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19 Reasons Why The Federal Reserve Is At The Heart Of Our Economic Problems

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March 30, 2011 – Comments (7) | RELATED TICKERS: GLD , SLV

Most Americans do not understand what the Federal Reserve is or why it is at the heart of our economic problems.  When Americans get into discussions about the economy, most of them still blame either the Democrats or the Republicans for inflation, for the housing crash, for our rampant unemployment and for the national debt.  But the truth is that the institution with the most power over our economic system is the Federal Reserve. 

So exactly what is the Federal Reserve?  Most people would say that it is an agency of the federal government.  But that is absolutely not true.  In fact, the Federal Reserve itself has argued in court that it is not an agency of the federal government.  Rather, the Federal Reserve is a privately-owned banking cartel that has been given a perpetual monopoly over our monetary system by the U.S. Congress.  This privately-owned central bank has been destroying the value of the U.S. dollar for decades, it has run our economy into the ground and it has driven the U.S. government to the brink of bankruptcy. 

The Federal Reserve operates in great secrecy, it has never been subjected to a comprehensive audit and it is not accountable to the American people.  Yet the decisions that the Federal Reserve makes have a dramatic impact on the lives of every single American citizen.

If you really want to understand what is causing our economic problems, it is absolutely crucial that you understand exactly what the Federal Reserve system is and how it is systematically destroying our economy.  Once you understand the truth about the Federal Reserve, you will view economic issues a whole lot differently.

The following are 19 reasons why the Federal Reserve is at the very heart of our economic problems…

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7 Comments – Post Your Own

#1) On March 30, 2011 at 12:54 PM, chk999 (99.98) wrote:

If the Fed is so bad, why did we have a worse boom/bust cycle back when we were on the gold standard?

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#2) On March 30, 2011 at 1:12 PM, whereaminow (58.64) wrote:

Somebody should tell the Trading Report that no matter how much they complain, the Fed will not end this year.

I'm sure the cool kids will be along shortly to let us know that non-mainstream thoughts are a waste of their time.

chk999,

We've already explained this to you.... a dozen times. Every boom was created by an expansion of currency. Doug French has done work on this back to the Tulip Bubble. Being on the gold standard doesn't keep banks and politicians from expanding the money supply. It just makes it harder.

The simple fact is that you can't stand ideas that are outside the narrow view selected for you. 

David in Qatar

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#3) On March 30, 2011 at 3:05 PM, eldemonio (98.81) wrote:

chk999,

The Fed operated within the confines of the gold standard until 1933 - you imply that the Fed ended the gold standard which is not accurate.

The Fed controls our economy - this is tremendous power that is levied out for the good of our banking industry, not for you and me.  HR 459 and S 202 must go through - make sure you check out the following link. 

http://www.ronpaul.com/congress/legislation/audit-the-federal-reserve-fed-hr-459-s202/ 

 

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#4) On March 30, 2011 at 3:55 PM, Jbay76 (< 20) wrote:

Here's more fuel for the fire

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#5) On March 30, 2011 at 4:31 PM, garyc27 (< 20) wrote:

I happened to see an old (1985?) documentary posted on google videos.  It is 3 hours and 35 minutes in length and worth taking the time to view.

http://video.google.com/videoplay?docid=-515319560256183936#

More information regarding the Money Masters including a perspective by Milton Friedman http://www.themoneymasters.com/

 

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#6) On March 30, 2011 at 9:55 PM, rfaramir (30.46) wrote:

"Most people would say that it is an agency of the federal government.  But that is absolutely not true.  In fact, the Federal Reserve itself has argued in court that it is not an agency of the federal government."

Not exactly true. Arguing it in court doesn't make it true. Examine who "owns" the Fed. Ownership has 2 main parts, benefit and control. If you are the main beneficiary, then it is either a bizarre artificial setup like a trust fund, or you own it. If you control the operations, or at least, have control over who controls it, you own it. The typical example is shareholders and a corporation: they get the benefits (after bondholders are paid), and control who runs it by voting in (and out) the board members who select the officers. The shareholders benefit from and control, and thus "own", a corporation.

For the first part, benefit, the Fed remits back to the federal Treasury most of its profits each year. For the second part, the President, with assent of the Senate, chooses the Chairman of the Fed. (Doesn't he also pick half the board members?) This demonstrates some amount of control. Together, they are not exactly an air-tight complete definition of "own", but "as federal as Federal Express" they are not.

Oh, also, tangentially, the Federal Reserve System was created by Congress, is given powers by Congress, and can thus be un-created and its powers reduced by Congress, so it is by definition a creation of the federal government.

But, of course, creation is not the whole of ownership, not even the important part, as seen above, no matter what Ayn Rand says. The creature can become greater than its creator in some instances. In this case the Fed spends more money each year than the federal government! And with less accountability! Truly a Frankenstein monster.

Other than that, EXCELLENT article!

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#7) On April 03, 2011 at 3:13 PM, loverandfighter8 (< 20) wrote:

Arguing with people like chk999 is like arguing with a dog, you won't get anywhere, so it's best to not try.  The truth is on our side and we know it.  The Federal Reserve is the greatest con in the history of the world and we should continue working to expose it. Buy Silver, Crash JPMorgan, Free Humanity!!!

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