Is it Time to Abolish the Federal Reserve?

Did you get a chance to check out my chat with Noam from a year or two ago?
http://gdayworld.thepodcastnetwork.com/2005/10/27/gday-world-on-the-pod-56-noam-chomsky/

Well and good the idea to abolish the Fed except for one thing - who will perform the function of lender of last resort, which is what the Fed is? The conditions that sparked the Panic of 1907 and led to the creation of the Fed are still around and will always be around as long as banking exists. The Fed is definitely not the best-managed central bank out there, but without a lender of last resort, agencies like the FDIC will have to bail out savings accounts a lot more frequently.

Christopher S. Penn
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Credibility established, right?

No, wrong.

Chris, if you want to be a skeptic, that is fine. But do so equally. Google search Catherine Austin Fitts and find out some of the other ‘tinfoil’ theories she’s behind. The woman is a professional conspiracy theorist, not a professional economist.

Simply saying ‘I don’t believe the established story’ doesn’t make you open minded. A no-man is as dumb as a yes-man.

Search for the WHOLE story….

I’d suggest that you take a look at what the business cycle looked like prior to the Federal Reserve’s creation. Have a look here:

http://www.redstate.com/blogs/blackhedd/2007/aug/16/answer_to_ron_pauls_supporters_the_federal_reserve_is_the_lender_of_last_resort

During the 19th century, extreme boom/bust cycles were the norm - and the busts were very deep. The Fed has screwed up once (The beginning of the Great Depression), but has been mostly ok since - recessions have been mild, and booms have tended to be mild as well.

Just bear in mind what you are asking for here - a return to the pre-fed days is not all milk and honey - it has its own interesting set of problems.

You risk consipiracy-theorizing yourself into irrelevance. Stick to what you know …. “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.”
J.M. Keynes (1935)

Fed Reserve is not part of government. Privately owned corporation.

If we stuck to the constitution the government would print the money for free instead of paying the Fed Reserve interest on money they create out of thin air.

Andrew Jackson got rid of the money changers, it took him 8 years in office to do it. But within a century they were back in control of the printing press.

we need smaller government. http://www.downsizedc.org

Hey Chris, Ron Paul’s the only presidential candidate who wants to abolish the Fed!

Sorry, I couldn’t resist. ;)

I currently have the book on my wish list in paperbookswap. Is there any more to this interview from her? Audio recording anyplace?

I would say that they are part of the problem and my solution is to vote for Ron Paul period as a write in. The other professional politicians need ot go out the toilet drain. Yes a study of Economics will show that the Feds Res. need to go. But as we are debating all our e-mails are being monitored by Echelon and so teh more we write the bigger the list komrade for the round up. Let’s go drink more fluoridated water and become nice little sedated sheeple as the other 290 million have done!

anyone who suggests doing away with the federal reserve should offer its replacement: coining of gold coins of a specific weight (not value), the freedom to write contracts in gold (not $); restoration of private banking. It is unlikely the government will give up this power. for details see aier.org. At least they will tell you how to protect yourself.

Abolish the Federal Reserve? Are you crazy? The Fed has basically no control over all the ‘problems’ as characterized.

Sure, they help to control the flow of money, but this all has to do with -inflationary- precautions. The Federal Reserve has done some extremely wonderful things (Had an econ teacher who would’ve married Alan Greenspan had she the chance. And for good reason, he was a great Reserve Chairman). The Reserve serves as one of the -central- regulatory bodies for the banking system of the US. Abolish it and I’m sure we’d have a lot worse problems than subprime lending.

There are also the facts that the Reserve MAKES money for the government besides income taxes. How horrid is that? The Reserve is SELF-SUSTAINING, plus it helps pay our budgets. Our deficit crisis would likely be worse without the Federal Reserve regulating the amount of Dollars available out on the market.

I’d say the real problem has to do with our government’s tendency to push off all our debt into T-Bills. We’re now selling T-Bills JUST to cover the interest on expiring foreign-held T-Bills (Almost all our debt is ‘owned’ by China, Japan and a few other foreign countries. What happens if they all try to cash-out at once?). We’re going to be quite up a creek if we don’t stop trying to finance our deficits in this way and focus on positive budgets that pay down our National Debt.

I’m happy that the Federal Reserve is controlled by bankers outside of the people in office for our ‘Republic’ of a government. You should be too.

The Federal Reserve is about as Federal as Federal Express. It is but another in a long line of word games being played on the American voters. Little by little those who we have elected to protect us have sold us out. Laws which once limited ownership of the media we tossed to the wind and if the buy outs continue soon a tiny minority will own the vast majority of our media (radio, TV and print). Day by day corporations, with global interests, and foreign PACs exert increased control over our legislators. In each election cycle lobbyists decide election out comes and our votes become more insignificant. Arguably we are on the verge loosing control of the United States due to lack of interest and participation. Those determined to control work 24-7-365 and we only vote every couple of years and sadly the options are limited due to a corrupted system.

Please spread the words of wisdom.

Regards,

Tom O’Brien

There are legitimate “issues” with the Federal Reserve as an (effectively) unconstitutional fourth branch of the Federal Government, but it is sure better than allowing the bozos in Congress and the White House to control the money supply and banking system!

Before the Federal Reserve the US entirely depended on the private banking system to cope with panics, and they did a relatively poor job. In the last pre-Federal reserve panic, banker J. P. Morgan decided the nation’s fate. Would you want the bankers of today to unilaterally make US fiscal policy? Of course not; bankers are as greedy as ever. (Admittedly Ms. Fitts, a banker herself, does not agree.) Bankers are the guys whose lobbying gave us a string of outrageously costly scandals such as the savings and loan crisis of the 80s. Imagine greedhead Kenneth Keating designing a solution.

Our choices for managing fiscal policy boil down to the banks, the government, or the Federal Reserve. The last, run by economists, may not be great, but at least economists are more likely to make disinterested judgments than businessmen or politicians.

financial statements, she said, noting that it is illegal to spend money that has not been appropriated by Congress. Fitts also talked about the last housing bubble, the current crisis in the housing and mortgage markets and how it was engineered.There’s plenty more to read on this interesting topic here…

The constitution does not give Congress the specific right to create a central bank. Unless the specific power is spelled out, according to a strict interpretive philosophy, then Congress does not have it. Therefore, the Federal Reserve Act of 1913 is unconstitutional. Moreover, paper money itself is unconstitutional for the same reason. Only gold or silver coin is permitted by the constitution.

How do we fix this? It’s probably impossible by now as those who actually control the FED whos names are all secret, will not stand for this paper tower to be torn down. Any one wishing to do so or even attempting to do so would have to have a moral backbone without price. I’m not sure you can find that in our governement even though Ron Paul may be as close as possible. The FED has the power to create money out of thin air and therefore could easily drop millions in anyones pocket unnoticed.

Greenspan and other chairs are just PR men, obviously they have to be very knowledagable in order to talk the talk but they are not in control by any means.

I suggest those who think it is a sound instituion with a loyalty to the US, look at who the central bank for the central bank is and you will see that position is held by a bank in Switzerland and they are also the central bank for Japan, all European countries and many others. So, our monetary policy could very well be said to controlled by this swiss bank and you won’t find mch on it’s operation either or it’s members but lists are out there.

Below are some good links to check out and note, I don’t believe everything I read but in much of what I said, it is verifyable.. The “Federal Reserve” is not a US government entity.
http://www.populistamerica.com/how_the_federal_reserve_runs_the_us
http://www.williamgreider.com/books/secrets/
http://www.2012.com.au/Federal_Reserve.html
http://www.dewoody.net/money/whofed.html

I got cut off so, I’m trying to put some info back that was lost.
Very good info can be found here:
http://www.pushhamburger.com/fed.htm

1963
Kennedy issued Executive order #11.110 it called for the issuance of a new currency (United States Note) & (reducing the FEDs power to loan money to the U.S. at interest)

1963
President Kennedy is assassinated by Lee H. Oswald

in 1921 the stockholders of the Federal Reserve financed an organization called the “Council on Foreign Relations” (CFR). Harpers magazine called this the most powerful organization in the United States. Ninety percent of the people in the State Department and key positions in the Executive Branch are members of the CFR. The CFR publishes a magazine called “Foreign Affairs.” Read it if you want to know what is going to happen in coming years. The CFR is in favor of a New World Order.

“Allow me to control the issue and the nation’s money and I care not who makes its laws!” The above quote has long been attributed to the 18th century banker Amshell Rothschild (his blood line controls the FED). For if one unscrupulous group is allowed to print a nation’s money - it can eventually use that money to gain control of the press AND the politicians - and thus gain control of making the nation’s laws - and finally - control of the nation itself.

Ben Franklin said in his autobiography that the inability of the colonists to get the power to issue their own money permanently out of the hands of George III and the international bankers was [one of] the PRIME reason[s] for the Revolutionary War.

Thomas Jefferson stated, “If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered.”

Congressman Charles A. Lindbergh of Minnesota said: “This [Federal Reserve] Act establishes the most gigantic trust on Earth. When the President [Wilson] signs this bill, the invisible government of the Monetary Power will be legalized… the worst legislative crime of the ages, perpetuated by this banking and currency bill.”

Robert H. Hemphill (Credit Manager, Federal Reserve Bank in Atlanta): “We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It [the banking problem] is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects are remedied very soon.”

Napoleon, a sympathizer for the international bankers, turned against them in the last years of his rule. He said: “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

So how do we fix this? I have no idea. Sleep well.

The dollar had lost a lot of value since I’d gone to Europe a few years ago. And then I started hearing Ron Paul talking about the abolishing the Federal Reserve. So I did a little homework. It was enlightening. Chris Pirillo recently wrote a post “Is It Time to Abolish the Federal Reserve?”, where he cites some interesting quotes from financial experts regarding the trouble that the Federal Reserve is causing around the world. If you’ve never looked into the Federal Reserve on your own, you had better sit down Dorothy, because Kansas is

It’s good that you’re reading Chomsky! He is a thoughtful writer. But please don’t set your opinions in stone until you read Milton Friedman’s Monetary History of the United States to get a true overview of the problems and issues at stake.

The dollar had lost a lot of value since I’d gone to Europe a few years ago. And then I started hearing Ron Paul talking about the abolishing the Federal Reserve. So I did a little homework. It was enlightening. Chris Pirillo recently wrote a post “Is It Time to Abolish the Federal Reserve?”, where he cites some interesting quotes from financial experts regarding the trouble that the Federal Reserve is causing around the world. If you’ve never looked into the Federal Reserve on your own, you had better sit down Dorothy, because Kansas is

1. The Constitution grants the power to “coin money, establish the Value thereof” to the Congress not to the Federal Reserve Bank.

2. The Money created by the Federal Reserve Bank Is unconstitutional. (See the Google videos titled “Debt as Money” and Money Managers”for more information)

3. The Government should replace the FED as the supplier of both money and credit.

4. The actions of the FED have been fraudulent, therefore its Profits and holding should be forfeited as illegal gain.

5. All Government debt owed to the FED is void.

6. Debt to foreign bank associated with the FED and created through fractional lending practices are null and void.

7. Debt owed to foreign nations , businesses and individuals should be paid with Constitutional money.

8. Federal Reserve Noted held by individuals and business not owned by the FED should be replace with Constitutional money.

9. Interest on current outstanding bank loans to individuals and businesses should be paid to the US government treasury.

10. Banks should be paid bookkeeping fees for the service they render but not interest on the loans they hold.

11. Taxes and interest rates should be used to regulate the money and credit supply in the economy, and to control inflation.

12. To determine the interest and tax rate the department of, the treasury would create a division of the Currency to set those rates.

The Federal Reserve just needs to work better and smarter. All Companies or Governments need to work for the good of the planet and the people living here. These sub-prime mortgages should never be at these high rates in the first place. It all comes down to companies just wanting to make a quick buck. People need to live and have a home of thier own. These banks knew these loans could not be paid back. These interest rates are unfair even if the people had poor credit. These loans are not good for people nor the United States. Shame on you lenders.

See the last 20 mins of this video:

http://video.google.ca/videoplay?docid=-515319560256183936&hl=en

Viable and stable 2-year economic solution proposed through a monetary reform act:

1. Pay off the debt with debt-free US Notes. Issue notes like bonds which rest on the credit of the US Government.

2. Abolish Fractional Reserve Banking, as the debt is paid off, the reserve requirements of all banks and financial institutions would be raised proportionally at the same time.
Prevent the multiplication of each dollar through banking loans.

3. Repeal of the Federal Reserve Act of 1913 and National Banking act of 1864.
Return control of the monetary system to the US governemt.

4. Withdraw the U.S. from the IMF, the BIS and the World Bank.
Avoid participating in a bigger centralized bank.

Why can’t people understand the simple processes of an economy? Only bankers, politicians, and lawyers make it a complex system, and for good reason…..as we all know.
The Federal Reserve System is a scam, period! It is designed to make profits of all exchanges of monies, whether by citizens, corporations, or governments. Funny, that we never had, nor needed a Federal Income Tax until the Federal Reserve Act was underhandedly, and fraudulently pushed through Congress while 90% of Congress was out for Christmas leave.
The control, issuing, printing, coining, and the value of the United States Currency should, and always be in the hands of the Congress of the United States of America alone, period! Just as the Constitution says! It was illegal and treasonist on each person involved that allowed the bankers to take over the money system, again. Not one of you would ever allow someone else to handle your finances, or charge you for borrowing your own money, would you?
So why as a country with so many assets, do we the people allow bankers from England to control our currency in the United States of America? Many, many politicians in the past hated, and condemned the bankers practices for they only destroy for profit, and never build for prosperity, except for themselves and their Cartel. So, why do we keep such a destructive enemy of the people guarding and controlling, and profiting from our money supply?
We are all in essence cowards compared to our forefathers who stood up and kicked them out of the United States, but we just squabble over our pathetic little lives, always wanting more.
I, for myself, just want to say to our forefathers, grandparents, and all those who suffered the good fight and won against these same criminal bankers, and gave their lives for the freedoms of the American people, I am sorry, we as a country have failed, and the bankers are on their way to completing their task of owning all the land that you conquered for us years ago. I am ashamed we couldn’t keep the bankers out of American. We are all cowards when we stay silent to those who take what is rightfully ours, and do nothing but ***** about it. Someone else will do it for us, right? Wrong.

How about a National Bank as a lender of last resort?

The Constitution states that Congress is to have the power to coin money.

No where in the Constitution does it allow for them to give that power away or give power to establish a non-governmental privately for-profit central bank.

Abolish the Federal Reserve Now – Sign & Promote the Petition

Many investors and concerned citizens around the world are showing their outrage at what the Federal Reserve has done to the American economy with their easy money policies which caused the credit & real estate bubble and subsequent global financial meltdown.

Join the thousands who are signing & commenting on the Abolish the Federal Reserve Petition at http://www.petitiononline.com/fed/petition.html

I’ve read some pretty superficial statements here: Fed lender of last resort, protect from deep busts, etc. etc. First of all the Fed is lender of last resort not because they saved money working hard (like the rest of us do) but because they are involved in FRAUD. They print money out of nothing and thus water down the value of our money. This is nothing less than theft. Just because the government allows it doesn’t mean it’s right.
Second, the Federal Reserve creates bigger booms and busts. The Great Depression lasted 15 years! Any previous recessions were caused by bank runs and lasted between 1 and 4 years.
Washii, calling the Fed “wonderful” is just ridiculous. Yes, they make loans to the government with money by watering down your savings, don’t you get it? I recommend you read Murray Rothbard’s “The Case against the Fed” to understand what these criminals are up to.
I just can’t believe how some people here are so delusional and in denial.
Read your stuff people, before you come up here and write something stupid.