Skip to comments.Push the Fed Over the Cliff
Posted on 12/03/2012 5:17:50 AM PST by Kaslin
Stop worrying about the fiscal cliff. Spending cuts would feel therapeutic after watching Standard & Poor's and Egan-Jones downgrade our credit rating and seeing President Obama add $6 trillion to the national debt. The way to avert another recession and massive inflation is to eliminate the unconstitutional Federal Reserve.
There are two ways for politicians to pay for their spending. They can be transparent and raise taxes extremely high across all income levels. (This is not happening because politicians know Americans would riot.) Or, they can be sneaky and monetize the debt, which means allowing the Federal Reserve to print money and inflate the currency.
As former Rep. Ron Paul points out in his book End the Fed, the Fed has one power that is unique to it alone: it enables the creation of money out of thin air. through techniques such as open-market operations, changing reserve ratios, and manipulating interest rates, operations that all result in money creation.
Think of our economy as ill with a superbug; the Federal Reserve is the cause of this virus and we must eliminate it before it wipes out Americas prosperity.
Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital Inc. told CNBC this month: Ben Bernanke is a much bigger threat to the U.S. economy than the fiscal cliff. In fact, if it wasnt for his accommodation, all the QEs, we wouldnt have to go over the fiscal cliff. In fact, ultimately because of what the Fed has done, were gonna have to go over a much bigger cliff, as part of the solution to solve the problems that the Fed helped create by allowing the government to get so big. But I think if we avoid this cliffwhich is a mistake, we actually need a bigger cliff that has a lot more government spending cutsbut if we get a deal, which I think likely we will do because politicians want to pretend that they saved us from this phony crisis so they set us up for a bigger one it means that trillion-dollar-plus deficits will perpetuate and these big deficits are what is undermining the dollar because the Fed has to print money to finance them all the fiscal cliff means is that we have to start paying for all this government so if the politicians want to spare us from this fiscal cliff, then cut government spending so we dont have to pay for it.
Founders like Thomas Jefferson were concerned that central control over the money supply would lead to tyranny. This is why, early on, the Constitution explicitly banned paper money and only allowed gold and silver coinage.
The Federal Reserve itself is unconstitutional. Paul writes: The Constitution is silent on the issue of a central bank, but for anyone who cares about its intent, the Tenth Amendment is quite clear. If a power is not delegated to the United States by the Constitution, it doesnt exist. There is no mention whatsoever of a central bank being authorized. Even if a central bank were permissible, it could not legally repeal the legal tender mandate for gold and silver coins.
Politicians try to keep big banks and businesspeople happy in the short-term by allowing the Federal Reserve to keep interest rates artificially low. The problem is that these low rates trick investors into taking titanic risks and making poor long-term investments.
Congress is not holding the Federal Reserve accountable. Politicians keep spending money to appease private interest groups and win votes. So, we must hold Congress accountable and demand that it eliminate the Federal Reserve. Our lifestyle is on the line; high inflation will make it impossible to enjoy life as we do now with simple pleasures like dinners out, high-tech toys and annual vacations.
Are you a small businessperson or an entrepreneur? Become a real-life John Galt. Publicly demand that Congress boot the Fed. There is no reason why you should shoulder the burden of government spending through higher payroll taxes and Obamacare.
Hold your head high. It is honorable, not greedy, to make a profit and employ people so that they can support themselves and their families via their own labor and live quality lives.
Are you a consumer? You also must speak up. You should not have to pay above-market prices for inferior products, services and healthcare. You deserve sound money and the freedom to buy the best quality that you can afford.
There is no need to stand up to the government alone. Form or join a group of like-minded citizens. For example, the Liberty Business Bureau is a non-profit organization that helps support consumers and businesses practicing free market principleseffectively America's first free market trade association.
We all need to pressure Congress to audit the Fed. Cosmic public outrage is apparently the motivation politicians need to eliminate this unconstitutional agency. If we unite now, we will save our currency and our freedom by pushing this monster over the cliff.
There is a fiscal cliff that we are heading toward every day that the federal government spends at these levels. Tax increases may only accelerate the trip.
-——which means allowing the Federal Reserve to print money and inflate the currency.———
Years ago, when princes were schooled to be kings, they had some courses in economics. The statement above was the basis for the course Inflation and Debt Control 101.
It is the tried and true method of kings and governments since literally the beginning of money. It is not really sneaky, it has been obvious for some time. Except, there was a problem with wages. Wages remained stable because of the unemployment.
The unions however are now fully on board demanding wage increases. When they succeed and wages begin to rise from the position of stability, the inflationary process will be humming along like a well tended Porsche engine
Difficult as it may seem...a mountain the top cannot be seen due the fog, the clouds, the height of the mountain it must be climbed, and conquered. We have to establish beyond that an activist judge can dispute that the Constitution IS the basic law of this land, and therefore all Leftist adjustments to the Constitution are illegal as they stand today.
The Left will fight tooth, and nail, as it’s been the Left’s perceived cloak of ambiguity that has allowed them to parse the law (The Constitution), alter the established, and further their goals. IE; The very abused Commerce Clause as one example.
I’m not a lawyer, but it would seem to be nothing that is difficult means that it is impossible.
The impact is going to be epic.
0bama and his ilk have very different plans for America after the crash than you or I would.
Great thread, thanks!
For more than a thousand years, China had an nationwide integrated system that recognized that all its institutions, including its economy, had a natural, four cycle period, similar to the annual seasons.
Each new emperor was raised to personify his season, and if he followed “the program”, the bureaucracy would obey him flawlessly. But if he issued an order that went against the idea, the results would not be satisfactory. Everything would go wrong, or be made to go wrong.
The cycle began with a “builder emperor”, who would recreate China from scratch. His successor was the “maintenance emperor”, who would take the newly built China and get it running smoothly. The third emperor was the “decadent emperor”, who let everything fall apart. And finally the fourth was the “destroyer emperor”, who would tear down all the old and antiquated systems (and usually kill several million Chinese in the process), so that the new cycle could begin.
In any event, the Chinese recognized that it was necessary to have these cycles to keep the system as a whole healthy.
Yet compare that with the US economy and government today.
They adamantly refuse to accept the idea that our government and our economy are cyclical. Instead it is always “larger, more, bigger, constant growth.”
The end result is that our government, and our economy, are terribly overgrown and need serious pruning. By cheating, they have evaded several recessions, and maybe even a cyclical depression. But this just means that when the depression does come, it is going to be a monster.
And how overlarge is our government? 30%? 50%? 75%?
That’s the thing about natural cycles. Ignore them at your peril.
Defense cuts comprise about 1/10th of the scheduled spending cuts.
It might surprise you to find out that those so called 'cuts' are really increases when they use the 'Base Line Budgeting' algorithm. Cuts in Washington are when you get less than you ask for not less than you already have.
Things need not occur in great big destructive cycles, if the leadership has the wisdom to accept the fact that small cycles will occur and that trying to stop them is almost guaranteed to make things worse. Unfortunately, it's probably been about 200 years since this country has had truly wise leadership.
Thank you for the information.