Posts in "Federal Reserve"

Dustin Reid's picture
By Dustin Reid at 6:52AM

"International Bankers Run the World," says 'Rich Dad'

If you love somebody, buy them this book. It might save their life. 

Watch, Kiyosaki laugh at the 2:17 mark. It's all so obvious to those who pay attention.

Matt Cockerill's picture
By Matt Cockerill at 7:03PM

"What Happens in Jekyll Island Stays in Jekyll Island?"

I envy those of you who  attended the Mises Institute's "Birth and Death of the Fed" conference  on Jekyll Island, GA.  Not only did you get to learn from superb scholars and mingle  with fellow libertarians, but -- if your mind works anything like mine --  you  enjoyed  imagining  just what those rich powermongers were planning, so long ago, on that same  island  you now found yourself on. Why did they want to create the central bank? What "extracurricular" activity did they engage in following the end the formal gathering?

Though an establishmentarian drone  may think the "public good" and "wholesome fun" were on the  Banksters' itinerary, liberty activist Megan Duffield knows better. She wants attendees to offer their guesses as to exactly  what went down at the Fed-Forming conference. To have some fun at the expense of the bad guys, and to make light of a usually serious and even frightening issue, send your ideas in!

Brian Beyer's picture
By Brian Beyer at 8:04PM

Three Down, Four to Go

Today, vice chairman of the Fed, Donald Kohn announced that he will be retiring effective June 23rd. This marks three vacancies on the board. If only they would all retire, resign, or merely keel over. Let's just hope these positions could be filled with people like Lew Rockwell and Robert Murphy. Then we could really End the Fed!

Preston Mui's picture
By Preston Mui at 3:40PM

NYT: Fed Is Not Politically Independent!

OK, they didn't say so in so many words. But in an article about Donald Kohn, the vice-Chairman of the Federal Reserve retiring, they reported (emphasis mine):

His departure would bring to three the number of vacancies on the Federal Reserve’s seven-member board of governors, and gives the Obama administration the chance to significantly affect the governance of the Fed and its conduct of monetary policy. Mr. Kohn’s announcement also comes as the Senate is considering a vast overhaul of financial regulations that might include a reduction in the Fed’s powers to oversee banks.

To Fed defenders:  So, does the Obama administration's ability to "significantly affect" the Fed and its "conduct of monetary policy" count as political independence?

Dustin Reid's picture
By Dustin Reid at 7:06AM

Bernanke gives Paul the "Idiot Treatment" (Watergate Payoffs)

paulbernanke

From History News Network:

After Ron Paul raised questions about possible past Federal Reserve misdeeds including allegations of involvement in Watergate payoffs, Ben Bernanke answered smugly: "These specific allegations you've made, I think are absolutely bizarre."

The crowd reflexively laughed at Dr. No's perceived looniness and pundits have already depicted his concerns as "wild" and "odd."

Well, it seems that Paul may have been onto something...or at the very least raised legitimate questions that deserve investigation. A few minutes on Google news produced this 1982 story from theMilwaukee Sentinel by Richard Bradee of the paper's Washington Bureau:

"Police who searched the room the Watergate burglars used found $4,200 in $100 dollar bills, all numbered in sequence. Proxmire asked the Federal Reserve Board where the money came from. As he explained in a letter to the late Rep. Wright Patman (D-Tex.), chairman of the House Banking Committee: "I got the biggest run-around in years. They ducked, misled, lied, and gave me the idiot treatment."
Bonnie Kristian's picture
By Bonnie Kristian at 3:40PM

Quotes About The Federal Reserve And Central Banking

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States."
-Sen. Barry Goldwater

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
-Henry Ford

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations."
-Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers."
-Congressman Louis T. McFadden

Find more...umm...money quotes here.

Matt Cockerill's picture
By Matt Cockerill at 6:31AM

The Wrong Way to Argue "End the Fed"

Murray N. Rothbard is probably my favorite philosopher and economist -- I have adopted wholesale his natural rights/deontological libertarianism, and his application of this ideology to war and punishment theory. I have fallen in love with the writing of his favorite author, H.L. Mencken. Even on those issues I disagree with Rothbard on -- such as abortion, immigration, and children's rights -- I have to admit that he makes extremely strong cases.

But in my opinion, MNR's view on Fractional Reserve Banking is uncharacterically poorly thought out.  While I certainly join him in calling for the abolition of that monster we call the Federal Reserve, Rothbard believed that Fractional Reserve Banking was inherently illicit and would be outlawed in the free society. He argued that since a bank in such a system does not actually have all the money it is storing and lending out, it is engaging in "fraud."

It certainly is criminal for the state to  outlaw any competition with the money its Federal Reserve controls the supply of.  Because we must accept the Fed and Fractional Reserve Banking, this enables  them to do all sorts of evil things, to include the ability to create endless money to fund wars, pay back debts, and print their own budget.  Surely, a "gold standard" or some sort of Full Reserve Banking, would be far preferable to Fractional Reserve Banking. This would at least limit the amount of money they could produce.


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Brian Beyer's picture
By Brian Beyer at 6:20AM

The Rascal Is Back, But We're Gaining Momentum

Unfortunately, the head of the printing press was renominated. This means another four years of inflation, artificial interest rates, and bubbles. However, I and hopefully the rest of the anti-Fed movement should be ecstatic about how much criticism has been directed at the Fed recently. Bernanke's reconfirmation by a vote of 70 to 30 seems like a landslide, but it is in fact the most opposition to a Fed chairman ever. No matter how meaningless the Fed establishment will try to make this sound, it is in fact very significant. Our ideas are catching on and they are about the only bipartisan thing in Washington these days. We have to keep up the fight. It's a good one and it will be well worth all of our time. 

End the Fed!

Luke Walker's picture
By Luke Walker at 8:56PM

Sound economics or insanity?

bernankeAlbert Einstein once defined insanity as "doing the same thing over and over again and expecting a different result."

An article in USA Today entitled "Fed keeps interest rates near zero; economy continues to 'strengthen'" seems to fit the definition.

I would go out of my way to strongly emphasize the quotes around the word strengthen. Artificially low interest rates are what brought our economy to the sad state it is in and are what continue to drive the economy closer to a depression. Though the article pretty much spouts typical Keynesian rhetoric and acts as though a "jobless recovery" is a completely rational explanation for the current state of un-employment in the country, it does contain one small grain of truth:

Super-low interest rates are good for borrowers who can get a loan and are willing to take on more debt. But those same low rates hurt savers. They're especially hard on people living on fixed incomes who are earning measly returns on savings accounts and certificates of deposit.

The article does not explicitly explain why low interest rates hurt savers and low income earners but those who are familiar with Austrian economics will know that it is the inflation that is born from these low interest rates that causes the destruction.


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Preston Mui's picture
By Preston Mui at 8:25AM

Miron: Bernanke Should be Reappointed

Libertarian professor Jeffrey Miron believes we should reappoint Ben Bernanke:

You might be suprised by that answer. To be clear, I think the Fed has erred tremendously during Ben's first term, both by supporting the bailouts and by expanding the Fed's actions beyond standard open market operations (e.g., buying up mortgage-backed securities).  In my utopia, the Fed would not exist at all.

But we do not live in that utopia (yet).  If Ben is not confirmed, we will stil have a Fed, and someone will be chairman.

Some of the points Miron cites are:

3. Most distinguished candidates to replace him will be horrified if he is not confirmed.  So, his successor may be far less talented.

5. Stability in policy is important, even if that policy is not perfect.  If Ben is not confirmed, uncertainty about monetary policy increases dramatically.

It's important to remember that being anti-Fed does not necessarily mean you must be against Bernanke's appointment. For example, I'd like to get rid of the FDA; however, that does not necessarily mean I must be against the people running the FDA. What would you say in support or against Miron's opinion on Bernanke?