Posts tagged regulations
By Ron Paul
After 100 Years Of Failure, It’s Time To End The Fed!
A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding. Resulting from secret negotiations between bankers and politicians at Jekyll Island, the Fed’s creation established a banking cartel and a board of government overseers that has grown ever stronger through the years. One would think this anniversary would elicit some sort of public recognition of the Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning. But just like the Fed’s creation, its 100th anniversary may come and go with only a few passing mentions.
Like many other horrible and unconstitutional pieces of legislation, the bill which created the Fed, the Federal Reserve Act, was passed under great pressure on December 23, 1913, in the waning moments before Congress recessed for Christmas with many Members already absent from those final votes. This underhanded method of pressuring Congress with such a deadline to pass the Federal Reserve Act would provide a foreshadowing of the Fed’s insidious effects on the US economy—with actions performed without transparency.
Ostensibly formed with the goal of preventing financial crises such as the Panic of 1907, the Fed has become increasingly powerful over the years. Rather than preventing financial crises, however, the Fed has constantly caused new ones. Barely a few years after its inception, the Fed’s inflationary monetary policy to help fund World War I led to the Depression of 1920. After the economy bounced back from that episode, a further injection of easy money and credit by the Fed led to the Roaring Twenties and to the Great Depression, the worst economic crisis in American history.
But even though the Fed continued to make the same mistakes over and over again, no one in Washington ever questioned the wisdom of having a central bank. Instead, after each episode the Fed was given more and more power over the economy. Even though the Fed had brought about the stagflation of the 1970s, Congress decided to formally task the Federal Reserve in 1978 with maintaining full employment and stable prices, combined with constantly adding horrendously harmful regulations. Talk about putting the inmates in charge of the asylum!
Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.
Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed.
20 years ago NAFTA passed, This is what one of the greatest free market economists ever had to say about it at the time.0
20 years ago NAFTA passed, This is what one of the greatest free market economists ever had to say about it at the time.
This essay by Murray Rothbard holds particular relevance as the Trans Pacific Partnership continues to be negotiated in secret.
Yet Nafta is more than just a big business trade deal. It is part of a very long campaign to integrate and cartelize government in order to entrench the interventionist mixed economy. In Europe, the campaign culminated in the Maastricht Treaty, the attempt to impose a single currency and central bank on Europe and force its relatively free economies to rachet up their regulatory and welfare states.
In the United States, this has taken the form of transferring legislative and judicial authority away from the states and localities to the executive branch of the federal government. Nafta negotiations have pushed the envelope by centralizing government power continent-wide, thus further diminishing the ability of taxpayers to hinder the actions of their rulers.
Ideas Created The Federal Reserve…Ideas Can Get Rid of It
The Washington Post‘s Wonkblog, which can be counted on to defend every government mischief imaginable, reports on an “all-star economic conference” that took place in DC. Whenever you hear of an “economic conference” in DC, it can only mean trouble. The real economic conferences take place in Auburn, Alabama.
In the DC conference, the King of the “all-stars” — Fed Chairman Bernanke — graced the stage, and would provide a history lesson for all of the attendees. Bernanke described the similarities between the Panic of 1907, and the Panic of 2008.
The 1907 panic was created by fractional-reserve banking. When the bank runs got underway, and panic set in amongst the public, JP Morgan orchestrated the bailouts and the “liquidity” to “save the system”. Remember this was pre-Fed.
The 2008 panic was also created by the fractional-reserve banking system — along with — the central banking counterfeiter that now exists. The bailouts this time around were provided by “The Hero”:
Before we go any further, a few things have to be understood. First, both in 1907 and 2008 the banking systems were dishonest and fraudulent. The situation in 1907 is actually preferable to today because, back then, gold still provided a check on the bankers. In 2008 (and today) there are no checks. It’s basically unlimited power for the bankers to finance whatever they want (until economic law shuts them down eventually).
Image credit: http://www.economicpolicyjournal.com
Central Bank Monetary Cures Cannot Work
Published by Peter Schiff
Peter Schiff on CNBC Europe (11/7/2013)
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Whistleblower Explains How Banks Gamble With Customer Funds
Cathy Scharf, former compliance officer, spoke at the Certified Anti-Money Laundering Specialists (CAMS) conference in Nevada; explaining how SunFirst Bank (SFB), a Utah bank, she worked for was “illegally processed at least $200 million for the offshore gambling sites PokerStars and Full Tilt Poker.”
Scharf said that executives at the bank supported the activity because it kept their bank from going under.
The bank then hired “criminal lawyers to threaten” her to arrest if she revealed the scheme.
SFB was also entangled in offshore money laundering connected with gambling operations that explained why the bank was focused on acquiring more customer deposits.
Scharf explained: “Whenever a gambler transferred funds to one of the offshore card sites, the money went through the small Utah bank. The bank was making $400,000 a month in transaction fees, violating a 2006 law that makes it a federal crime to knowingly accept payment for illegal internet gambling. They wanted to keep making money so they could bring the bank back. My frame of mind was just shoot me and put me out of my misery.”
In April, former House Representative Ron Paul stated that the depositor theft in Cyprus exposed how “these banks then took their bad investments to the government, demanding a bailout from an already beleaguered Cypriot treasury. The government of Cyprus then turned to the European Union (EU) for a bailout.”
Paul went on to state: “The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one’s money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?”
David Stockman, former director of the Office of Management and Budget (OMB) under the Reagan administration, said: “As a result of being rescued and having the cleansing liquidation of rotten balance sheets stopped, within a few weeks and certainly months they were back to the same old games . . .”
Earlier this year, it was revealed that Wells Fargo was involved in loan manipulation to the tune of $176 billion in cooked books. Deposit monies climbed for Bank of America (BoA) to $221 billion, while JP Morgan & Chase Co (JPM) reported $460 billion in excess of depositor funds.
In 2012, the biggest banks in the US were given advisement by US regulators that they must make plans to stave off a complete financial collapse without relying on the US government.
BoA, Goldman Sachs and other technocrats have secretly crafted worst-case scenarios in which they can continue to thrive during a full-blown domestic monetary crisis.
The Federal Reserve Bank (FRB) and the US Office of the Comptroller of the Currency (OCC) named Citigroup Inc., Morgan Stanley and JPM, as well as others, to devise “recovery plans” in 2010. Banks were directed to have schemes to remain afloat by selling off assets, finding alternative sources of funding, reducing risky measures that make a quick buck. These strategies were to be perfected with “no assumption of extraordinary support from the public sector.”
Resolution plans , required under the 2010 Dodd-Frank financial reform law describe how to liquidate banking assets without causing further damage to a failing financial system. By selling “non-core assets” without upsetting shareholders while protecting the monetary system, taxpayers and creditors is the work of the mega-banks who have contributed solely to the destruction of the global financial markets.
The OCC constantly monitors the largest banks and evaluates their resolution plans to provide assurance to the US government that financial instability will not destroy the banking industry in America.
The details of the resolution plans are considered confidential. While the mega-banks wait to see if another round of banker bail-outs will alleviate the pressure of the international interests as BoA and Citigroup begin to act as if they are implementing their resolution plans covertly.
BoA has sold off portions of their domestic assets to secure capitol while Citigroup has followed suit.
Citigroup, in their resolution plan decided by management meetings by regulators, will “make appropriate assumptions as to the valuations of assets and off-balance sheet positions.”
Image credit: http://www.occupycorporatism.com
About the author:
By adhering to initiatives provided by the Financial Stability Board (FSB), these mega-banks will, when they enact their resolution plans, coordinate with international banking institutions and regulators rather than simply implode.
Written by RPI Staff
Ron Paul With Charlie Rose: ‘The Meaning of Non-Interventionism’
Do not miss Ron Paul’s extensive interview on the Charlie Rose show. He gives the best yet definition of his personal philosophy, called “non-interventionism,” which also is the philosophical framework of his Ron Paul Institute for Peace and Prosperity. He also offers important insights on Syria and his amazing new education freedom book.
Video capture added to RPI original post.
During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Federal Reserve1
During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Federal Reserve
How would America ever survive without the central planners in the Obama administration and at the Federal Reserve? What in the world would we do if there was no income tax and no IRS? Could the U.S. economy possibly keep from collapsing under such circumstances? The mainstream media would have us believe that unless we have someone “to pull the levers” our economy would descend into utter chaos, but the truth is that the best period of economic growth in U.S. history occurred during a time when there was no income tax and no Federal Reserve. Between the Civil War and 1913, the U.S. economy experienced absolutely explosive growth. The free market system thrived and the rest of the world looked at us with envy. The federal government was very limited in size, there was no income tax for most of that time and there was no central bank. To many Americans, it would be absolutely unthinkable to have such a society today, but it actually worked very, very well. Without the inventions and innovations that came out of that period, the world would be a far different place today.
It is amazing what can happen when the government just gets out of the way. Check out all of the wonderful things that Wikipedia says happened for the U.S. economy during those years…
The rapid economic development following the Civil War laid the groundwork for the modern U.S. industrial economy. By 1890, the USA leaped ahead of Britain for first place in manufacturing output.
An explosion of new discoveries and inventions took place, a process called the “Second Industrial Revolution.” Railroads greatly expanded the mileage and built stronger tracks and bridges that handled heavier cars and locomotives, carrying far more goods and people at lower rates. Refrigeration railroad cars came into use. The telephone, phonograph, typewriter and electric light were invented. By the dawn of the 20th century, cars had begun to replace horse-drawn carriages.
Parallel to these achievements was the development of the nation’s industrial infrastructure. Coal was found in abundance in the Appalachian Mountains from Pennsylvania south to Kentucky. Oil was discovered in western Pennsylvania; it was mainly used for lubricants and for kerosene for lamps. Large iron ore mines opened in the Lake Superior region of the upper Midwest. Steel mills thrived in places where these coal and iron ore could be brought together to produce steel. Large copper and silver mines opened, followed by lead mines and cement factories.
In 1913 Henry Ford introduced the assembly line, a step in the process that became known as mass-production.
When hard working, industrious people are given freedom to pursue their dreams, great things tend to happen. The truth is that we were all designed to create, to invent, to build, and to trade with one another. We all have something that we can contribute to society, and when families are strong and the invisible hand of the free market is allowed to work, societies tend to prosper.
It is not a coincidence that the greatest period of economic growth in U.S. history was between the Civil War and 1913. The following information comes from Wikipedia…
The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873. The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.
Wouldn’t you like U.S. GDP to double over the course of a decade now?
So why don’t we go back to a system like that?
In 1913, the Federal Reserve and a permanent national income tax were introduced. Today, the unelected central planners at the Federal Reserve totally run our financial system and the U.S. tax code is about 13 miles long. The value of our currency has declined by more than 96 percent since 1913, and the size of our national debt has gotten more than 5000 times larger.
Meanwhile, control freak bureaucrats seemingly run everything. Almost every business decision is heavily influenced either by taxes or by the millions of laws, rules and regulations that are sucking the life out of our economic system.
My favorite example of how suffocating red tape in America has become is the magician out in Missouri that was forced by the Obama administration to submit a 32 page “disaster plan” for the rabbit that he uses during his magic shows for kids.
It is no wonder why we don’t have any economic growth. The central planners in the federal government are killing our economy.
And the central planners over at the Federal Reserve are killing our financial system. In school we are taught that the Fed was created to bring stability to our financial system, but the truth is that they have been responsible for financial bubble after financial bubble, and now Federal Reserve Chairman Ben Bernanke has created the largest bond bubble in the history of the world. When that thing bursts, and it will, we are going to see financial carnage on an unprecedented scale.
Image credit: http://theeconomiccollapseblog.com
Posted by Robert Wenzel
The Sad Unemployment Picture Now Compared to the 1982 Recession Recovery
The chart below via John Taylor shows the change in the employment-to-population ratio—the percentage of working age population that is actually working–now compared with the end of the 1982 recession. The current increase in jobs is not enough to employ a greater fraction of the working population. Blame it on growing regulations businesses are forced to deal with, minimum wage laws and the confusion and unknown costs associated with Obamacare.
Posted by Judy Morris
USDA Demands Magician Develop “Disaster Plan” For His Rabbit
Image source: http://sayanythingblog.com
Remember that study indicating that the expansion of federal regulation has made America 72% poorer? Here’s another data point supporting that conclusion.
Marty Mahane is a magician who works in Missouri. Like a lot of magicians, he has a rabbit that is a part of his act. But lately, his rabbit has been causing him a lot of headaches with the federal government.
According to the USDA, Mahane must develop a disaster plan for his rabbit.
Read the rest at SayAnythingBlog.com, here.
By Lauren McCauley
Landslide Vote for GMO Labeling in Maine Legislature
Representative: “The people want to know what’s in their food, and they want to be able to make a choice that’s right.”
In a landslide 141-4 vote, the Maine House of Representatives voted Tuesday to advance bill LD 718, which would require special labeling for seeds and foods made with genetically modified (GMO) ingredients.
The Bangor Daily News reports that during debate there was “little disagreement” about the importance of GMO labeling.
“The consumers have a right to know,” said Rep. Craig Hickman, D-Winthrop. “The people want to know what’s in their food, and they want to be able to make a choice that’s right.”
As supporters of the bill celebrate, they are also braced for what they say is an inevitable battle between the wishes of the people and Ag Giant Monsanto, who has already threatened to sue states that pass similar labeling laws.
“You’re challenging a biotech industry that’s operated on the basis of throwing their weight around,” said Rep. Lance Harvell (R-Farmington), who sponsored the bill. “Somebody once said that Monsanto isn’t a seed company, it’s a law firm that makes seeds.”
Jim Gerritsen, president of the Organic Seed Growers and Trade Association (OSGATA), believes the state is in “excellent position” to combat any legal challenges. What they are promoting is “factual, uncontroversial information which is valid for state interest.”
He added that Mainers will “not be bullied” by out-of-state biotech firms, saying, “It’s an outrageous abuse of the democratic process. For out-of-state trade groups to threaten a state acting in the best interest of its people, that is abuse.”
The measure now advances to the state Senate, however, should it become law, the regulations will not take effect until five other contiguous states (or one state with a population of over 20 million people) enact similar labeling laws.
The New England state is one of a coalition of thirty-seven states currently mobilizing for GMO labeling. Of these, twenty now have legislation slated for introduction this year. Last week, Connecticut became the first state to require GMO labeling.