Do We Need Central Banking
The constitution provides ample ways for the federal government to make money, it’s called tariffs, i.e. taxing imports and exports. But, big business has such a stranglehold on congress that they gave China most favored nation status, so that stores like Wal-Mart and Target could sell plastic much cheaper than our very own American made products.
There was never a need for an income tax. As it stands now, the only reason we have an income tax is to pay off the money we borrow form the federal reserve.
Without the federal reserve bank, who creates money out of thin air, the u.s. government could go back to doing what it should have been doing, printing it’s own money and putting the full faith and credit in U.S. backed currency, instead of federal reserve notes. Income tax, as they stand now, simply pays off the interest of the federal reserve. At every session of congress, the house and senate then turn around and borrow more money from the federal reserve bank.
Without the federal reserve there would be no need for a national deficit. The only reason we have one now, is that we are borrowing our own money from a private bank. Everyone is under the delusion that the federal reserve is a centralized bank, i.e. a government bank. It is neither a federal government owned entity, nor does it have the full faith and credit of the U.S. department of treasury behind it. It is very possible for it to go under.
Do We Need Central Banking?
Ask any fine upstanding citizen and they will say we NEED central banking. Then if you dig deeper, you’ll see that they are fully indoctrinated by their own education. The study of economics has been completely arrested and captured by Wall Street. Want a job on Wall Street? Make sure you’re educated exactly as everyone else is and believe that Keynesian Economics is your mantra. Above all else, make sure that you, not only, not know anything about the Austrian School of economics, but that you mark it down as untenable and barbaric.
Keynesian economics assures mutually assured destruction of the U.S. and the rest of the world. So the question is do we need a central bank?
The reasons put forth as to why we need a central bank:
- 1)it issues coins and currency to commercial banks and other financial institutions.
- 2)it provides short term loans for commercial banks.
- 3)it controls the credit creation powers of commercial banks(for controlling inflation and deflation in the economy).
- 4)it acts as a banker to the government(it keeps all of the government’s deposits and makes payments on it’s behalf).
- 5)it acts as an adviser to the government(it advises the government as to what kind of economic policy it should adopt).
- 6)it has major role to play in the money market of an economy(where short term loans are borrowed and lent).
- 7)it re-discounts bills of exchange for commercial banks.
However, this is where the confusion comes in. We have a department of treasury that can do all of that, that is completely limited by the constitution. The federal reserve bank act of 1913 essentially circumvented the constitution. What the real federal reserve now does is:
It’s primary function is to defraud the population for the benefit of the government, and the government’s pet favorites, such as the military industrial complex, the bankers themselves (in exchange for giving government a share of the money stolen), and whoever the government thinks it can bribe for votes. It’s literally that corrupt. The reason it can go on under our very noses is because most people don’t understand it.
What a central bank does is inflate the supply of money or money substitutes, in other words, it dilutes the existing stock of money by printing more pieces of paper and calling it money. This causes a number of serious negative side-effects.
The first one is that it causes a drop in the value of money. Your money is worth less. That’s why the dollar has lost 94 percent of its value since the Federal Reserve was started in 1913. Considering one of the main purposes of the federal reserve is to stabilize prices, we must conclude that it has been a complete failure, compared to the absence of a central bank.
The second negative effect is that inflation is government’s main means of funding wars which apart from being supremely immoral, are also extremely destructive of wealth. The USA has become a nation of perpetual war in case you haven’t noticed.
The third negative effect is that all the central bank is doing is re-distributing wealth. It’s not creating wealth – if it was, we would have found a way to create wealth by stamping pieces of paper. We haven’t. All it does is take property from people who own it, and give it entire industries who live at the expense of the productive classes. Basically the central bank enables governments to loot the savings of the entire population without having to bother rifling their pockets to do it.
The fourth negative effect is that the newly printed money creates a bubble in the sector where it enters the economy. That’s why there was a bubble in the housing sector – because that’s where government was injecting the money. The bubble draws capital away from actual productive activity, such as growing food, or making medicine, and channels it into wasteful activity like making condominiums with gold faucets and five bathrooms. This is because the bubble makes activity appear profitable that, absent the manipulation of the money supply, would be seen to be loss-making (think, for example, investing in real estate during the bubble. The profits made by the speculators and financiers come from skimming the wages of millions of people too poor to own their own house, all courtesy of the central bank).
The fifth negative effect is it distorts the capital structure, in other words, it causes massive dislocation between where people *are* and where people would be productively employed. The boom collapses into the bust with its bankruptcies, unemployment, homelessness, family breakdown, suicide, hardship, depression and ruined lives – all while the privileged continue slurping at the trough.
The sixth negative effect is moral. The policy of credit expansion corrupts the entire value system of society. It punishes work, savings, individual responsibility and building a future. It rewards debt, consumption, instant gratification, speculation and political favoritism.
The declared purpose of the Fed is full employment. In the time since the Fed has been on the job, we have had the two biggest depressions and highest unemployment in the history of the world.
The justifications given for the central bank – that it is necessary for government to “manage” the economy, presupposes that government has a competence to manage the economy in the first place. There is neither evidence nor reason to support this supposition.
The reason economists have the gall to try to justify this institutionalized fraud is because most of them rely, directly or indirectly, on the Federal Reserve or the federal government for their privileged existence. They are like the high priests of old preaching to the masses that Pharaoh can do no wrong even while he and his acolytes live at their expense.
Our central bank has not acted in good conscious toward the people of the U.S.. Time and again they have been asked if what they are doing are for the people and to do something about it, to which they unequivocally say “no”.
Interest rates on a savings account nationally is now at 0.01% The highest yields are boasting a whopping 1.0% APR.