Representative Ron Paul has got some momentum behind his ‘audit the Fed’ bill. On both sides of the aisle. And for good cause: Why shouldn’t the people have access to the records of this secretive bank, the very bank with a monopoly to mint US coin?
Trillions of dollars of stimulus funds were routed to the Fed where, ultimately, they disappeared. No one knows where they went. Apparently, not even upper Fed management. This should be troubling, especially since during just one month (March, 2009) the Fed increased its System liquidity $2.2 trillion. (See the Fed’s minutes, here: http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20090429.pdf)
They’ve also been using the money, allegedly, to not buy up toxic assets as they had promised, but to buy banks! The Fed is increasing its holdings while people like you and me are losing our homes!
Rather than giving all this money to a private bank, which has no obligation to disclose its operations to anyone – not even Congress – wouldn’t it make more sense to give funds directly to US Citizens? After all, these are our tax dollars. It’s our money to begin with. This enormous pile of cash could help struggling homeowners, buoy up new green energy businesses, and bring a revolution of real change (not merely turning the dollar into change) to bring economic stability to the world. Your share of the stimulus is well over $20,000. What would you do with that?
Trickle up is not a ridiculous as it sounds. After all, didn’t former President Bush say the best way Americans can help the economy after 9/11 was to buy a car? Or go out to eat? Be a patriot, he said, go shopping.
Instead, our government gives failing banks our money, a lot of it to the Fed which just prints money anyway. Yes, the Fed prints money out of thin air to lend to the government, so that we pay back massive interest as income tax. This is a debt-regulated economy, the value of our currency is maintained by debt – debt attached to every dollar issued. Income tax helps pull this ‘interest’ out of circulation, maintaining an artificial scarcity. It’s not a value-based scarcity, it’s a Fed based scarcity. As a result, today’s dollar is worth less than 4 cents of its 1913 value, when the Federal Reserve Act was allegedly passed. This makes the dollar one of the worst performing currencies in global history.
That’s a whole controversy we don’t need to get into. But the fact remains, this secretive bank, ultimately held privately by unknown investors, is inimical to our economy over the long term. This whole mess leads right back to it. We’ve all read the quotes by the founding fathers that bankers are more dangerous to liberty than standing armies (to paraphrase Jefferson), and so many other statements one might think we would demand real change from this system of social exploit. Instead, Obama wants to give the Fed more powers, more of our money, and continue the slide of economic destruction and exploding corporate coffers while we become homeless, powerless, utterly dependent.
Ron Paul is aware of this, and has garnered overwhelming support for his bill. It’s time we audited the Fed, and subjected them to the same scrutiny they give us. Moreover, it’s time these stimulus funds were put where they will do most good: Supporting programs to assist struggling homeowners keep their homes. It was shoddy banking policy that led millions of Americans into balloon-mortgages with insane rate adjustments. It was shoddy banking policy that created the boom and bust cycle of the last 50 years, by increasing lending with the excessive printing of ‘fake’ money. It was shoddy banking management that invented these toxic-assets, the derivative market, and made billions vanish. And it was shoddy banking policy (greed) which coerced homeowners with the promise of homeownership, only to run away with all their hard-earned cash.
Giving funds to programs that help homeowners get back on their feet would be huge. It would increase spending – folks can now afford to buy that dinner at a family restaurant. They could afford energy audits to upgrade the efficiency of their homes. And, perhaps most important of all, it would stabilize housing value.
But the banks need to live, they must survive, you can hear their plaintive cry. Meanwhile millions of Americans must be made homeless, and sacrifice their property to feed the beast. Don't get me wrong, I'm saying that the banks are the beast. A beast who's appetite breeds hunger; the more it's fed, the more ravenous it becomes. It's feeding on the constitution - has already partially digested it – and is belching up the American flag.
What we're seeing is backwards, insane economics. Yet this is what is happening, and the elite expect you not to notice. Money is just to boring, you say, or I don’t understand the economy. What is money? You ask. It doesn’t make any sense. Well, I’ll tell you. Money, today, is merely an agreement. A fabrication. A manufactured marriage. It's almost an outright lie. All of the banking and economic 'laws' are founded on our own invention to make some rich – it’s not like gravity, some fundamental law, it’s utterly contrived. Today’s money has no intrinsic worth, other than the agreement you have to accept it. Moreover, it must be regulated by debt to keep you believing it’s worth it. But as it is contrived to begin with – there’s no immutable physical law guiding it – we can simply re-invent it. In fact, we must.
It becomes necessary to reinvent money. Any system of exchange can be used in lieu of money. Abraham Lincoln tried this, with his Greenbucks. And we can too. Someone should. We need a currency backed by goods and services, our goods and services, not some Harvard banker’s lust for numbers and interest. We need a currency backed by carbon.
That said, in any historical instance where a ‘complementary currency’ was engendered to stave off massive deflation (for example, the Bavarian town of Worgl), aside from massive reductions in unemployment, increasing productivity, and economic rejuvenation on scales unseen, there has always been a central bank ready to declare such tender illegal. They want it to pay your way to jail. That way they can keep playing God, and print value on worthless bits of paper and rise above it all.
This did happen in Worgl. The owner of a coal mine was defaulting on his property simply because he couldn’t afford to pay the miners millions of Schillings a day. Wage negotiations would precede every work day, sometimes with bitter consequences. In the end, being a sharp wit, he offered to pay people with a scrip which he named after the town – the Worgl. This scrip was backed by the very coal they were mining, each redeemable for a bushel or so. The town government adopted the experiment.
Literally over night the unemployment rate tumbled, from well over 30% of the population to less than 3%. Sure enough, surrounding municipalities adopted the new ‘money’ with similar benefits to the communities. The Prime Minister of France, Edouard Dalladier, actually flew to Austria to see the ‘miracle of the Worgl.’
Soon more than 200 Austrian townships were ready to adopt the Worgl. The Central Bank panicked. Like a hoarding dragon it exerted their monopoly on German currency with flame and scales. It took the Worgl to court. It became illegal to issue ‘emergency currency,’ and the towns spiraled into economic decay and the same 30% unemployment. The economy tumbled, poverty ensued. A barrow-load of money was needed to buy a loaf of bread. The situation was ripe for the rise of an impassioned leader, someone who could feed the starving millions with rhetoric and bombastic promises.... Of course, it was Adolph Hitler, and the rest, as they say, is history.
This is America, and here we can make our own laws (supposedly). Therefore we must audit the Fed as a first step. If they won’t play ball we should start thinking about our own emergency currencies so we can weather this storm, grant municipalities ways to provide goods and services to their people. If the Federal Government won’t do it’s job, then it’s up to us to empower the States, our towns and communities. We have the constitutional right to seek happiness and liberty, not be foisted oppression under some ridiculous, elitist banking scheme.
Corporate malfeasance and elitist money-whoring are no longer acceptable. We, the American people, should not stand for it. Check out Ron Paul’s HR 1207, and audit the Fed. Do it now.