Posted On: Friday - August 17th 2018 7:16PM MST
In Topics:   Global Financial Stupidity  Economics  US Feral Government  Inflation
(This post is a wrap-up, and continued from the recent Peak Stupidity discussion of interest-rates and inflation as twin evils of the American financial system.)
I have Ron Paul's photo at the top of this post, just due to his being the only Federal-level politician who, not just understands, but tried to explain to Americans the source of our increasing economic woes. He was also a Constitutionalist with integrity, hence the moniker "Dr. No", as he voted against legislation way more than your average representative. Why? It was because almost all of it's been unconstitutional over the years per Amendment X.
Back to the economics, Dr. Paul made big efforts to bring the evils of central banking, unsound money, inflation, and artificial interest rates into the public light. It wasn't awful successful due to Americans either not understanding how deep the roots of the problems go, or thinking that everything is still hunky-dory, what with the DOW in the middle 20 thousands lately.
The interest-rate post brought up the Federal Reserve Bank, the FED, created in secret by a cabal of Big-Biz guys just before Christmas Eve on Jekyll Island, Georgia 105 years back. I've read The Creature from Jekyll Island a few years back, so though I can't give out details, the general idea of what happened is in my head. These guys came from around the East mostly, NYC in particular, along with the one Senator or Congressman that they pressed into service for their cause, by train to ostensibly "do some hunting" on this Georgia barrier island. They got a law passed while most Americans, including in Washington, FS were distracted by Christmas festivities, and created the now century-old Central Bank that American politicians in the 19th century had done their damndest to prevent. President Andrew Jackson, who is very ironically on the front of the 20 dollar "Federal Reserve Note" (get it?) upon his dying day felt that keeping a Central Bank from being created was his biggest accomplishment. "I killed the bank!", he said. That was the early/middle of the 19th century. We've suffered through 87% of the 20th, and now 18% of the 21st, with this Central Bank.
This bank is in private hands, no matter what the name says. It has the ability to create money, loan it out in various ways at various rates to try to "control the economy". The distortion in the markets for money, as discussed in the previous posts, are the results of having "The FED", rather than the US Treasury minting only silver/gold money, per US Constitution. OK, I know, you can't carry all that money around, blah, blah. Sure, there were paper notes long ago, but these could be created by independent private banks whose customers understood that they could redeem them for real money, aka gold and sliver. With the FED in charge of all big-money matters, private banks can only work with the system created by it. When the FED loans out money at 1.5%, and the local bank can lend it back out at 4.5% for a mortgage, you'd better believe they're gonna work with the FED.
(to be continued very shortly in a 2nd post - the entire thing was just a bit too long - stand by...)