Posts tagged monetary policy
By Ron Paul
Federal Reserve Steals From the Poor and Gives to the Rich
Last Thursday the Senate Banking Committee held hearings on Janet Yellen’s nomination as Federal Reserve Board Chairman. As expected, Ms. Yellen indicated that she would continue the Fed’s “quantitative easing” (QE) polices, despite QE’s failure to improve the economy. Coincidentally, two days before the Yellen hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE “the greatest backdoor Wall Street bailout of all time.”
As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market!
It would be a mistake to think that QE is the first time the Fed’s policies have benefited the well-to-do at the expense of the average American. The Fed’s polices have always benefited crony capitalists and big spending politicians at the expense of the average American.
By manipulating the money supply and the interest rate, Federal Reserve polices create inflation and thereby erode the value of the currency. Since the Federal Reserve opened its doors one hundred years ago, the dollar has lost over 95 percent of its purchasing power —that’s right, today you need $23.70 to buy what one dollar bought in 1913!
As pointed out by the economists of the Austrian School, the creation of new money does not impact everyone equally. The well-connected benefit from inflation, as they receive the newly-created money first, before general price increases have spread through the economy. It is obvious, then, that middle- and working-class Americans are hardest hit by the rising level of prices.
Congress also benefits from the devaluation of the currency, as it allows them to increase welfare- and warfare-spending without directly taxing the people. Instead, the increase is only felt via the hidden “inflation tax.” I have often said that the inflation tax is one of the worst taxes because it is hidden and because it is regressive. Of course, there is a limit to how long the Fed can facilitate big government spending without causing an economic crisis.
Far from promoting a sound economy for all, the Federal Reserve is the main cause of the boom-and-bust economy, as well as the leading facilitator of big government and crony capitalism. Fortunately, in recent years more Americans have become aware of how the Fed is impacting their lives. These Americans have joined efforts to educate their fellow citizens on the dangers of the Federal Reserve and have joined efforts to bring transparency to the Federal Reserve by passing the Audit the Fed bill.
Auditing the Fed is an excellent first step toward restoring a monetary policy that works for the benefit of the American people, not the special interests. Another important step is to repeal legal tender laws that restrict the ability of the people to use the currency of their choice. This would allow Americans to protect themselves from the effects of the Fed’s polices. Auditing and ending the Fed, and allowing Americans to use the currency of their choice, must be a priority for anyone serious about restoring peace, prosperity, and liberty.
A simplified explanation of the US monetary system
A good review and explanation of the monetary system, by way of video, that should be easy to understand and be shared. I first saw this posted by Nick on againstcronycapitalism.org and finally had a chance to watch the video. Why all the “End the Fed” rallies?, this may explain. The video below was published by whygoldandsilver.
The best, simplest, explanation of the US monetary system (debt, currency, money, taxes, what’s really going on) that I’ve ever seen. An important video.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money. Harry Reid is right. Those hard money people and kids at the Ron Paul speeches are nothing but a bunch of anarchists!”
But the main reason many people feel this way is because they fundamentally don’t understand what the “End the Fed” people are really saying and why they are saying it.
Monetary policy, QE, bond buying, bond issuance, taxes, the Treasury, fractional reserve banking, interest rates, the money supply, all seem maddeningly opaque. Most people just give up. If they try to understand what’s going on at all. And this is understandable. Monetary policy is a challenging subject. But it is not cosmological physics.
If only someone were to explain things in an understandable, straightforward way.
Well you’re in luck.
The below video does an excellent job of explaining the bulk of American monetary policy in simple terms. The graphics and language used are clear and easily understood. Jargon is kept to a minimum.
Invest 1/2 hour in the video. You will see how and why the Federal Reserve is at the very heart of our current crony capitalist economy. It will be well worth your time.
Peter Schiff Exposes Media Lies About Janet Yellen
This is a must-see video. Watch through the last 10 minutes where Schiff shows clips from 2006 where he was ridiculed for being 100% correct.
Published by Peter Schiff
The Schiff Report (10/18/2013)
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By Tyler Durden
A Warning About The Dangers Of Central Planning And Moral Hazard By… Ben Bernanke
… Well, not today’s Ben Bernanke of course – a far more honest version of the current Fed Chairman, one speaking before the New York Chapter of the National Association for Business Economics, on October 15, 2002.
I worry about the effects on the long-run stability and efficiency of our financial system if the Fed attempts to substitute its judgments for those of the market.
So do we Ben.
But wait, there’s more – here is the Chairman warning about not only moral hazard but also real estate bubbles:
[A] possible indicator of bubbles cited by some authors is the rapid growth of credit, particularly bank credit. Some of the observed correlation may reflect simply the tendency of both credit and asset prices to rise during economic booms. However, to the extent that credit expansion is indicative of bubbles, I think that empirical linkage points to a better policy approach than attempts at bubble-popping by the central bank. During recent decades, unsustainable increases in asset prices have been associated on a number of occasions with botched financial liberalization, in both emerging-market and industrialized countries. The typical pattern is that lending institutions are given substantially expanded powers that are not matched by a commensurate increase in regulatory supervision (think of the savings and loans in the United States in the 1980s). A situation develops in which institutions can directly or indirectly take speculative positions using funds protected by the deposit insurance safety net–the classic “heads I win, tails you lose” situation. When this moral hazard is present, credit flows rapidly into inelastically supplied assets, such as real estate.
Image credit: http://www.zerohedge.com
We’re Going Into the Greatest Depression: “They Will Not Be Able To Pull Off the Stimulus Game Again”1
Posted by Judy Morris
We’re Going Into the Greatest Depression: “They Will Not Be Able To Pull Off the Stimulus Game Again”
Look around and you can’t miss it.
The world is on the brink… politically, economically, financially, monetarily, and militarily.
Events are accelerating. Over the last decade trend forecaster Gerald Celente has been blaring the alarms.
If you’ve been paying attention, then you’ve heard them. You know we’re going under.
And this time they’re not going to be able to stop it.
It will be worse than the panic of ’08. It will be deeper. It will be more painful and there’s a reason why… because they will not be able to pull off the stimulus game again.
Everybody got hip to it and it didn’t work. You read even the Financial times, the major media, CNBC, Bloomberg… everyone will now admit that the stimulus only bought borrowed time. So the stimulus game doesn’t work anymore, and the governments are so in debt they can’t have the fiscal policy. So you have no monetary policy and you have no fiscal policy to stimulate the economy.
We’re going into the Greatest Depression.
But they will try to boost it some way. And that’s when I believe gold and silver prices will again skyrocket. They can stay low, I believe, for another several months… even a year. But I don’t see them staying down forever.
Read the rest at SHTFplan.com, here.
Spotted on: http://www.dailypaul.com
H/T to my friend Judy Morris
Ben Swann’s Liberty is Rising Truth in Media Project
I want to begin by saying thank you for signing up for this email list and for your incredible support of my work with Reality Check and Full Disclosure over the past 2 years.
As promised, you are now the first to hear in detail about my- actually our- next step. Beginning next week on Monday, June 10, we will officially launch the “Liberty Is Rising Truth in Media Project” on Kickstarter. As I have told you, this is the most involved and meaningful project I have ever been involved in and it is not something I can do on my own.
The “Liberty is Rising Truth in Media Project” is a 3 step process:
Inform, Engage, Activate:
Step 1: INFORM
The first step of this project and the primary use of Kickstarter is to create high-end, high-quality Reality Check style segments that can be presented to the public via streaming content sites such as Netflix, Hulu, Spotify, or devices such as Roku and BenSwann.com. Our goal is to produce 100 high quality five to six minute shows and by launching this project independently, the restrictions on subject matter by corporate bosses will not be an issue.
Why do the videos need to be so high quality? Simple, we need to spread this message as far out as we can. Like it or not, we live in a very media-savvy culture and if the public at large is to take this kind of journalism seriously, they need to be able to hear and see it in a way that is deemed credible. You can watch network news programming all day and never hear anything of substance but it sure looks pretty. If we are to educate and inform the public on issues of war, the drug war, monetary policy, drone strikes, the NDAA, CAFR, crony capitalism, etc… it MUST be done in the style and format generations of Americans have been trained to accept as “professional”.
The films will be distributed via multiple platforms. First, we continue to share new content virally via Facebook, YouTube, Twitter, BenSwann.com, and continue to allow alternative media blog sites to use our films without charge and embed them, as long as they are shown in their entirety. This is important because we want as many people exposed to our journalism as possible.
We will be rolling out a highly interactive, informative website that will include all Full Disclosure episodes, a forum, Ben Swann podcasts, and a mobile app.
Also, as I mentioned, we are going to attempt to spread these films into new arenas such as streaming sites like Netflix, Hulu, and Spotify. Again, the goal is to engage the largest audience possible.
Step 2: ENGAGE
Each of us must impact our own circle of influence.
We are currently building out a multi-faceted platform of engagement where you and I will work together to take single issues and impact public opinion. This platform will contain resources like stats, infographics, archived articles, and other educational materials that will be available to download or share.
This platform will work directly with college student groups like Young Americans for Liberty, Young Republicans, Young Democrats and politically independent groups, giving students hard facts and data to share with peers and teaching them how to hold information sessions on campus.
We will work with journalists across the country challenging them to engage in critical thinking and questioning of local, state and national leaders on issues of importance. We’ll equip them on how to challenge the status quo in their newsrooms and move beyond reading press releases.
Faith Based Communities:
We will engage faith-based communities (Christian, Jewish, Buddhist, Muslim, etc) and challenge the acceptance of government control over their religious activities.
We will engage local and state lawmakers and challenge the over-reach, over taxation, and policing for profit that is taking place in every city and town in America.
We will engage those in the Tea Party movement who entered the movement for the right reasons, to protest over taxation and government control.
We will engage those in the Occupy movement who rightly protested the consolidation of wealth among a small group of people and who have created a crony capitalist system (that isn’t capitalism at all).
The goal is to help Americans escape the Left/Right paradigm of arguing with each other while politicians and big money run the nation and our lives. We desire to create unity among all these groups in the areas where we can agree. That happens when we are defined not by who we stand against, but what we stand for. It is not about Left vs. Right or Republican vs. Democrat… but Liberty vs. Tyranny.
You and I will go through this process together. Beyond just sharing the content, you will be instrumental to the gathering of information and the actual creation of that content. With your engagement we will be able to create public awareness and social willingness to drive change.
Step 3: ACTIVATE
The best part of this step is that the work you and I will have already done is key. Having forced important issues into the forefront of public awareness we will have already changed minds and that will allow action to be taken.
Through strategic partnerships with established political and student groups as well as individual experts in the fields or medicine, education, economics, security, drug policy etc. we will begin to crowd-source “change strategies”.
The end result of these strategies will include legal and legislative process for changing U.S. policy overseas and here at home. We will challenge lawmakers who continue to engage in hypocritical behavior and are unwilling to stand up for rule of law. As a long-term goal, we will eventually work with lawmakers to draft legislation to correct the nation’s trajectory. Dr. Ron Paul borrowed the words of Victor Hugo when he declared in 2008, “An idea whose time has come cannot be stopped by any army or any government.”
Ron Paul Said It Best:
I recently had the chance to interview Dr. Paul and we talked in depth about the changing media landscape. How has media changed for a man who has spent his entire life attempting to change the system?
“When I first started in politics in the 70′s, we basically had three major networks and they were very, very close together on philosophy…..But now the options are great…..Now the information is going out differently. It’s going out on handheld devices and computers and telephones and they can turn you on and off when they want. They have so many more choices.”
Dr. Paul then added:
I’m optimistic that things are going to do well and I’m optimistic because you’re (Ben Swann) involved in this fight with us.”
Again, I want to thank you for your support so far. As you can see this next step is a very ambitious project. There is risk here but I believe that every great movement in history has been accompanied by great challenge and risk.
Between now and June 10th, I need your help.
1. Please go sign up for this Facebook event for the project:
2. Please forward this email on to friends and family who you believe might want to be a part of this project.
3. Please share the new cover photo featured on my Facebook pages that can be found here.
There has never been a moment like this before in world history where a society has had this kind of collision of technology and information. This is our moment. I hope that next Monday, you will commit to helping me to shake the media landscape in America! I leave you with these words from a great patriot Samuel Adams who once proclaimed,
“It does not take a majority to prevail… but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men.” - Samuel Adams
Posted by SchiffReport
Peter Schiff on Fox Business (2/18/13)
Most people who pay attention to government stats are now wise to the fact that labor force data is just as important as the employment data in determining the unemployment rate. As pointed out by Santelli today, a few hundred thousand people were disappeared from the labor force to get the unemployment rate down below eight percent.
Even Reuters was forced to admit that the labor force decline was the real issue here. Although backers of the administration, predictably, are claiming that there’s momentum in the economy.
But just to get some perspective, let’s look at the government’s numbers on total payroll employment. The graph shows that with November’s numbers, employment is now back up 2006 levels. That is, we’re down 3.1 million jobs from the peak. Private-sector employment is even worse and is still at 2005 levels and is down 3.9 million from the peak. True, some people are leaving the work force as they retire, which means we now have more people on the dole. But even with retirees, we’re obviously not adding jobs for those entry-level people, which one can also guess from the massive employment among teenagers. One could also note that total private employment is barely above what it was back in 2000.
Robert Wenzel thinks the relatively positive numbers (in a short term analysis) reflect ongoing Fed pumping, and I agree with him, but even with QE3, we’re still looking at four to seven million unemployed people, and this also ignores the underemployed and those forced into part-time employment.
Published on Feb 10, 2012 by FightForLibertyZX
An amazing book featuring 50 topics and what Liberty is all about. Please Support Ron Paul for President of the United States. I’m going to put bookmarks and stuff eventually. This Audio Book is almost 9 hours long.
—– Chapters ———
Intro – 00:38
1 Abortion – 13:54
2 Assassination – 28:57
3 Austrian Economics – 38:04
4 Bipartisanship – 44:26
5 Business Cycle – 49:39
6 Campaign Fiance – 56:07
7 Capital Punishment – 1:01:19
8 Central Intellegence Agency – 01:09:20
9 Civil Disobedience – 01:20:35
10 Conscription – 01:30:41
11 Demagogues – 01:39:17
12 Democracy – 01:50:25
13 Descrimination – 02:07:24
14 Education – 02:16:03
15 Empire – 02:24:26
16 Envy – 02:56:31
17 Evolution vs. Creationism – 03:00:45
18 Executive Power – 03:07:18
19 Foreign Aid – 03:25:04
20 Four Freedoms – 03:33:25
21 Global Warming – 03:51:29
22 Gun Control – 04:11:09
23 Hate Crimes – 04:15:12
24 Immigration – 04:20:06
25 Insurance – 04:36:57
26 Keynesianism – 04:46:39
27 Lobbying – 05:06:00
28 Marriage – 05:13:37
29 Medical Care – 05:19:38
30 Monetary Policy – 05:39:21
31 Moral Hazard – 05:46:44
32 Morality in Government – 05:55:02
33 Noble Lie – 05:58:58
34 Patriotism – 06:07:53
35 Political Correctness – 06:14:51
36 Prohibition – 06:19:22
37 Public Land – 06:28:35
38 Racism – 06:36:56
39 Religion and Liberty – 06:45:19
40 Security – 07:03:38
41 Slavery – 07:14:47
42 States’ Rights – 07:23:14
43 Statistics – 07:34:03
44 Surveilance – 07:39:48
45 Taxes – 07:43:37
46 Terrorism – 07:51:36
47 Torture – 07:58:22
48 Trade Policies – 08:06:55
49 Unions – 08:14:46
50 Zionism – 08:35:23
Afterward – 08:49:25
Appendix – 08:53:22
For those wanting to see the rally in it’s entirety follow the C-Span links below.
- Ron Paul Rally in Tampa, FL – Part 1
- Ron Paul Rally – Part 2
- Campaign Rally with Ron Paul & Sen. Rand Paul – Part 3