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Thread: Federal Reserve: Enemy of Liberty and Prosperity

  1. #1

    Federal Reserve: Enemy of Liberty and Prosperity

    http://ronpaulinstitute.org/archives...nd-prosperity/

    Written by Ron Paul
    Monday November 18, 2019

    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 where 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.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    In b4 Zippy comes to defend the indefensible?
    Quote Originally Posted by Swordsmyth View Post
    I don't really care if I happen to be wrong about your positions, you are wrong about mine.
    Quote Originally Posted by Swordsmyth View Post
    I didn't vote for Trump.
    A POX ON BOTH YOUR PARTIES

  4. #3
    Quote Originally Posted by acptulsa View Post
    In b4 Zippy comes to defend the indefensible?
    The Fed is crazy . It is easy though for people to defend central banks I think because Americans do not even understand how they work. Anyway , at some point the FRN is on the way out.
    Do something Danke

  5. #4
    Quote Originally Posted by oyarde View Post
    The Fed is crazy . It is easy though for people to defend central banks I think because Americans do not even understand how they work. Anyway , at some point the FRN is on the way out.
    It was nice of Dubya to legalize junk bonds and precipitate that crisis. Makes it easy to educate people about what the FRN is.

    "Dollar"s are now junk bonds. Pure and simple.
    Quote Originally Posted by Swordsmyth View Post
    I don't really care if I happen to be wrong about your positions, you are wrong about mine.
    Quote Originally Posted by Swordsmyth View Post
    I didn't vote for Trump.
    A POX ON BOTH YOUR PARTIES



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