Looking At How the FED’s Fiat Money Cartel Works

The FED is an unconstitutional money cartel of private banks that have been given the power of money creation-for-a-fee. A power originally reserved for the people by the constitution.

This power, given to a consortium of privately owned interests, is why the 20th century was the most barbaric in history and why our money is virtually worthless at this point. 

Consumer Purchasing Power FED

Consumer Purchasing Power of the Dollar According to the FED: Coincidence that Our Money is Now Worthless?

The Socialism of the Federal Reserve

by Jacob G. Hornberger November 19, 2019

“For more than 100 years, the official money of the United States was gold coins and silver coins, as established by the Constitution. During most of that entire time, there was no Federal Reserve or central bank.

That gold-coin, silver-coin standard provided the soundest money in history. Along with a system based on no income taxation, no immigration controls, no welfare state, no warfare state, and very few economic regulations, America’s monetary system was a major factor in the tremendous increase in rise of the standard of living of the American people in the 19th and early 20th centuries.

In the early 1900s, Americans began giving serious consideration to socialist ideas. The enactment of the Federal Reserve in 1913 was part of that trend. So was the adoption of the federal income tax that same year.”

Read More: https://www.fff.org/2019/11/19/the-socialism-of-the-federal-reserve/

How Central Banks Fund Our Age of Endless War

Llewellyn H. Rockwell Jr.  10/31/2019

The 20th century was the century of total war. Limitations on the scope of war, built up over many centuries, had already begun to break down in the 19th century, but they were altogether obliterated in the 20th. And of course the sheer amount of resources that centralized states could bring to bear in war, and the terrible new technologies of killing that became available to them, made the 20th a century of almost unimaginable horror.

…It’s no surprise that Ron Paul, the man in public life who has done more than anyone to break through the limits of what is permissible to say in polite society about both these things, has also been so insistent that the twin phenomena of war and central banking are linked. “It is no coincidence,” Dr. Paul said, “that the century of total war coincided with the century of central banking.”

He added:

If every American taxpayer had to submit an extra five or ten thousand dollars to the IRS this April to pay for the war, I’m quite certain it would end very quickly. The problem is that government finances war by borrowing and printing money, rather than presenting a bill directly in the form of higher taxes. When the costs are obscured, the question of whether any war is worth it becomes distorted.

For the sake of my remarks today I take it as given that Murray Rothbard’s analysis of the true functions of central banking is correct. Rothbard’s books The History of Money and Banking: The Colonial Era Through World War II, The Case Against the FedThe Mystery of Banking, and What Has Government Done to Our Money? provide the logical case and the empirical evidence for this view, and I refer you to those sources for additional details.

For now I take it as uncontroversial that central banks perform three significant functions for the banking system and the government. First, they serve as lenders of last resort, which in practice means bailouts for the big financial firms. Second, they coordinate the inflation of the money supply by establishing a uniform rate at which the banks inflate, thereby making the fractional-reserve banking system less unstable and more consistently profitable than it would be without a central bank (which, by the way, is why the banks themselves always clamor for a central bank). Finally, they allow governments, via inflation, to finance their operations far more cheaply and surreptitiously than they otherwise could.

Read More: https://mises.org/library/how-central-banks-fund-our-age-endless-war

In The Fed We Trust – Part 1

Written by Michael Lebowitz | May 15, 2019

Fed Balance Sheet: The Fed uses its balance sheet to buy and sell U.S. Treasury securities to manage the money supply and thus enforce their interest rate stance. In 2008, their use of the balance sheet changed. From 2008 through 2013, the Fed purchased nearly $4 trillion of Treasury and mortgage-backed securities in what is called Quantitative Easing (QE). By reducing the supply of these securities, they freed up liquidity to move to other assets within the capital markets. The action propped up asset prices and helped keep interest rates lower than they otherwise would have been.

Since 2018, they have reversed these actions by reducing the size of their balance sheet in what is called Quantitative Tightening (QT). This reversal of prior action essentially makes the benefits of QE temporary. However, if they fail to reduce it back to levels that existed before QE was initiated, then the Fed permanently monetized government debt. In plain English, they printed money to extinguish debt.

As we write this article, the Fed is in the process of ending QT. Based on the Fed schedule as announced on March 20, 2019, the balance sheet will permanently end up $2.28 trillion larger than from when QE was initiated. To put that in context, the balance will have grown 269% since 2008, as compared to 48% economic growth.

Read More: https://realinvestmentadvice.com/in-the-fed-we-trust-part-1/