THE HUMBLE LIBERTARIAN

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Thursday, December 20, 2018

13 Reasons to End The Federal Reserve

By: Wes Messamore
The Humble Libertarian


After the Federal Reserve hiked interest rates again this week despite sustained pressure from President Donald Trump to hold interest rates down, sending Wall Street into fits––

The Federal Reserve–– which usually operates quietly in the background with almost no awareness from most Americans whatsoever of what it is and what it does (despite the fact that it literally makes the money they use and centrally controls its supply and value in a way that rigs the economy)–– is in the headlines and the public consciousness for this very brief blip.

So let's make capital of this brief moment in time and educate our friends about the Federal Reserve.

Here are 13 reasons to End The Fed:



1. The Federal Reserve System constantly makes the money you have worth less every year by creating massive amounts of new money out of thin air and lending it for a profit.

You had to work for your money and provide actual value to society that someone would willingly give up their own money in exchange for, but the Federal Reserve banks just take value from people without giving any value in return.

This is definitely stealing...



2. The value of a $1 Federal Reserve Note in 1913 dollars (the year the Fed was created). People think an average yearly inflation rate of 2% is no big deal. "It's not much. It's only 2%!"

But when you do the math...

(Take $100 or any amount times 0.98 thirty times––

$100*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98*.98)

...half your money's gone! Every thirty years the Federal Reserve steals almost half of America's money.


The Federal Reserve Bank of Boston, Photo: Tim Sackton

3. The Fed acknowledges that it is playing by different rules than everybody else. The Federal Reserve Bank of Boston says:

"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."



4. American economist Irving Fisher said:

"Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess."



5. "Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -Modern Money Mechanics, Federal Reserve Bank of Chicago, 1975



6. If you or I did what the Federal Reserve does when it creates money, we would be found guilty of counterfeiting, a federal criminal offense that could land you in jail for 20 years.

Creating money the way the Federal Reserve Bank does is the grant of a special economic privilege that no one else is entitled to. The Federal Reserve bank is permitted to create as much money as it wants to give to itself. This is not equality or equal protection of the law. This is the law facilitating a century of mass theft.



7. Inflation steals from hardworking Americans by diminishing the value of the money they earn. This destroys the purchasing power of the American people by causing the price of everything (like groceries and gasoline) to rise. In this way, inflation works as a hidden tax–– one of the steepest and worst taxes Americans have to pay. Click the image above to get to the Federal Reserve's page with an interactive version of this graph.



8. Even John Maynard Keynes, who was one of history's most influential economists, and an advocate of central banking and the Federal Reserve, admitted that when the Federal Reserve creates money it is a way for the government to confiscate the wealth of the people secretly and unobserved, in a way that not one man in a million would detect or recognize as theft, when he said:

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."



9. Alan Greenspan wrote in one of his more honest moments before rising to Chair the Federal Reserve himself:

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

Alan Greenspan, "Gold and Economic Freedom," Published in Ayn Rand's Objectivist newsletter in 1966, and reprinted in her book, Capitalism: The Unknown Ideal, in 1967



10. Inflation hurts the poor and middle class the most because rising costs of living don't affect the lavish life-style of the wealthy nearly as much as they affect struggling middle class Americans; and rising costs can positively break the budget of poor families who are already barely making ends meet. But that hasn't stopped Democrats who pass themselves off as progressive and compassionate about the plight of the poor and working middle class Americans from taking their votes and supporting the Federal Reserve's continued war on the poor.



11. Inflation rewards people who live beyond their means and waste resources on reckless speculative investments, at the expense of people who save and invest responsibly, because it is easier to pay off today's debts denominated in today's dollars with the weaker future dollars of an inflationary currency like the Federal Reserve's U.S. Dollar. Which is probably why the top donors for George Bush, Barack Obama, Hillary Clinton, and Donald Trump are Wall Street banks. They're straight up paying these politicians in both parties to keep the party going on Wall Street and make Main Street pay for it.



12. This is also how the Federal Reserve encourages vastly excessive borrowing and debt in the economy, while massively discouraging lending and saving. In this way the Federal Reserve fuels rampant speculative investing and consumerism while keeping productive capital out of the market. As a result the Fed's never-ending creation of new dollars to give to itself and its member banks to lend at a profit–– slows actual, substantial, sustainable economic growth through the creation of genuine value, while feeding rampant over speculation and fueling market bubbles that inevitably collapse. This is what caused nearly every economic contraction for the last hundred years, and was a major cause of the 2007-2008 Wall Street Financial Crisis.



13. Before the creation of the Federal Reserve in 1913, economic contractions were called "Panics" and were usually very short lived. It was after the creation of the Fed, that the United States would sink into multiple, deep, and long-lasting recessions and depressions. In his 1962 book, Capitalism and Freedom, Nobel Prize-winning American economist, Milton Friedman said:

"I am myself persuaded, on the basis of extensive study of the historical evidence, that... the severity of each of the contractions - 1920-21, 1929-33, and 1937-38 - is directly attributable to acts of commission and omission by the Reserve authorities and would not have occurred under earlier monetary and banking arrangements." -Milton Friedman



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