Electric Monkey Pants

This is a decent article, but Krugman has to recognize that inflation is basically government theft. The Fed controls how much inflation there is by printing cash and making loans. The fact that there’s usually money to be had keeps us out of trouble, but political and economic forces can also cause inflation (oil prices, for example). Even the moderate amount (small by Fed standards) of inflation we’ve experienced lately is too much because it’s so continuous. A few deflationary periods ever now and then wouldn’t hurt. There would be less money in circulation, but the cash you did have would become more valuable.

The Fed’s insistance of constant boom times has created a boom-bust cycle when we should have a normal up and down cycle. I think it’s time we take a look at where the Fed is leading us and ask whether they have people’s interest at heart. After all, they are not elected, yet they control our encomony, which is arguably even more important (read: more powerful) than our democracy (such as it is). I think we need to take a long, hard look at the Fed and wonder if we really need it.

Some quotes about the Federal Reserve System:

“From now on, depressions will be scientifically created.” — Congressman Charles A. Lindbergh Sr. , 1913

“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money” — Charles A. Lindbergh Sr., 1923

“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.” — Boston Federal Reserve Bank

“I have never seen more Senators express discontent with their jobs….I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.” — John Danforth (R-Mo)

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.” — Thomas Jefferson, U.S. President.

“If Congress has the right [it doesn’t] to issue paper money [currency], it was given to them to be used by…[the government] and not to be delegated to individuals or corporations.” — President Andrew Jackson, Vetoed Bank Bill of 1836

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.” — James Madison

“The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.” — Sen. Barry Goldwater (Rep. AR)

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — James A. Garfield, President of the United States

“Banks lend by creating credit. (ledger-entry credit, monetized debt) They create the means of payment out of nothing.” — Ralph M. Hawtrey, Secretary of the British Treasury

“To expose a 15 trillion dollar ripoff of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business.” — Buckminster Fuller

“Every Congressman, every Senator knows precisely what causes inflation…but can’t, [won’t] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job.” — Robert A. Heinlein, Expanded Universe

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.” — Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” — Congressman Louis T. McFadden in 1932 (Rep. Pa)

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.” — Congressman Louis T. McFadden (Rep. Pa)