END the FED?Submitted by Skyrider on Tue, 04/26/2011 - 15:09
Dr. Ron Paul wants to End the Fed?
Does any other potential candidate believe that the Federal Reserve Bank is the menace Dr. Ron Paul says must be stopped?
It might be helpful to compare the Fed (Federal Reserve Bank), with an ordinary farmer. I shall put economic terms in CAPS in this article.
What would happen to the VOLUME or YIELD of a farmer's crops if he were to plant his seed, water it, harvest it in its season, year after year without ever fertilizing the soil? Suppose all farmers did this. What would happen to the VOLUME or YIELD of their crops? Of course, they would shrink less and less each year.
What would happen to PRICE?
MONEY chasing fewer GOODS and SERVICES would cause the PRICE to go up. We call this INFLATION.
Common dictionaries will define INFLATION as the expansion of the VOLUME of CURRENCY and BANK CREDIT out of proportion to the available GOODS and SERVICES in CIRCULATION which results in a considerable and prolonged rise in PRICES, WAGES and other costs. More specifically, it is the increase of the CURRENCY of a country by the issuing of paper "money" which is not redeemable in SPECIE -- gold or silver.
Imagine a counterfeiter was either given license to print MONEY indiscriminately or was never caught. He could print and spend without reservation. Would he be returning anything to the ECONOMIC soil of his country? Of course, not! Counterfeiters punch no clocks, work in no endeavors which PRODUCE any VALUE, yet they CONSUME GOODS and SERVICES in ever greater amounts.
What would happen to the VOLUME or YIELD of GOODS and SERVICES if counterfeiting was left unchecked? More specifically, what would happen to PRICE?
Dr. Ron Paul knows that the Federal Reserve Bank is NOT an agency of the United States but as a privately owned monopoly which orders "Federal Reserve Notes" for a few cents for any dollar denomination which are then conveniently circulated through its member banks for full face value. Moreover than that, the FED charges INTEREST on that. Something no counterfeiter ever dared.
The FED was created by an Act of Congress on December 23, 1913 after most members had gone home for Christmas. But the Sixteenth Amendment of the United States Constitution became effective on February 3rd of that same year creating the Internal Revenue Service (IRS), another institution Dr. Ron Paul would like to abolish and require Congress to obey the Constitution it has vowed to uphold.
So, should We the People END the FED? Is Dr. Ron Paul on to something here? If Dr. Ron Paul is correct, he stands alone in a crowd with the only message that would save our country.