How to Abolish the Fed and Convert to Gold as Money
Now that Rep. Ron Paul (R, TX-14) has become Chairman of the House Financial Services Subcommittee, which provides congressional oversight of our central bank, the Federal Reserve System (Fed), the managers at the Fed are facing the dreaded time when they may have to reveal the secret dealings that they use to help their political and banking friends worldwide.
Vanity and job security are a big part of what guides Fed managers. They love the power and prestige of their jobs, and do whatever is needed to please the politicians who put them there. Of course, most of them are ‘true believers’ in the need for their control of ‘monetary policy’, despite the horrible record of the Fed, which has caused the US Dollar to lose over 95% of its value (purchasing power) causing prices to rise (price inflation) since the illegal, unconstitutional, creation of the Fed in 1913. The main reason for this decline is expansion of the money supply (monetary inflation) caused by creation of fake ‘fiat’ money; where ‘face value’ is decreed by the government, even though the material it is made of may have more or less market value.
Most countries have central banks, but ours is the only one that is a private corporation owned by other banks; more on that below. Rep. Paul has made his concerns and solutions clear in his popular September, 2009 book End the Fed, as I have in my December, 2010 book Monetary Revolution-USA. As in these books, this essay will show why sound money (coins made of, or paper backed by, a commodity such as gold or silver) ends the so-called need (and means) for the counter-productive meddling of ‘monetary policy’ and fake money by the Fed in our nation’s economy.
Post by fairlycrazy23 on Jan 30, 2011 0:02:51 GMT -5
I'm not sure what purpose the FED serves, why should a private entity be able to buy assets from I guess anybody just by printing money. i'm not even sure it is legal for congress to have created something like the Federal Reserve, abdicating its authority to print money. At the very least it needs to be overhauled.
The BEP prints physical currency, but they are Federal Reserve Notes, not United States Notes.
The Federal Reserve orders new currency from the Bureau of Engraving and Printing, which produces the appropriate denominations and ships them directly to the Reserve Banks. Each note costs about four cents to produce, though the cost varies slightly by denomination.
Virtually all of currency notes in use are Federal Reserve notes. Each Federal Reserve Bank is required by law to pledge collateral at least equal to the amount of currency it has issued into circulation. The bulk of the collateral pledged is in the form of U.S. Government securities and gold certificates owned by the Federal Reserve Banks.