“If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Today, we hear of Bank Bailouts, Automobile Bailouts, AIG Bonuses and Unemployment. Our news media continues to belt out our symptoms, economic woes to us every night. We hear about the US Treasury and the Federal Reserve Bank asking for more power to regulate and solve the crisis. Yet, we have very few in Washington who are trying to solve the fundamental issue and simply not treating the symptoms. The news media does not have the ability to see past our symptoms and cure our underlying problem. Curing the underlying problem will stop our reoccuring symptoms.
The issue is the Federal Reserve Bank, a private bank established by the “Federal Reserve Act of 1913.” A private bank, given the power to issue the United States dollar, setting interest rates (price fixing), and being the lender of last resort. Creating this body eliminated the Free Market system America had tried to grow from. Issuing paper money and expansion of credit creates booms and busts far more disasterous than normal economic cycles. In the 1920s, the Federal Reserve Bank opened the flood gates and flooded the market with excess cash and credity. The roaring 20s were great, but it came at a price. Towards the high of the stock bubble anyone off the street could purchase Stock with nothing down, sound familar? 100% margin, no money down and all the money you could trade with. Subsequently, the Dow Jones Industrial Average suffered its wrose loss in it history. The creation of new money and credit lead to the rise and the fall; ultimately the Great Depression.
Haven’t we learned from History? Evidently not, as we continue to repeat the mistakes of money. Issuing paper money simply diminishes its purchasing power. John Law and his Brittish East India Company is a great example of how paper utlimately fails. Not only do we NOT have to look that far back but we can look back at German hyper-inflation during the Weimar Republic. Issuing paper money is a short gain but ultimately becomes worthless. If we continue down this path, our precious US Dollar will be worthless.
If we do not learn from history we are doomed to repeat it. Will the rest of the world stay confident that the US Dollar will hold its value? If they do lose confidence, you can expect prices to soar and HYPERINFALTION to settle in.
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