The Federal Reserve slashes interest rate to 0, throws gas on the fire
Dec 18, 2008 Ron Paul, economy, news, politics
Ben Bernanke
On December 16, 2008, the Federal Reserve cut its key interest rate to a range between 0 and .25%, the lowest since 1954.
Why does the Federal Reserve, a group of wealthy private bankers who were unconstitutionally given a monopoly on the creation of money in the United States, think it can solve this economic crisis by doing the very thing it did to create the problem in the first place? By lowering interest rates, the Federal Reserve is attempting to inject liquidity into the market by making lending more attractive to member banks, and their member banks, all the way down to the consumer trying to buy a car or house he/she cannot afford. As if the massive debt realized by this process is not bad enough, the money that the Fed issues is printed out of thin air, and thus debases the dollar.
I suppose there is some good news: the Federal Reserve cannot lower interest rates any more! When this last ditch effort to mend the economy fails, which it is bound to do, everyone will (finally) understand that the Federal Reserve cannot simply print wealth. Everyone will understand that deficit financing and monetization of debt can only last so long. Everyone will understand what happens when an organization like the Federal Reserve is allowed to operate with no oversight, regulation, or transparency to the people of the United States of America. Everyone will finally understand that the unlimited production of fiat currency is a system that is inherently flawed and destined for failure.
Everyone will realize that Ron Paul, Peter Schiff, and so many others were right after all.
Tags: ben bernanke, economy, Federal Reserve, inflation, Peter Schiff, Ron Paul
A Lesson on Inflation from Duck Tales
Oct 13, 2008 economy
How better to outline the negative effects of inflation, or creation of new money, than a cartoon?
Tags: Federal Reserve, inflation
House Democrats defended Fannie Mae and Freddie Mac before current meltdown, but who is really at fault?
This video shows beyond a shadow of a doubt that Democrats covered up the looming problem with Fannie Mae and Freddie Mac.
Despite Republicans wanting more regulation for the two companies (which somehow dodged Sarbanes Oxley), which seems great in light of the current crisis, who is really at fault in this whole mess? The answer lies with the root of the credit problem, the Federal Reserve Bank. The Federal Reserve, which is not federal at all, but rather a privately owned and controlled bank owned by member banks, makes loans to the federal government and banks who are members of the Federal Reserve System. This system of monetization of debt in effect attempts to create wealth out of thin air, which is an impossibility that will ultimately result in a devastating collapse. When the Fed monetizes debt and prints money out of thin air to give out as loans, not only does this increase the money supply which causes inflation, it encourages malinvestment because credit is too easy to get; therefore the market does not operate in its most efficient manner. Market determined interest rates and a gold and silver backed currency would fix this problem permanently and stop the unrelenting madness of the fed and the boom/bust cycle they create.
Tags: fannie mae, Federal Reserve, freddie mac
McBama the great deceiver
Sep 2, 2008 politics
Yes, Barack Obama and John McCain are essentially the same person. Sure, they differ on issues such as health care, the war in Iraq, and other partisan politics - but how are they similar? McCain and Obama are both pro-immigration. McCain and Obama both want to let the federal reserve system continue to destroy the dollar. Both are war mongers. Obama has advocated invading Pakistan and McCain, as everyone knows, wouldn’t mind our troops being put in harms way in Iraq for another century. Former Secretary of State Madeleine Albright, who thinks that 500,000 deaths of Iraqi children is “acceptable”, is on Obama’s foreign policy advisors list. Neither Obama nor McCain would take a nuclear first-strike against Iran off the table in favor of diplomatic negotiations. Obama and McCain both voted for the Patriot Act, which allows for needless invasion of privacy and erodes personal liberty in the name of a false sense of security. Both Obama and McCain are members of the Council on Foreign Relations. Obama and McCain are both in bed with and corrupted by special interests and lobbyists, despite both adamantly denying such. McCain and Obama both support the majority of, if not every word of, the ten planks of the communist manifesto. McCain and Obama are two sides of the same coin, two shills for global government, masquerading as opposing candidates and campaigning on wedge issues designed to avert attention away from the issues that will determine the direction of the country. They both talk out of both sides of their mouths. Don’t be fooled! Read, understand, and defend the Constitution! Please check out Chuck Baldwin for president 2008!
Tags: Albright, CFR, communist manifesto, constitution, Council on Foreign Relations, Federal Reserve, Iran, lobbyists, Madeleine Albright, McCain, nuclear first strike, Obama, Pakistan, warmonger