforms, the government must collect additional revenue to maintain some level of equilibrium to avoid massive runaway inflation, excessive interest costs or severe reductions in productivity. Thus, the FED with full compliance from the government through its policies practically insures higher levels of taxation for American taxpayers. Taxes collected through force are theft. Taxes that stifle economies and intrude on individual freedom are tyrannical. Because of its power over our productivity, our indebtedness and our money supply, the FED, in effect, controls our economy. Our government increasingly controls our lives, and the Federal Reserve manipulates our livelihoods.
It should be dawning on you that as debt problems increase, taxes go up. When interest rates begin to ratchet upward due to inflated money driving the cost of borrowing higher, the governments’ needs for debt service will grow astronomically, the resultant tax increases will stifle the economy and higher taxes plus lower economic productivity joined with massive debt leads to catastrophe. It is an inescapable cycle that can at the best be postponed for a while but becomes worse during the delay. In their efforts to manipulate the market, the currency and debt, the FED will create economic bubbles that will enlarge and eventually burst. As the FED scheme and rig the system, shrewd investors will seek other avenues for avoiding the FED action….thus the bubbles will be created.
Compounding the problem of the FED’s unhealthy and unconstitutional control of the basics of our fiscal and economic systems is the fact that they operate with impunity. We the people have no standing to audit the Federal Reserve or to insist on transparent accountability. In 1913 Congress handed the keys and the car to the Wall Street manipulators and self-serving big bankers. Now Congress lacks the courage to reclaim its constitutional duty yet continues to meddle in a plethora of other unconstitutional arenas. We are now on the precipice of economic collapse. Although the nation and its people will suffer, you can wager your home and all your worldly goods that the Fed governors, their favored bankers and career politicians will emerge unscathed. Obviously….I’m FED Up.