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Federal Reserve Steals From the Poor and Gives to the Rich


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Federal Reserve Steals From the Poor and Gives to the Rich

Ron Paul
Prison Planet.com
November 18, 2013


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.

 

http://www.prisonplanet.com/federal-reserve-steals-from-the-poor-and-gives-to-the-rich.html

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The Fed has never done anything that wouldn't have been done faster and better without their existence, without the exception of creating bubbles that burst and leave people destitute. The time to abolish The Fed was in 1913. We're 100 years too late.

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Just imagine how the economy would have benefited, if that 85 billion $$ per month QE had been applied directly to main Street, and not the Wall Street crooks!

 

There would be a recovered, booming economy!

 

Obama and Congress cannot control the Fed. The Fed controls them. Fed is a private concern run by rich, elite, mostly foriegn investors who do not give a crap about you and I.

 

An quasi illegal CARTEL!

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Who owns the PRIVATE federal reserve?

No genetic lifeform, ideology owns the Federal Reserve and Humanity..Patents, copyrights, and trademarks that charge a fee to be used in recital of maybe nobody knows what real is currently.

 

Reality is a constant question of what is real tomorrow compared to how did real exist yesterday debated today every spin of the planet called a day in the life character matters and genders are stupid instinctive savages.

 

Morals, ethics, and honoring legaliities is becoming sophisticated and aristocratic in staqging what humanity becomes with each ancestor added to the collective thought process in ignoring the self evident..

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Who owns the PRIVATE federal reserve?

 

A good question. Buehler?

 

Just imagine how the economy would have benefited, if that 85 billion $$ per month QE had been applied directly to main Street, and not the Wall Street crooks!

 

There would be a recovered, booming economy!

 

An quasi illegal CARTEL!

 

Wow....something I agree with you on.

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Who owns the PRIVATE federal reserve?

I don't know if you can say it is "owned" by anyone. It is a cartel, made up of several private banks free from the prying eyes of our government, or anyone else for that matter. They do what is in the best interest of banks, and banks only. Anyone who thinks they serve the interests of our nation or its monetary policy is sorely mistaken.

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What would Ron Paul replace the Fed with?

 

Monetary policy cannot be trusted with the whims of an extremist Congress, or some autocratic bureau like the EPA.

 

Some sort of independent National Bank would need to be set up, overseen by the people. And not tied with the World Bank or IMF or Wall Street.

 

This is fraught with problems!!!!!

 

How would you keep the oligarchs out of it?

 

Anyone have any answers? Paulies are welcome. :o

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