3 votes

Define: Central Bank

In order for us to win we have to find the root of our problem and express it in a way that most people understand it.

It seems the only thing we ALL can agree on is the corruption at the Fed. Its history is checkered with questionable actions. It seems that they always profit the most from war.

We have the power to make a message viral. Ron Paul did it and didn't even try. Instead of being divided over Rand and Ron, we should unite around a common message that brings our neighbors to our side.

We have a winning message.

I disagree with Nystrom. We are not fringe. We are the actual grassroots. It was us that sent Rand to the Senate. It is us that pushed for legislation to audit the Fed. We matter.

Please define the Central Bank to you. Include your opinions and express your facts. Please include links. In order for our movement to win, we better start tuning our message and rallying our troops.




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

No agreement here

I think it ought to be understood by every Friend of Liberty that the Central Bank (Legal Crime) tool is not a problem, it is a solution.

I think that there are Counter-Revolutionary Forces working in the brains of all the people who would otherwise be a combined, collective, mutually beneficial, productive, and not a destructive POWER that nullifies any criminal behavior especially criminal behavior done under the color of law.

The Central Bank, so called, can be anything volunteers want it to be, but as soon as the volunteers volunteer to use POWER in the bank, or the POWER not yet in the Bank, to injure innocent people by resort to deception, threats, and violence, then that tool, full of Gold, or full of lies, is crime, with or without a shinny badge, or a False Constitution.

Unfortunately for US, these Untied States, filled with dupes who have allowed Counter-Revolutionary Forces into their brains, in the form of Liars calling themselves Federalists, and then any other name that accomplishes the same task, We The People constitute the land of the DUPES.

We can actually be led to believe that a gun did it.

We can actually be led to believe that a government did it.

We can actually be led to believe that a fiat did it.

We can actually be led to believe that it is too much work to go to Jury Duty.

We can actually be led to believe that involuntary associations, written on paper, are our laws in our land.

Those are all thoughts that were not thoughts owned by the people who constituted Revolution in this Land.

In a phrase, in English: The Spirit of Liberty.

This topic stood out on this morning to me, but I think I need to get this present line of thinking moved to my own topic.

Meanwhile, branching off slightly, from the Counter-Revolutionary Topic, and back onto this Central Banking Topic it may well be a good idea to stop thinking in terms of THINGS being held responsible for the actions of people.

When a group of volunteers are beset, and momentarily broke, do they succumb to external forces whereby the external forces aim to enslave the volunteers by any means necessary including torture and murder that they intend to make legal: because they do it, and because they love it?

No, so a Central Bank TOOL has a legitimate, voluntary, productive, Liberating, use, in cases of dire emergency.

If the volunteers have to bet the farm, going all in, it is because failing to do so, or do so and failing, is the same result, no more farm for you.

Joe

Central Banking...

...is about creating a banking cartel. "Cartel" evokes images of a bunch of evil schemers smoking cigars somewhere, and while that's true enough, there's a more precise economic meaning to the term, which I'd like to explain.

A cartel is a set of firms in some industry, which agree not to compete with one another. They fix an above-market price at which they all agree to sell. The cartels must not only eliminate competition between its members, but also prevent non-members from competing with the cartel - otherwise they will not be able to maintain their above-market price. Voluntary cartels have been attempted historically. They all collapsed quickly, without exception. Voluntary cartels inevitably collapse because the members cannot resist competing with one another, and they have no really effective means of preventing non-members firms from competing with the cartel. When voluntary cartels failed, the would-be cartelists turned to the government. They wanted the government to use its power to forcibly prevent the members of the cartel from competing with one another, and forcibly prevent non-members from competing with the cartel. They succeeded. The entire regulatory apparatus is designed to cartelize the system: e.g. the FDA and DoA cartelize the food and drug industries.

The move toward central banking in the US, culminating in the creation of the Fed in 1913, is just another example of this. Wealthy business interests wanted to form a cartel, and needed the government to support it. A banking cartel works a bit differently from any other kind of cartel, because banking is a rather unique business. The goal of banking cartels is to coordinate inflation. That is, to make sure that all the banks are creating credit at approximately the same rate. The reason is this. If the banks aren't coordinating their inflation, the banks inflating the most start to lose reserves to the bank inflating the least, until eventually they run out of reserves and go bankrupt. This is what occurs in a free market in banking, there is a natural check on the extent to which any bank can expand credit. Of course the banks don't like this check - they want to expand as much as possible. So they must coordinate, then there is no net loss of reserves from one bank to another, and no bankruptcies interrupting the credit expansion. So how does a banking cartel coordinate inflation? Reserve requirements. The central bank forces the cartel members to maintain certain reserve requirements, which means they are all inflating at the same rate. The central bank also standardizes bank notes. Before central banking, each bank issued its own notes. When you made a withdraw, you didn't get Federal Reserve Notes, you got ABC Bank Notes. Standardizing notes means that any one bank's notes are viewed as being the same as any other's, which helps spread the risk around the system and reduce the risk of a bank run on any one bank. Finally, the central bank acts of "lender of last resort," available to create credit to keep any one bank solvent in the event of a crisis. What a deal! Now the banks can basically inflate at their hearts content, much more than before, and if anything does go wrong, their pals at the central bank have unlimited funds to bail them out.

So that's what central banking is about. It is about maintaining a banking cartel, which increases bank profits at the expense of the consumer and the public at large - as with all cartels. And, of course, central banks have an extra-close relationship with governments, as do banks in general, since they play a role in funding them. In a sense the banking cartel, the system of central banking, is the dominant cartel of the many cartels which constitute this huge fascist system.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Federal Reserve Act, 1913: to Create "Elastic Currency"

Says in line one of the Federal Reserve Act, 1913: to furnish an elastic currency.

    An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.

The second sentence takes the stretch from the first sentence above & stretches further:

    Be it enacted by the. Senate and House* of Representatives of the United States of America in Congress assembled, That the short title of this Act shall be the "Federal Reserve Act." Wherever the word "bank" is used in this Act, the word shall be held to include State bank, banking association, and trust company, except where national banks or Federal reserve banks are specifically referred to. The terms "national bank" and "national banking association" used in this Act shall be held to be synonymous and interchangeable. The term "member bank" shall be held to mean any national bank, State bank, or bank or trust company which has become a, member of one of the reserve banks created by this Act. The term "board" shall be held to mean Federal Reserve Board; the term "district" shall be held to mean Federal reserve district; the term "reserve bank" shall be held to mean Federal reserve bank.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Cyril's picture

Fact of the matter is: "Central Banks" just are NOT real "banks"

Fact of the matter is: "Central Banks" just are NOT real "banks" - and BY FAR, as I see it.

They are a whole "something else"... (rather MUCH undesirable)

So, now for my own definition, that I was kind enough to share with Mr. Paul Krugman, himself, a while ago (am I not that super sweet guy?! ;)

Quoting:

http://www.dailypaul.com/271915/i-have-posted-this-on-mr-kru...

"[...]It's like in a rigged game of Monopoly. You're not the banker, just a regular player, but you have a unique privilege: you can have the banker print and hand you out as many bills as you wish during the game without the other players knowing. Need a drawing?

I urge everybody to re-read the Article 1, section 10 of the Constitution."

...

hence, what I meant to say, which maybe isn't evident enough, is:

the real "banker" (worth of the name - if we care about language utilization) is the one who has VAULTS, with GOLD in those.

The "Central Bank" is that "THING" which inserted itself between the real bank(s)/banker(s) and the markets / public to use an "elastic" device as regard to measuring the amount of gold that sits in the vaults.

And THAT is The VERY Ugly of the Central "Banks" nature.

See also: FIAT money.

Makes sense?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Federal Reserve Act, 1913. First sentence : "elastic currency."

FEDERAL RESERVE ACT, 1913 (Preamble shown here; full text at link)

    "An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford [make-believe] means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

Fed + IMF & Boyz 05/15/2011

Fed Inflates Itself Beyond "Alice in Wonderland"$2 Quadrillion 03/03/2010

H... Birthday Fed Reserve Merry Redacted! Submitted by Mark Twain on Mon, 12/24/2012

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Cyril's picture

On "elasticity"

Yup. And I tell you in truth:

THAT sort of "elasticity" is the VERY Evil we will want to never allow happening again...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

A simple definition

A simple definition

Per http://austrianeconomics.wikia.com/wiki/Central_bank :

A central bank is a bank responsible for the monetary policy of a country. This usually entails the control of commercial banks, a monopoly on the issue of banknotes, and other privileges.

"Given that money is one half of every commercial transaction and that whole civilizations literally rise and fall on the quality of their money, we are talking about an awesome power, one that flies under cover of night."

Ron Paul, in "End the Fed", on the powers of a central bank

P.S.
If one asks me, the above definition PERFECTLY matches the idea I used to have about the "Banque de France" (french Central Bank), for instance

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Definition: "Top of the MAFIA"

.

I dont know who is credited with this statement:

The only difference between the mafia and the government is that the govt has a flag.

'Peace is a powerful message.' Ron Paul

Central Bank definition

THE PROBLEM.