|Back to Back Issues Page|
Argument for Repeal of the Federal Reserve Act of 1913.
January 16, 2011
Repeal Federal Reserve Act of 1913.
Vic Biorseth, Sunday, January 16, 2011
There was never a good reason for the US government to delegate its Constitutional power to coin money and print paper currency, or to create any banking cartel, or to “protect” large banks, or to try to control any boom – bust economic cycles, or to set or control interest rates. Interest, like wages and prices, are best determined by free market forces and the law of supply and demand, as applied to money. Maintaining a stable money supply, keeping the nation’s books in order and up to date and protecting the nation’s treasure is the responsibility of the Secretary of the Treasury, not any private banking cartel to whom it may be delegated. Private banking is not the business of government. Controlling the economy is not the business of the government. Saving failing financial entities is not the business of the government.
There is no such thing as a financial institution or a private business entity that is “too big to fail.” Never was; never will be. No bankruptcy or other failure of any private enterprise is the responsibility of the innocent American tax payer, and American treasure should not be expended to bail out any business. Government has no proper business interfering with private business, and no private enterprise or cartel of them has any business controlling American national treasure in any way. Any bank that holds American national treasure has a fiduciary responsibility to protect those funds the same as similar funds of any private or public customer of the bank.
At the heart of the matter is the question of whether the American federal government is empowered, instructed and limited by the United States Constitution to govern America, or to run a cartel of private banks.
I submit that Congress violated its own responsibility and the trust of its constituency by simply delegating government authority to coin and print American currency, and it created an unhealthy relationship between “private” banking captains and “public” (government) authority. Nothing good comes from such relationships, which historically typify Fascist government relationships with private industry. The bank(s) involved no longer have bank shareholder, owner or depositor-borrower interests at heart, but submerge those more proper interests beneath “public” (government) interests. At some point it becomes impossible to tell whether the bank manager is a for-profit business man competitively providing services to depositors and borrowers, or just another government bureaucrat answering to a Führer.
The claim that the Federal Reserve exists to “smooth” economic boom-bust cycles is a lie. It is a falsehood. Here’s what I said about it in the 2008 Financial Crisis page:
Actually, I now believe that American neosocialism began earlier, under Wilson, and the Federal Reserve Act was a major part of that transformation. It helped set the stage for the government-induced economic catastrophe of 1929. Shortly after the market crash, which should have been seen as nothing more than a speculative bubble burst, and should have been left alone, the government “took charge” and made things worse. One morning, the blaring newspaper headlines read “President Orders Banks Closed!” Ordering any private enterprise to close should be something beyond the authority of any American President. But, you see, we now had a Fed, and it was virtually owned by the sitting President.
So we had businesses going belly-up, rocketing unemployment, and closed banks. People couldn’t even get access to their savings. They had no income, they couldn’t meet their bills, including their mortgage payments, and they couldn’t even access their own money, because the banks were closed by government order. Which caused more businesses to fail, and more unemployment, and more foreclosures, and more homelessness, and longer soup lines.
None of it was necessary.
Today, we still have vestiges (vestiges hell, we have monstrosities) left over from that interventionist-era still contributing to future economic calamities. Fannie Mae and Freddie Mac, given life during this era, are alive and well, heavily protected by the sitting government, still making bad loans to people who cannot pay them back, still creating future economic bubbles to burst on into future decades, again and again. These government invented entities exist for the sole purpose of making bad loans. Their true but hidden purpose is to contribute to the eventual destruction of our economy.
Does it make any sense to you that an appointed bureaucrat – a Chairman of the Federal Reserve – should have more oversight and more authority over American government treasure than the American Congress, or than the American Secretary of the Treasury? That’s funny, it doesn’t make a lot of sense to me either.
In my opinion, we never should have gone off of the Gold Reserve, and the Federal Reserve Note never should have come into being. Now, we need to do the work needed to destroy this monster before it destroys us.
That’s my opinion. What’s yours?
Respond to this article at the link below :
This article and comments may be found on the web site at the link below:
Visit Vic Biorseth on FaceBook at the link below:
|Back to Back Issues Page|