The Great Bank Robbery: How the FED is destroying AmericaSubmitted by legalizeliberty on Tue, 06/30/2009 - 20:15
As global leaders struggle to rescue their nations from economic breakdown, the legitimacy of the dollar as the world’s reserve currency is under attack. Perhaps the problem lies with the Fed.
A large part of the “super” in the American superpower is based on the modern creed of liberal democracy, which serves as the motor of free-market capitalism. And the lubricant that keeps this colossal machine humming at full speed 24/7 is the US dollar. So before we risk any conjectures on the future prospects of America’s versatile banknote, which presently serves as the ‘world’s reserve currency,’ perhaps we should know more about who controls it.
In the Fed We Trust
It usually comes as a shock to people – especially diehard Americans who place infinite trust in their sacred Constitution – when they discover that the US dollar is not a product of the American government. That’s right, fellow consumers, that crumpled wad of dollars in your pocket is the product of the U.S. Federal Reserve, and despite the very official title, is about as “federal” as Federal Express. The reality is that the U.S. Federal Reserve is a profit-making venture just like Wal-Mart, General Motors or McDonald’s.
Yet the US Constitution clearly states (Article 1, Section 8) that one of the many functions of government is to “coin money, regulate the value thereof.” Indeed, this task was deemed so important that the Founding Fathers mentioned it ahead of the obligation to “raise and support armies.” The Constitution says absolutely nothing about outside parties being responsible for printing money or regulating interest rates.
To quote Abraham Lincoln, the 16th president of the United States, “The privilege of creating and issuing money is… the supreme prerogative of government.”
Today, a handful of blue-blooded American politicians (a very rare breed these days, it seems) are beginning to echo ol’ Abe on the very same issue.
Ron Paul, the congressman from Texas who made an unsuccessful bid for the 2008 Republican Party presidential nomination, represents a growing number of Americans who want to see the Fed severely tamed, or put out of business altogether.
“Congress created the Fed although it had no constitutional authority to do so,” Paul told his peers during a recent House investigative meeting. “We forget that those powers not explicitly granted to Congress by the Constitution are inherently denied to the Congress and thus the authority to establish a central bank was never given.
“Congress… has essentially given up its oversight responsibilities over the Fed: there are no true audits; Congress knows nothing of the conversations, the plans, and the action-taking in concert with other central banks. We get less and less information regarding the money supply each year,” Paul continued.
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