Money, Banking and The Federal Reserve (Video)

by The Ludwig von Mises Institute
The Ludwig von Mises Institute

Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salemo, Hans Hoppe and Lew Rockwell, this estraordinary film is the clearest, most compelling explanation ever offered of the Fed and why curbing it must be our first priority.

Alan Greenspan is not, we’re told, happy about this 42 minute blockbuster. Watch it and you’ll understand why. This is economics and history as they are meant to be: fascinating, informative, and motivating. This movie could change America.

You can order the “Money, Banking and The Federal Reserve on DVD at Mises.org

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A Sound Bite: Free Market Economy Has Failed

We have been subjected to the onslaught of this sound bite coming from the top Banksters and Main Stream Media from the beginning of the sub-prime fiasco.  Of course there is only one solution to a failure of a Free Market.  That’s right… more regulation.  More aptly put: Less Freedom and more Government Control.

How many people across the country are now repeating that sound bite?  Many Americans, wanting to demonstrate their knowledge in matters far above their daily life, are using sound bites like this one while repeating the latest propaganda spewing from the bought and paid for Main Stream Media.  Some may even engage in lengthy arguments over this misinformation and denial of obvious truths that have been staring them in the face for many, many decades.

The masses, having been focused on increasing their material wealth and “fun in the sun”,  haven’t had time to educate themselves on these very important issues. They depend on their limited education from government indoctrination centers, commonly referred to as “public education”, and the Main Stream Media for knowledge of the world around them. Imagine how different our reality might be if men and women had taken time after dinner, or right before bed, to read a book on any of these important matters.  In hindsight they might agree that a bit of self education is worth the effort to protect their freedom.

Is the sound bite “Free Market Economy Has Failed” in any way legitimate?

The truth of the matter is that intervention in the market, rather than the market economy itself, was the driving factor behind the bust.

F.A. Hayek won the Nobel Prize for his work showing how the central bank’s intervention into the economy gives rise to the boom-bust cycle, making us feel prosperous until we suffer the inevitable crash. Most Americans know nothing about Hayek’s theory (known as the Austrian theory of the business cycle), and are therefore easy prey for the quacks who blame the market for problems caused by the manipulation of money and credit. The artificial booms the Fed provokes, wrote economist Henry Hazlitt decades ago, must end “in a crisis and a slump, and…worse than the slump itself may be the public delusion that the slump has been caused, not by the previous inflation, but by the inherent defects of ‘capitalism.’”

Although my recently released book, Meltdown explains the process in more detail, an abbreviated version of Austrian business cycle theory might run as follows:

Government-established central banks can artificially lower interest rates by increasing the supply of money (and thus the funds banks have available to lend) through the banking system. This is supposed to stimulate the economy. What it actually does is mislead investors into embarking on an investment boom that the artificially low rates seem to validate but that in fact cannot be sustained under existing economic conditions. Investments that would have correctly been assessed as unprofitable are falsely appraised as profitable, and over time the result is the squandering of countless resources in lines of investment that should never have been begun.

Source: “No, The Free Market Did Not CauseThe Financial Crisis”, by Thomas E. Woods, Jr.

Continued Here.

Will Senate Allow Banksters To Reap More Rewards?

The provision giving judges the power to reduce mortgage principals and interest rates for homeowners in bankruptcy may be stripped from H.R. 1106 by the Senate.  The provision, referred to as “cramdown”, would not give more taxpayer money to the banks.  Instead, the Banksters may be offered “incentive payments” for “voluntarily” lowering interest rates.

From OpenCongress.org:

So far, all the foreclosure prevention plans that rely on voluntary participation from the banks have failed. If cramdown is removed from the current bill, we will be left with another voluntary plan plus some cash bonuses for banks. Homeowners who owe much more than the current value of their house will still not be helped.

I Want My Bailout Money

‘Nuff Said!

Thanks to Phil for the heads up on this video.

Fed Funds and T-Bills Hit 0% Interest

“What is going on? The credit market remains so tight that state and local governments are being forced to pay interest rates as high as 20 percent. Why is the debt of our insolvent federal government so much more desirable that investors are clamoring to buy it when the return is zero or even negative? The U.S. government is the most indebted nation in the world, with an official federal debt topping $10 trillion. Everyone knows that this debt never can or will be paid off with taxpayer dollars, now or in the future. Commentators have been warning for years that the federal debt would soon be so crippling that foreign investors would flee and the interest alone would be more than the taxpayers could pay. Why are investors now rushing in to buy the U.S. government’s exploding debt, even at a 0% return?  Wouldn’t their money be safer and more liquid tucked under the mattress or left in cash in the bank?”

Read the entire article by Ellen Brown Here .

Peter Schiff Debates Mayor of Lansing, Michigan

Here is Peter Schiff in a hot debate with the Mayor of Lansing, Michigan regarding the auto industry bail-out.

Note: in this first part it is stated that the Toyota Camry is the top rated hybrid.

Toyota DOES NOT have the highest rated hybrid. Here are the FACTS:

The 2008 Malibu (2009 ratings are not yet posted) was rated highest in class by the widely-respected J. D. Power & Associates firm. In fact, it defeated the Toyota Camry in that class to win The J. D. Powers 2008 Highest Initial Quality award. The Malibu scored 24 of 25 available points among the five categories surveyed by the Powers firm. The 2008 Toyota Camry received only 19 of the 25 in the same evaluation.

Part One

Part Two

Economic Plight of America

Interesting email from Phil with a very informative link (see below). Let us not forget that Ron Paul, treated with much disrespect from the mainstream media, has been outspoken regarding the economic plight of the U.S. Ron Paul is the only Presidential Candidate that has brought forth a solution instead of a band-aid.

Thanks to Phil for this link.

the London Times – 1865

“If that mischievous financial policy which had its origin in the North American republic during the late war in that country should become indurated down to a fixture, then that Government will furnish its money without cost.

“It will have all the money that is necessary to carry on its trade and commerce.

“It will become prosperous beyond precedent in the history of the civilized nations of the world. The brain and wealth of all countries will go to North America. That Government must be destroyed or it will destroy every monarchy on this globe.”

Find out what the Bankers (with help from politicians) did after the Civil War Here: http://www.mega. nu:8080/ampp/ comingbattle/ cmgbtl.htm

Then the Federal Reserve Act (1913) was the final nail in our coffin. The Federal Reserve is a privately owned Bank ! Those Trillions of National Debt are owed to bankers ! Got any idea what the co-lateral for those Trillions is ?????

“Saving Bankster Bonuses”

An interesting article at UrbanSurvival.com about the Fed Moves over the last week with regard to the “economy.”  And as more and more people come to understand the trouble that lay ahead the “elite” continue to rape the taxpayers without fear of retribution.  Here are a couple of excerpts from the article.  Please click the link below to read the full article and roam the site for more interesting news.

With the interest rate cuts Tuesday the FED has now done 5 actions in ONE week!! UNPRECEDENTED in my memory (which unfortunately is longer than I wish it was)

Tues 3/11: Helicopter drop of $200 Billion Dollars into the banking system Fri 3/14: Helicopter drop of unknown amount of $$ into Bears Stearns via Chase Bank Sun 3/16: Helicopter drop of additional $30 Billion Dollars into Bears Stearns via Chase Bank Sun 3/16: 1/4 point rate cut Tues 3/18: 3/4 point rate cut

And the taxpayers footing the bill:

VOILA … since they did not file bankruptcy, but were instead “sold” for a mere $250 million (1/4 the value of their NYC office building) , the TAXPAYER, via the FED, ends up footing the MULTI BILLIONS DOLLARS in costs and expenses that would otherwise have been paid out of those returned Bonuses!!

In other words … and I am somewhat LIVID on this one: The Taxpayers GAVE those high paid INDIVIDUAL Wall Street Bankers at Bear Stearns a departing PERSONAL GIFT OF SEVERAL BILLION DOLLARS by allowing this deal to be structured as it was!!

 See the entire article HERE.

Economic Collapse

Looking at the landscape – “putting two and two together” – I have made the prediction to several friends that September of this Year ( 2008 ) would tell the story. In anticipation of a “national emergency” that may keep the current administration at the reigns of the U.S. government and the event that certain legislation has been passed into law to pave the way for armed suppression of the American People via martial law I chose the economy and predicted September – 2 months prior to the General Election for Office of the President.

This prediction is now supported by the Global Europe Anticipation Bulletin (available at a cost of $300.00 annually):

“The end of the third quarter of 2008 (thus late September, a mere seven months from now) will be marked by a new tipping point in the unfolding of the global systemic crisis.

“At that time indeed, the cumulated impact of the various sequences of the crisis will reach its maximum strength and affect decisively the very heart of the systems concerned, on the front line of which (is) the United States, epicentre of the current crisis.

“In the United States, this new tipping point will translate into – get this – a collapse of the real economy, (the) final socio-economic stage of the serial bursting of the housing and financial bubbles and of the pursuance of the U.S. dollar fall. The collapse of U.S. real economy means the virtual freeze of the American economic machinery: private and public bankruptcies in large numbers, companies and public services closing down.”

Read the entire article posted at FiveDoves.com

We still have an opportunity to avert or alleviate this coming event. There are many GOP delegates whose votes have been freed up as those candidates have bowed out of the race and endorsed McCain. Those delegates can now vote their conscience. Even though the Mainstream Media is reluctant to report the fact that there are still TWO (2) candidates running in the GOP primary, many of those delegates are aware that they have a choice between the neo-con McCain and the Constitutionalist Ron Paul.

Ron Paul is the only viable candidate and the only candidate that offers any sort of plan to deal with the coming Economic Collapse. We still have a great work ahead of us if we are to avert or alleviate the troubles we face. In the hopes that the economy will hold tough until after the General Election – let us continue the work.

Ron Paul: Right on the “Money”

We have all seen the disrespect Ron Paul has received. The snickers of other candidates and way out of line comments regarding Congressman Pauls Foreign Policy Position during debates is most disturbing. Even worse is the Media’s ridicule, their misreporting of facts and lack of true in depth coverage … or even coverage that is anything slightly close to what the other candidates receive.

But there is a darker side to all of this. All of the other candidates and the Media are either keeping a secret from you or they are totally in the dark about the serious trouble the U.S. economy is in.

In the previous post it is mentioned that candidates will spend more regardless of the huge deficit the U.S. now has. The Democratic side, Hillary in particular, wants to initiate all sorts of new socialistic programs which is gathering the vote of the poor who may not be aware that they will only be hurt immensely if they dare to ask the government for anything more. The Republicans are not all that conservative either it seems. The War and military build up, programs that will shred your privacy and steal your liberty are high on their agenda. And let’s not forget that it will be business as usual with both parties: Foreign Aid will continue, the Welfare state will continue and you will continue to pay for all of it.

But Ron Paul is Right on the “Money”. Ron Paul is speaking out and warning the American People about the predicament they are in and giving them the only options they have. Ron Paul is not only the only candidate that has offered a “fix” but he is the only candidate that seems to have a clue. He is the only candidate that is willing to offer the hard medicine needed to undo the damage that has been caused by a Congress that has over stepped the bounds of their authority.

He has brought up the fact that over 70 million baby boomers will soon be added to the Social Security Retirement system, that there is no money to fund entitlement programs, that inflation is actually much more than actually reported and that these trends will continue as politicians feed voters their “feel good” messages instead of speaking out about the issue and of the undeniable fact that if hard choices are not made now the U.S. economy will simply collapse.

When Ron Paul speaks of the economy, currency devaluation, and overextending obligations he speaks of a priority issue for this nation. This nation cannot and will not stand if this is not brought to the forefront and dealt with. We deserve, at the very least, an honest and open discussion of this issue by all the candidates. If they won’t discuss it and bring serious options to the table – they don’t deserve your vote.

Again, in the previous post you heard Comptroller General David Walker speak regarding the trouble the economy faces. Ron Paul is not a “lone wolf” when it comes to this issue. And you can only agree that Congressman Paul’s assessment of the economic situation is highly accurate (right on the “money”) in light of what David Walker states.

David Walker’s tune isn’t changing any time too soon. Here he is again, speaking of the looming fiscal crisis the U.S. faces.

U.S. Headed for Fiscal Crisis?

60 Minutes Summary by Steve Kroft

And Ron Paul on the Korelin Economics Report: The Truth about the Economy: Total Collapse

The economic troubles faced by the U.S. can be dealt with. The U.S. must get back on track with the Constitution and steer away from Globalism and those politicians that are friends of it. The best medicine for this looming crisis is a vote for Congressman Ron Paul.

Still not convinced?

The Inevitable Collapse of the Dollar:

And “The Ultimate Dollar Collapse”