Get Educated

The Creature from Jekyll Island

It is my understanding that people make reasonable decisions based on the information they get. The problem is the information they get is not always truthful. If you want to get super-philosophical, then nobody ever really knows the truth. The only thing I can trust is information that is at least honest.

For example, people who talk about big government always deal with half truths. They talk about the benefit while downplaying the negative. When the Federal Reserve System was enacted, it was promoted as a way to take power away from the money trust, regulate interest rates and make sure that the country never ran out of money. What they didn’t tell the people was that the system was designed precisely by the money trust (J.P. Morgan, Rockefeller, Kuhn Loeb, and the Warburgs) in secrecy. The System was designed to artificially lower interest rates to encourage loans and expand the credit and money supply, which caused many bad investments to be made. When these loans were recalled, they were defaulted, and the recent boom and bust cycle was created. After the crash of ’29, the banks were cleaned out of their cash and the Federal Reserve didn’t supply them with any, which was one of the “reasons” it was created in the first place. (See America’s Great Depression by Murray Rothbard and The Creature from Jekyll Island by G. Edward Griffin)

Austrian Economics, another term for free market or laissez faire, makes sense because it is honest about its’ faults and fairly criticizes and compares the alternative, which is socialism or communism. If people were to honestly look at the material, I believe they would not be afraid to embrace it and at least 75% (obviously a guess, basically I am saying an overwhelming majority) of Americans would be in sync on the basic fundamentals that our founding fathers provided for us, at least I would hope so. Opposition, of course, would come from beneficiaries of the current system.

For Liberty of these States United,

Aaron Burr is my Hero

Clueless Federal Reserve Inspector General

I’m not typically a fan of The Huffington Post, but they offered a great article recently detailing an exchange between Rep. Alan Grayson (D-Fla.) and inspector general Elizabeth A. Coleman. (See video below)

Coleman could not tell Grayson what kind of losses the Fed has so far suffered on its $2 trillion portfolio, which has greatly expanded since September.

She appeared unaware that the Fed engages in trillions of dollars in off-balance-sheet exchanges.

She is not investigating the role of the Fed in allowing the collapse of Lehman Brothers.

She did not know where the Fed has invested its $2 trillion on the liability side of the balance sheet. “I do not know. We have not looked at that specific area at this particular point on,” she said.

This exchange highlights just how little anyone knows about what’s going on at the Federal Reserve. Since Congress delegated their Constitutional obligations to “coin Money, regulate the Value thereof, and of foreign Coin” to the Federal Reserve in 1913, the US dollar has been devalued 95%.

The Federal Reserve is immune from government audits, specifically, they are allowed to make make transactions between foreign governments and banks without any approval or oversight from the federal government. If the State Department did this, they would be considered a rogue agency and would be taken down by the Department of Justice. If a civilian did this, he would be tried for treason under the Logan Act. Yet, the Federal Reserve continues these policies without fear of either consequence.

There is a bill in the House that would allow for a full government audit into the practices of the Federal Reserve. H.R 1207 currently has 149 cosponsors and will most likely get a hearing within the House Financial Service Committee in the very near future.