After 100 Years Of Failure, It's Time To End The Fed!

The Market Oracle, UK ^ | 12/15/2013 | Dr. Ron Paul

[PGR88]

Replacing them with what, bitcoins? Bank notes issued by banks? Barter?

How about gold and silver?

A government that can not steal your wages and savings through inflation and can not run constant deficits with FED debt monetization must be a limited government.

[narses]

Gold. So your money this year would have lost nearly half it’s buying power. No thanks.

[narses]

For the 135 years before the Federal Reserve, inflation was NEGATIVE 40% for the entire time.

Right. Deflation was a destructive force.

Since 1913 inflation has gone up 2300%.

And you want to go back to the poverty of 1913? Why?

[Errant]

Is The Perfect Storm Coming For Gold?

" Due to western central bank price manipulation, the mining sector is in critical condition, the supply line is all but halted, and the physical supply is being swallowed up by Asia. The last shoe to drop is for major mining companies to start closing down production at major mines. Though this would be perceived as the end for gold, speculators will be happy to know that this would be the beginning of the biggest Fed induced bubble in history! But unlike previous Fed bubbles where they support the price increase, the gold bubble will be a result of western central planners mis-managing the gold price for the past 3 decades and finally losing control."

[Leaning Right]

Paul is the only one that appears to be not lying?

Excellent observation. I don't agree with everything Ron Paul says, but he is a straightforward person.

[GGpaX4DumpedTea]

“They are a problem, but after decades, they have to be disbanded slowly”

Not so...the Fed is an evil piece of American history, and needs to be castrated. A ‘slow disbandenment’ will only entrench them deeper into the quagmire they have created.

[narses]

Paul is a twisted nutcase.

[Errant]

Watch the dollar index. When it drops below 80, the central banks become desperate to raise it back above that "magic number". One tool they employ is to sell gold futures. One day soon that tool will not going to work any longer, IMO.

[Ag88]

A basket of hard commodities including gold, maybe? Or a percentage mix of hard assets & debt?

[narses]

I am OK with dollars, backed by the dent taken on by the American people and supported by a military without equal anywhere. It has served me and mine well.

[MichaelCorleone]

“By law they are supposed to focus on unemployment, keeping the dollar stable and interest rates low.”

I’m pretty sure the Fed has the responsibility to maintain a stable/strong dollar, and to keep inflation low (not interest rates low).

Everything else is Congress’ responsibility - although they refuse to accept that responsibiltiy.

[Chode]

by the federal government... if we're gonna use fiat money, at least we shouldn't have to BORROW IT!!!

[narses]

dent = debt

[Jack Hydrazine]

Everyone has seen the 100-year US Dollar destruction chart; so here is the 200-year... a century without The Fed and a century with... which would you prefer?

Via Ralph Dillon of Global Financial Data,

Newton’s 3rd law states: To every action there is always an equal and opposite reaction. Sounds pretty simple right?

Except in Government, where for every action, the reaction seems to produce catastrophic consequences for such action. Yet inexplicably, the answer these days to everything seems to be more Government intervention and meddling. You would think that at this point we would have learned from our prior mistakes. Yet the meddling goes on and on and on….because it works so well.

Have you ever considered the true cost of all of this intervention? Think about it. Since the creation of the Federal Reserve in 1913, we have been in perpetual warfare, we introduced the New Deal which birthed Government programs, we eliminated the gold standard, we flooded the market with massive credit expansion, we accumulated massive amounts of debt and have now seen the Government take over 20% of our economy through healthcare. As if all of the prior interventions were not enough, in just the last 5 years, we have had shovel ready, bank bailouts, trillion dollar stimulus, QE 1,2,3,4, operation twist, unemployment benefits extended, car bailouts and crony capitalism that threw good money after bad. What we have gotten is more of the same. More debt, more political posturing and the complete destruction of the dollar and the purchasing power of it. With it, no one is accountable. Not the Government, not the banks, not the private companies but the citizens whose burden it has become to fund all of this intervention.

With the backdrop of other Governement ventures like the USPS and Social Security Administration, what can possibly go wrong with our latest intervention Obamacare? Whether you are for or against it, you have to recognize that this is and will be the mother of all Government interventions. With a horrific rollout, low enthusiasm and a general public that is either unaware or just ignorant to what is truly coming down the pipe, we can only hope that this time it will be different. But consider, that for every word that defines Obamacare, there are 30 more words that enforce it. With 109 new regulations and counting, you have to wonder if this monstrosity of intervention will finally be the straw that breaks the proverbial camel’s back. It surely has the making for it because we have never seen anything like it.

Cost since 1913? Well, the dollar has lost nearly 90% of its value and the purchasing power of that dollar has been eroded considerably.

Below is a chart that demonstrates the destructive quality of Government intervention to 1819:



Link.

[DannyTN]

Read the law!!! Unemployment is listed first.

[Amendment10]

The fed is not federal or ever was... still isn’t...

I agree with you. But I thought it interesting that the Fed also closed when the government closed awhile back.

[Leaning Right]

Paul is a twisted nutcase.

In some respects, yes. But in some respects Einstein was also a twisted nutcase.

Here's my fearless prediction. In one hundred years no honest historian will say "They should have listened more to John Boehner." But historians will say "They should have listened more to Ron Paul."

[DannyTN]

The fed errs on the side of low inflation rather than deflation because deflation causes depressions. 100 years of consistent low inflation makes a scary looking chart. But it's meaningless to anyone who isn't hoarding cash in their mattress for 100 years.

What is important is the stability of the dollar year to year. And the FED has excelled at maintaining that stability.

Swings of 20% deflation in a year like we had during the gold standard causes depressions. Why invest anything if you can just hold cash and increase your purchasing power due to deflation.

Keep the FED. fire the rest.

And no the Rothchildes don't own the FED. That is easily debunked.

Debunking the Federal Reserve Myths

[narses]

So we need to retreat from the world stage, retreat from the modern banking system and embrace a whackjob racist? Sorry, no sale.

[DannyTN]

Overlay the depressions on that chart and then choose.
And I don’t think the chart is accurate either. It does show some huge year to year swings, but those swings occurred more often than that chart shows.