MONEY: The creature from Jekyll Island – the Fed!

Thursday, April 2, 2009

Should We Kill the Fed?
by Patrick J. Buchanan

*** begin quote ***

Should not this creature from Jekyll Island, for all its manifold crimes and sins against the republic, also be summarily put to death?

*** end quote ***

The Federal Reserve Bank!

It’s neither ‘federal” since not even the US Congress can get its books audited.

It “reserves” nothing; it merely manipulates and prints.

And, it’s not a “bank”.

So what is it?

What is the creature from Jekyll Island?

(The name comes from the location of a secret collusion between bankers where the arrangement was hammered out.)

It’s a price fixing cartel a la OPEC for “american” banks.

As PJB alludes, Andrew Jackson must be rolling over in his grave, he killed one of it’s predecessors the “United States Bank”.

Of course, I agree that if we had commodity money, we would NOT have the artificial booms and busts that come with manipulating interest rates. Interest rates are the key indicator to business as to what projects are worth doing and what are not. AND, without a fiat currency, (where the Fed prints all the Congress can spend), the Congress would be restrained in its spending. AND, our poor and those on fixed income wouldn’t have to pay the brunt of the “inflation tax”.

Before leaving the Gold Standard in 1913 and before the FED embarked on manipulating us for the benefit of the rich and their banks, America was in decades of stable slightly declining prices. Money was a stable store of value.

(“Money is a matter of functions four, a medium, a measure, a standard, a store.” p116 in my novel “CHURCH 10●19●62”)

How does one plan in post WW1 Germany, Argentina in the 80’s, Zimbabwe today, or the USA in the next decade? Runaway inflation of the money supply and high interest rates are going to hurt everyone.

I have only heard one real objection and one minor objection to the Gold Standard.

Bob Brinker (bobbrinker dot com) had the minor objection that there would no ability for the government to supply stimulus to the economy with monetary policy. That’s is the problem, Bob; the politicians want inflation so they can spend to buy votes, reward their friends, and punish their enemies.

More substantially, Brinker objected to giving Congress the power to value money. He feared runaway inflation as the the COngress, as did the French Kings, inflate uncontrollably. That we agree on. Congress is like drunken sailors. Except their ship is always in.

Returning to the Gold Standard, where a dollar is defined as some amount of gold and / or silver, will impose discipline on the world.

How do we get there?

Let people be free to use whatever they want for money. The King, the government, the criminals in DC should just repeal the mandatory tender laws that force everyone to accept the dollar. The marketplace will quickly adjust.

And, Americans can get back to work.

# # # # #

INTERESTING: Obama’s White House play book

Thursday, April 2, 2009

The President Is ‘Keeping Score’
Chicago politics has moved into the White House.

*** begin quote ***

Alinsky’s 1971 book, “Rules for Radicals,” is a favorite of the Obamas. Michele Obama quoted it at the Democratic Convention. One Alinsky tactic is to “Pick the target, freeze it, personalize it, and polarize it.” That’s what the White House did in targeting Rush Limbaugh, Rick Santelli and Jim Cramer. (The president’s press secretary, Robert Gibbs, went so far as to lash all three from the White House press podium.) It may also explain Mr. Obama’s comments to Mr. DeFazio.

*** end quote ***

It’s the same old tired politics as usual. The Big Government D’s took over from the Big Government R’s and are spending our posterity into servitude. And, they don’t realize it.

But we old farts should and resist.

Guess that will put me on an enemies list somewhere.

I hate all the politicians.

# # # # #

INTERESTING: Counterfeit aka fiat money messes up all calculations

Thursday, April 2, 2009

Would Cleansing Banks’ Balance Sheets Kick-start the US Economy?
by Frank Shostak

*** begin quote ***

Again, note that what makes the lending possible here is not money but the saved consumer goods. Money just serves here as a facilitator. Or we can say that the act of lending here is about the transfer of final consumer goods from lender to a borrower with the help of money.

The essence of credit will not be altered by the introduction of banks. Instead of lending money directly, John could now engage in lending through the intermediary. (John transfers his money to the bank. The bank lends the money to a borrower.)

Real savings determines the size of credit. What people really want is real stuff, i.e., real savings and not money as such. Hence, as long as banks facilitate credit that is fully backed by real savings, they should be seen as the agents in the transmission of wealth.

*** end quote ***

(Disclaimer: I’m an injineer that got D’s in economics.)

This little morality play about savings misses three factors that I think are significant.

The theft of money by inflation. It in effect “steals” from every dollar holder and acts as a hidden tax.

The interest rate controlled by the central bank “taxes” savings both when the rate is too high and too low.

The baker and all who consume bread are forced to “save” by virtue of these taxes.

When money is debased, all economic calculations are done with a “broken calculator”.


As I said I’m just a dumb old injineer!

# # # # #

POLITICAL: Signs of revolution from the little people

Thursday, April 2, 2009

State of Revolution
Posted by Jack Hunter on March 23, 2009
The national movement for state sovereignty

*** begin quote ***

For now, states’ rights legislation promises to remain symbolic, unless actions by the Obama administration pushes state legislatures toward more radical methods of circumventing federal power—or high profile, mainstream conservatives finally rally the troops by promoting what could potentially be the most serious right-wing resistance against the state in recent memory. Given Conservatism Inc.‘s current track record, we’re likely to see much worse from Obama before we ever get anything useful out of them. And states’ rights-minded legislators, with no support from their national party or allegedly sympathetic “conservative” media, will be left to defend themselves and their constituents as little more than hyperbolic Confederate retreads, two steps from “shooting at the Park Service guys out at Fort Sumter” and one-step from the loony bin—for even daring to question the legitimacy of the omnipotent modern state.

*** end quote ***

At some point, how does the “Third American Revolution” start?

Collapse of the dollar? Civil unrest? Non-violent non-cooperation? In the Jury Box? Tax revolt?

Or, does the slave merely set down their burden and refuse to pick it up.

Do the “rich” just throttle back on their earnings. Retire early. Or just “give up”?

# # # # #

%d bloggers like this: