Central Banks - Bad or Good?

Central Banks – Bad or Good?

My Blog – My opinion – Central Banks are a bane on Free Enterprise! We did better on the Gold Standard; in fact, the entire world did better on the Gold Standard! “Bean Counters” can be found on both sides of this issue and they have a talent of trying to blow sunshine up your butt – Bu-u-u-t, I ain’t buying it anymore!

"It is a sobering fact that the prominence of central banks in this century has 
coincided with a general tendency towards more inflation, not less. [I]f the 
overriding objective is price stability, we did better with the 
nineteenth-century gold standard and passive central banks, with currency 
boards, or even with ‘free banking.’ The truly unique power of a central bank, 
after all, is the power to create money, and ultimately the power to create is 
the power to destroy."
 Paul Volcker
former Federal Reserve chairman
 Foreword of "The Central Banks"

I would think he would know because this is the statement by an enemy of the Gold Standard! We are seeing Mr. Volker’s prediction coming to fruition under the insane “Q.E.” programs by the current Fed Chairman, Ben Bernanke! Bernanke is doing exactly what FDR did in the Great Depression that extended the depression by 8 years! Only Bernanke is making it worse because he isn’t being withheld from creating money out of thin air as FDR was because we were still under the Gold Standard in the ‘30’s!

Bernanke is doing exactly what Germany did when the Weimar Republic printed fiat money to cover their recession – They couldn’t pull the extra fiat money out of circulation fast enough and there is still a picture, on the internet, of a man with a wheelbarrow full of German Marks headed out to buy a loaf of bread! We are headed exactly in the same direction but when will the hyper-inflation begin? Several theories out there but I think we’re going to see extreme inflation this year, if not hyper-inflation! We cannot keep creating money out of thin air, trying to bolster the nation’s economy – It is doomed to failure!

But don’t look to either party to correct this mistake – They’re complicit in getting us here! Even if the Democrats are the idiots creating new unfunded entitlements, the Republicans go along with them – With just a little screaming to appease the conservatives! They “go along to get along” – We have the best government money can buy and bought it is! How else do you explain the T.A.R.P. to bail out the banks? How else do you explain bailing out the auto makers and auto makers unions on the backs of the investors in those companies? It was “pay-back” for these corrupt institutions (bankers, auto makers and unions!)!

Of course, this fits President Zero’s plan of “fundamentally transforming the United States”! The question Americans, who voted for this Marxist, forgot to ask was: “Transformed into what?” If this usurper to the White House had answered honestly, how many votes do you think he would have got?

As many know, this was set up for failure in 2000, when Congress repealed the “Banking Act of 1933 (Glass-Steagall) – The GOP was still “in charge” of Congress then and a Republican was in the White House! This stupidity was the beginnings of the “derivatives” and the beginning of the end to honest banking (if there is such a thing!)

"Is there any reason why the American people should be taxed to guarantee the debts of banks, any more than they should be taxed to guarantee the debts of other institutions, including the merchants, the industries, and the mills of the country?"
-- Senator Carter Glass 
(1858-1946) Newspaper publisher, US Senator (D-VA), author of the Banking Act of 1933, U.S. Secretary of the Treasury under President Woodrow Wilson.
 He said this during Senate debate on the Banking Act of 1933 (Glass-Steagall Act) [source: Rixey Smith and Norman Beasley, Carter Glass: A Biography (1939)]

Obviously, in 1933, the Congress didn’t think the taxpayers should guarantee the debts of banks, auto makers, and union retirements but the Republicrats of today do think of us, the taxpayers, as their “cash cow”! How else do they explain bailing out the under funded union retirements? Unions in the private sector make up less than 7% of the private workforce but their underfunded retirement systems were saved with taxpayer money at the detriment of the private investors who were building their retirements through stock dividends and the taxpayer who had nothing to gain in this bailout and everything to lose and lose we did!

I am not saying these 2 factors got us here; obviously, Barney Frank and Chris Dodd’s virtual elimination of the qualifications for home buyers was another big factor and there were smaller factors that brought to the brink but – If we were on the Gold Standard, this could never have happened because there would be no fiat money; they couldn’t print more than our Gold Reserves were worth – That’s the only reason FDR couldn’t bankrupt us in the ‘30’s! He couldn’t authorize fiat money and neither could the Federal Reserve at that time!

Here is another thing to consider about the Gold Standard the government and bankers don’t want you to know: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights." Alan Greenspan (1926- ) Chairman of the Federal Reserve Board of Governors (1987-2006) He made this statement in 1966, and joined this cabal in 1987!

I do not know if the nation will survive the financial tsunami headed our way but, in either case, there are several things we must do to prevent another catastrophe like this:

• Repeal the 1913 Federal Reserve Act – Personally, I think the “national debt” is the debt of the 10 banking families who allowed that money to be printed in the first place!

• Go back to the Gold Standard – Congress must reassume it’s Constitutional duties of standardizing weights & measures and our monetary system! No longer can we allow any unaccountable group or person to dictate our monetary policy!

• Disband both political parties – Our founding fathers warned us against them and their fears came to pass!

• Repeal the 17^th Amendment – A major “check & balance” was compromised when we made the Senate a ‘popularity contest’ – They abdicated their Constitutional mandate of protecting the 10^th Amendment! They must return to protecting their state from an overreaching federal government! We must allow the State Legislatures to approve the Senators offered by the State’s Governor!

• Replace Every Member of Congress – Eliminate their “perks”, their bloated and unearned retirement system, slash their salaries, and eliminate their campaign funds! The House of Representatives is “the House of the People” and it must be returned to that by electing ‘citizen legislators’!

• Repeal the 16^th Amendment – Our founding fathers felt the most important ‘personal property’ was his “hire” – Whether he was an employee, private contractor, or business owner, our founders felt what we earned was ours to keep and do as we saw fit with it! We deserve that consideration again! Let the States raise the funds to run the federal government as it was supposed to do!

• Repeal All Amendments After the 13^th Amendment – With the exception of the 25^th Amendment, there were all States-Rights issues and have been taken care of. The misinterpretation of the 14^th Amendment has caused too many problems already and it was created to protect freed slaves and is moot today! Unless you are a naturalized citizen of the United States, you do not qualify to be a 14^th Amendment U.S. Citizen. Prior to the 14^th Amendment, each of us was a Citizen of whichever State we resided in and, technically, the “United States of America”, by definition, is Washington, D.C., military forts, and arsenals – Period! Yes, it is the responsibility of the federal government to protect our northern and southern borders but it should be up to the individual States as to how many immigrants it can support; not Washington, D.C.! We have seen the folly in that!

It took over 100 years to get to this sorry state of affairs; hopefully, it won’t take us that long to get back to sanity!