“However it has come about, it is more important still that the control of credit also has become dangerously centralized. It is the mere truth to say that the financial resources of the country are not at the command of those who do not submit to the direction and domination of small groups of capitalists who wish to keep the economic development of the country under their own eye and guidance. The great monopoly in this country is the monopoly of big credits. So long as that exists, our old variety and freedom and individual energy of development are out of the question. A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom. This is the greatest question of all, and to this statesmen must address themselves with an earnest determination to serve the long future and the true liberties of men.”
~ Woodrow Wilson
In short, President Wilson explained how the Federal Reserve utilizing Keynesian economics destroyed the true free market capitalism that brought about unprecedented growth in wealth throughout the United States prior to the enactment to the Federal Reserve Act of 1913.
My view on the monetary system is that, our current policy from the FED is to destroy the middle class by removing their wealth through inflation. The taxpayers of this country should not be subsidizing the bad financial decisions and solvency of corporations or other nations. The entire process of claiming that holding debt increases wealth so as we move forward the belief grows to, the greater the debt the greater the wealth, which is such a flawed perspective that it a slap in the face of common sense. You cannot use debt to create wealth; this is a formula for failure of catastrophic proportions. This is just another tool of theft and re-distribution, one that Wilson seemingly apologized for after his presidency.
At this moment in time we need some transparencies in government policies and to that end we need to audit the Federal Reserve to show all the manipulations, loans and expenditures that have been done with the taxpayer’s money. I believe that once an open view is made of all the transactions and manipulation the Federal Reserve has done it would become the catalyst for a movement to repeal the Federal Reserve Act. Our monetary system should not be a secret nor managed by foreign entities with a globalization interest. We need to go back to policies where our currency based on a commodity as prescribed by the constitution.
I completely disagree with the policies enacted by the FED in the recent and continuing crisis which, they created. The premise that quantitative easing, QE, which is nothing more than given tax monies to corporations because they lost money due to risky policies is nothing more than Corporate Welfare to the Nth degree and I wholly disagree with it. The FED created this crisis by meddling with monetary policy, monetizing debt and meddling with the credit market by artificially keeping interest rates so low that taking loans for unintelligent ultra-high risky endeavors was easy because the risk for real loss was negligible. This is the Boom/Bust cycle that is created when false growth is created by artificial manipulation of the market and currency. We need to let the market correct itself. We have a bankruptcy system in place for a reason. It worked for corporations for years and, aside from AIG managing the pension plans for all of congress, I do not see why we did not let those big companies go into bankruptcy or break them up so they cannot be “Too big to fail”.
Sadly, our current Senator John McCain, though he supported auditing the Federal Reserve, has stated,
“…the Federal Reserve should get back to its core business of responsibly managing our money supply and inflation. It needs to get out of the business of bailouts. The Fed needs to return to protecting the purchasing power of the dollar. A strong dollar will reduce energy and food prices. It will stimulate sustainable economic growth and get this economy moving again.”
Though he is right about getting out of the business of bailing out companies he forgets that they also bail out countries and more importantly, he is a proponent of the mindset that the FED should control our economy and money supply. That the FED should continue to manipulate our markets, picking monetary winners and losers, which only benefit the ultra-wealthy and the foreign investors in the Federal Reserve but will still drain of the wealth of the middle and lower class people of our country. The reason he wants them around to control the money supply is so that congress doesn’t have to control their spending habits. As congress spends more and more the FED can just have the printing presses turned on and print more money which just reduced the purchasing power of our currency. Our latest price increases, inflation, in most things have little to do with the laws of supply and demand but have everything to with the FED printing more currency making what you and I have in our wallets worth less.
I recently read an article which displayed the price for gas in 1971 being purchased with silver quarters and said that those same silver quarters today would buy the same amount of fuel based upon the value of the silver. So it made me ponder, if gas is worth the same as compared to silver then it wasn’t the cost of the goods that changed but the purchasing power of our currency had decreased and the only way that happens is by the FED having the printing presses turned on and increasing the quantity of currency. This is the hidden tax that, aside from Ron Paul, NO politician talks about, inflation through currency supply manipulation.