View Full Version : Legislation: Ron Paul Will Have Last Laugh When it Comes to The Fed

07-10-2009, 10:39 AM

The Fed Struggles to Maintain Powers and “Independence” 0 comments
Jul 10, 2009 12:08 pm

Ron Paul may have been locked-out of the U.S. presidential race by the corporate-controlled media, but he may have “the last laugh” - as he rallies Congress to take on the bankster-cabal known as the Federal Reserve. Clearly the rich-and-powerful are not amused.

Fed vice-chairman Donald Kohn was the mouthpiece given the task of defending this corrupt syndicate on Thursday. “Any substantial erosion of the Federal Reserve's monetary independence would likely lead to higher long-term interest rates as investors begin to fear future inflation,” said Kohn, in a Reuters article.

Quite an interesting claim. The Fed is a small group of private bankers, many of whom are not Americans. One would assume that if the U.S. government were to gain some small amount of control over this private cabal that this would be the beginning of “independence” for the Federal Reserve, not the end of it.

Then there is the last half of Kohn's comical statement: that inserting some government control over the Fed's operations would raise long-term interest rates and inflation “fears”. Kohn didn't elaborate on this claim, because it is totally specious. In less than a century since the Fed was given exclusive authority to protect and stabilize the U.S. dollar, it has lost 97% of its value. Put another way, the Fed has inflated-away 97% of the dollar's purchasing power. It is hard to imagine how inserting a minimal amount of government control could further erode the Fed's dismal history of failure.

As for causing higher long-term interest rates, those rising rates have been assured through “quantitative easing” and through dumping trillions of dollars of U.S. Treasuries onto an already-saturated market. The main reason that the U.S. is needing to raise so much money is because of the $10 TRILLION in hand-outs, loans, and guarantees given to the U.S. financial crime syndicate.

This is the same financial crime syndicate for which the Fed is the principal regulator. Had the Fed not willfully turned a “blind eye” to the crime-spree of these fraud-factories (see “U.S. bank-fraud SYSTEMIC and INTENTIONAL – William Black”), then there would never have been a need for all these trillions in corporate welfare.

In addition, it was the Fed's idea to engage in “quantitative easing” (another name for printing money to pretend to pay bills). Every time in history that an economy has started down this “slippery slope” it has ended up in hyperinflation, or something very close to it. An inevitable consequence of “quantitative easing” is high interest rates – as no one wants to commit capital to a dying currency, unless bribed to do so with much higher interest rates.

In other words, what Kohn is warning would happen if the Fed lost “independence” is already occurring today. Clearly, the intentions of the private bankers of the Fed is to attempt to blame someone else for the problems of their own creation.

However, Kohn saved his best joke for last – arguing that the Federal Reserve should continue to have primary authority over “consumer protection.” To start with, there was absolutely no reason that a group of private bankers should have ever been given principal authority for “consumer protection.” As Wall Street's recent multi-trillion dollar Ponzi-scheme demonstrates unequivocally, it is private bankers from whom Americans need the most “consumer protection”. Allowing the Fed to maintain this authority is the equivalent of hiring a serial-rapist to be a “security guard” for an all-female college dormitory.

Ultimately, since the Fed is already causing all the problems that were mentioned in Kohn's “warning”, his pathetic “defense” of the Fed is not an argument for maintaining the status quo, but rather for abolishing the Fed, altogether.

Don't expect to hear this analysis from the corporate-controlled media, however. The goal of the propaganda-machine is to spread disinformation, and to preserve the power of the corrupt, economic elites. The fact that the propagandists cannot do any better than this feeble defense (which totally defies any logic) is proof of the lack of justification for the actions of the bankster-oligarchs, and the complete absence of accountability during the near-century in which the Fed has been allowed to abuse its powers.

One can only hope that these arrogant elitists continue to “defend” themselves loudly and frequently – as every time they open their mouths they provide more ammunition for those who want to depose these oligarchs.
Themes: U.S. financial sector, U.S. propaganda