11 Reasons Why The Federal Reserve Must Go
Johnny Silver Bear
Millions of Americans are waking up to the fact that the Federal Reserve is bad, but very few of them can coherently explain why this is true. For decades, an unelected, privately-owned central bank has controlled America’s currency, run our economy and has driven the U.S. government to the brink of bankruptcy. It operates in great secrecy, it has never been subjected to a comprehensive audit and yet the actions it takes have an impact on every single American. It is an institution designed to drain wealth from the U.S. government (and ultimately from the American people) and transfer it to the ultra-wealthy.
- Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone?
- Have you ever wondered why a sovereign nation such as the United States does not even issue its own currency?
- Have you ever wondered why we allow a group of unelected private bankers to run our economy?
The following are 11 reasons why the Federal Reserve is not good for the United States….
1 – The Federal Reserve was created as a way to enslave the U.S. government with debt.
The truth is that the U.S. government only goes into debt if it chooses to. Theoretically, one day that U.S. government could simply decide to print as many U.S. dollars as it wants and pay off all government debts. But under the current system that is not allowed.
Under the current regime, whenever the U.S. government wants more currency to be created it has to go into more debt…”It Is Now Mathematically Impossible To Pay Off The U.S. National Debt”
2 – The Federal Reserve creates money out of this air.
3- The huge predator megabanks that now dominate the U.S. banking system use the Federal Reserve as a tool to make money.
One of the ways they do this is called the U.S. Treasury carry trade. What happens is that the Federal Reserve lends huge amounts of money to the megabanks for next to nothing, and then these megabanks use all that cash to buy U.S. government debt. This little “trick” helped enable four of the biggest U.S. banks (Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup) to have a “perfect quarter” with zero days of trading losses during the first quarter of 2010. Wouldn’t you like to have a perfect batting average?
4 – The Federal Reserve devalues our currency.
Since the Federal Reserve was created in 1913, the U.S. dollar has lost 96 percent of its purchasing power. The truth is that just a two percent inflation rate will wipe out half of your purchasing power within a single generation. In the chart below, you can clearly see that the beginning of the rapid rise of inflation in the United States coincided with the creation of the Federal Reserve….
5 – The Federal Reserve manipulates the U.S. economy by setting national interest rates.
By keeping rates high or low, the Federal Reserve has the power to create economic growth or to destroy it. The have the power to inflate massive bubbles and to pop them. Most Americans give way too much credit and blame to presidents like Bush or Obama for how the economy is doing. The truth is that they really don’t have that much control over the economy compared to the Federal Reserve.
6 – The Federal Reserve also controls the national money supply.
They can pump trillions into the economy or pull trillions out without being accountable to anyone. This can have disastrous consequences. For example, after the U.S. stock market crash of 1929, the Federal Reserve continued to contract the money supply. Many analysts believe that this was one of the key things that precipitated the Great Depression.
7- The Federal Reserve is not part of the U.S. government.
The truth is that the Federal Reserve is about as “federal” as Federal Express is. In defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve objected by declaring that it was “not an agency” of the U.S. government and therefore it was not subject to the Freedom of Information Act. It is kind of funny how Fed officials are always talking about how important their “independence” is, but whenever anyone starts criticizing them for being private they start stressing their ties with the government.
8 – The Federal Reserve has become far, far too powerful.
The reality is that those running the Federal Reserve are not elected and yet have an enormous amount of control. In fact, Ron Paul recently told MSNBC that he believes that the Federal Reserve is more powerful than Congress.
9- The Federal Reserve is dominated by Wall Street and the New York banks.
The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals. The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.
10- Federal Reserve Chairman Ben Bernanke wants to completely eliminate minimum reserve requirements for banks.
Fractional reserve banking has always been a way that the bankers have conned the public, but now Bernanke wants to get rid of the pretense of “reserves” altogether.
It is almost too bizarre to believe…
11 – The Federal Reserve is not accountable to anyone.
Have you ever wondered if it was just a coincidence that the personal income tax was implemented just about the same time that the Federal Reserve was created?
If you take a few minutes to stop and think about it, an America where there is no Federal Reserve, no personal income tax and no IRS is not that hard to imagine.
It is time for different thinking. It is time for the U.S. government to take back control of our currency and of our economy. It is time to start electing some people with common sense to represent us in Washington.
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If “The Bear” has a central theme, it would be an attempt to wake up the American public to the fact that the Government has been hijacked by a criminal cartel, that the hijacking has been progressive and taken place over the period of 100 years…
Thanks, Larry. As if we didn’t know already! Anyway this pretty well sums up the case for let’s audit the Fed, then end it!
Thanks again for just another of many articles keeping us informed on this issue. I really appreciate your bulldog like tenacity on this subject. I continue to be appalled by the apathy, disinterest, and complacency expressed by the average American on this subject. Some “get it” when educated on this subject but most individuals I run across either don’t believe it, aren’t interested, don’t understand it, or just shrug in resignation, feeling powerless to do anything about it. I quite frankly think that TPTB, in a food shortage, could round us up for the Soylent Green processing centers and the average American would line up, bleating weakly, as they shuffle off to their doom.
This video is, to me, symbolic of the situation.
I thought I’d comment to bump this back up … yes, yes, knowing it is old news to everyone. But my 16 yo son was asking for clarification on the federal reserve so that he has his facts straight when he is talking to people and I knew a quick search here would give me the info. He is 16, so cannot vote, but has been watching the debates intently and is frustrated with the way so many seem to be following status quo (yet again.) It is becoming painfully aware to him that it is his future that *we* all (our generation) has been and is frittering away. He is doing his part to make a difference … having discussions with his friends – yes, 16 yo’s who talk about the candidates for president instead of american idol – and posting stuff on facebook.
How ’bout you? Have you done your part today to wake somebody up and get them to look at the facts and make an intelligent decision? If you are like me, you are burnt out about the whole thing and just focusing on your own prep work because nothing can stop the downfall now. You are tired of mentioning current affairs to people your own age only to have them brightly say “but the economy is looking up!” or “I just can’t think about that stuff, it’s too depressing.” Now that (their apathy) is depressing – and the reason most of us have given up trying to wake others up. But … what if you were 16 … wouldn’t you want to have hope for your future? Wouldn’t you want to think the current adults were willing to work till the end to avert the disaster we all think we can’t?
If you are tired of trying to wake people up for yourself … please do it today for a 16yo (or 15, 14, 13 ….)
This is really helpful for when broaching the subject with others and quickly trying to hit a few quick bullet points as to why this is such an important topic yet being completely ignored by the mainstream media.
Only Ron Paul, of all the major political figures, has tried to bring much attention to this.
RON PAUL 2012