Absolutely - besides being entirely UnConstitutional, they have manipulated and manufactured recessions and depressions to keep the status quo. Bank of Scotland – $181 billion They include helping J.P. Morgan Chase acquire Bear Stearns, lowering the discount rate and offering short-term loans to about 20 investment banks--and they came only days after the government said it would inject $200 billion into the financial system. They just assume that we have the best system in the entire world. JP Morgan Chase – $391 billion #3 The Federal Reserve Is A Perpetual Debt Machine. Now, that is what Henry Ford wants to prevent. The only reason it's still here is that legislators can't agree to abolish it. Men like Thomas Edison and Henry Ford could not understand why we would adopt such a foolish system. Milton Friedman was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of … The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913. So why is the Federal Reserve doing it? #9 The Federal Reserve Is Paying Banks Not To Lend Money. The dozen Federal Reserve Banks are privately owned. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost. As an alternative, Allison argues that if we allow the market to regulate itself, it would be preferable to the Federal Reserve harming the stability of the financial system. However, there are varying questions that must be asked and answered to fully understand why the United States needs to end the Federal Reserve … #4 The Federal Reserve Is A Centrally-Planned Financial System That Is The Antithesis Of What A Free Market System Should Be. So the big banks can just send their cash to the Fed and watch the money come rolling in risk-free. I don’t think it’s gonna drive the economy too far from its full employment path, though.”. #7 The Federal Reserve Greatly Favors The “Too Big To Fail” Banks. Why the Federal Reserve System should be Eliminated There are many reasons why the Federal Reserve System should be eliminated because it manipulates the United States economy. I’ve got to get home to watch American Idol.”. Sadly, this is the way it works all over the globe today. The responses will be something like this…, “Duh – I don’t know. 13 Abolish the Federal Reserve System 14 Introduce Free Banking 15 Reduce the size and scope of the Government 16 Restore National Independence 17 calculate the cost of doing this. And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. WASHINGTON--The Federal Reserve recently announced new measures to tackle the current financial crisis. ( Log Out /  These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. The following comes from factcheck.org…. The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system. The intent of the bankers was to trap the U.S. government in an endless debt spiral from which it could never possibly escape. #2 The Federal Reserve Is Systematically Destroying The Value Of The U.S. Dollar. 11 Reasons Why The Federal Reserve Should Be Abolished By Michael Snyder, on May 6th, 2013 The Federal ReserveIf the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately. The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. Survey after survey has shown that the American people care about the economy more than anything else. The original mandate of the Fed, which formed in 1913, was to maximize employment, stabilize prices, and moderate long-term interest rates. Global markets would also need some sort of economic direction from the U.S. The following are 11 reasons why the Federal Reserve should be abolished…, #1 The Greatest Period Of Economic Growth In The History Of The United States Happened When There Was No Central Bank, Did you know that the greatest period of economic growth in U.S. history was between the Civil War and 1913? But that never actually happens, does it? So how can the Federal Reserve get away with claiming that we are in a “low inflation” environment? 1. why does the government allow this PRIVATE body to print money, then lend it to the government who have to pay it back at interest? ( Log Out /  People have been hacking into it and it compromises the safety of the millions of Americans in the USA. By Rep. Ron Paul, MD America's Friend: The Honorable Congressman Ron Paul Mr. Speaker, I rise to introduce legislation to restore financial stability to … Millions of Americans assume the Fed acts in the nation's best interest and that our nation has always had a Fed. According to USA Today, water bills have actually tripled over the past 12 years in some areas of the country. If you will notice, a number of the banks listed above are foreign banks. I refer to the Federal Reserve Board. “I would get rid of the Federal Reserve because the volatility in the economy is primarily caused by the Fed,” Allison wrote in 2014 for the Cato Journal. Isn’t that the kind of thing they do in communist China? Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. The Federal Reserve system was designed to be a trap. Dexia – $159 billion Unfortunately, today most Americans don’t even understand how the system works. #8 The Federal Reserve Gives Secret Bailouts To Their Friends. How is printing money without any backing a good idea? There are many, many more examples that could be listed, but hopefully you get the point. In fact, the value of the U.S. dollar has fallen by 83 percent since 1970. The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled. Len, Our nations undoing has came about by thumbing our nose at the Founders and going against two of the most important issues they believed in! That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt. It's insane to think that an institute like this has so much power over the American people. Every four years, presidential candidates argue about who will be best at managing the economy, but the truth is that it is the Fed that manages our economy. But most Americans don’t understand this. The following is an extended excerpt from an article that I published previously…. Since the Federal Reserve came into existence in 1913, the dollar has lost over 95 percent of its value. But over time, it really adds up. And of course the Federal Reserve even admits that it helped create the Great Depression of the 1930s. Bear Sterns – $853 billion However, its open-market transactions have never been audited. If not, equally fine. Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve. And even the Federal Reserve itself has argued that it is “not an agency” of the federal government in court. I think that most Americans would be horrified to learn that the creation of more money in our system also involves the creation of more debt. As such, the Federal Reserve should be promptly abolished. If you don’t believe this, just go out on the street and ask regular people where money comes from. Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U.S. banks park at the Fed. The Federal Reserve systematically penalizes those that try to save their money. The bankers don't want to loosed the interest on treasury bonds they accrue from the bonds they purchase with federal reserve notes, that they create out of nothing. 1. The Fed manipulates prices, distorts the economy, and makes decisions by looking at … #3 The Federal Reserve Is A Perpetual Debt Machine. For example, did you know that the Federal Reserve made 16 trillion dollars in secret loans to their friends during the last financial crisis? But the central bank faces a problem. We just need to get people educated. In 2005, Bernanke said that we shouldn’t worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to “full employment”…. Yes, yes, we have heard it all before: End the Fed! But the Fed has decided to pay banks not to risk their money. We just need to get people educated. Today’s dollar is worth less than a nickel compared to the pre-1913 dollar. Nobel laureate economist Milton Friedman and his fellow monetarist Anna Schwartz criticized the Fed's response to the Wall Street Crash of 1929 arguing that it greatly exacerbated the Great Depression. But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. And now it is happening again. We are told that the “independence” of the Federal Reserve is absolutely critical, but don’t the American people deserve to have a say in the running of the economy? #4 The Federal Reserve Is A Centrally-Planned Financial System That Is The Antithesis Of What A Free Market System Should Be…. But despite a track record of failure that would make the Chicago Cubs look like a roaring success, Barack Obama actually decided to nominate Ben Bernanke for a second term as the Chairman of the Federal Reserve. However, the Federal Reserve’s newly adopted mandate […] That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt. If they can make a profit, fine. “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”. When will the American people decide that they have had enough? The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913. Goldman Sachs – $814 billion The Federal Reserve has had superficial audits, so it can genuinely claim to have been audited. The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. The following are 11 reasons why the Federal Reserve should be abolished… “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates? I’ve got to get home to watch American Idol.”. The Fed manages the dollar — and as the world’s leading currency, a void left by a Fed-less America could throw those markets into chaos with uncertainty about who’s managing U.S. interest rates and the American economy. 3. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. While they hand out trillions to their buddies the poor gets to see their dollar lose value. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing. Absolutely - besides being entirely UnConstitutional, they have manipulated and manufactured recessions and depressions to keep the status quo. By abolishing the FED, we would not pay interest on Federal Reserve Notes. . I wish it were possible to obtain a single amendment to our Constitution. Change ). Our system is broken. By dramatically distorting interest rates and financial behavior, the Federal Reserve creates economic bubbles and the corresponding economic busts. The Federal Reserve is how the government retains a monopoly over the economy. Should we abolish the Federal Reserve? If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately. And the creators of the Federal Reserve understood this as well. During the 1970s, the Federal Reserve had ‘go-stop’ policies, in which monetary policy quickly swung from ease to tightness and back again. Why do we need someone to tell us what interest rates are going to be? 100 Words On: Why the Federal Reserve Must Be Abolished By Len Penzo The central bank is an institution of the most deadly hostility existing … Inflation is a tax, and the value of each one of our dollars goes down a little bit more every single day. I agree that the Federal Reserve is the main source of income inequality and should be abolished. The intent of the bankers was to trap the U.S. government in an endless debt spiral from which it could never possibly escape. The Federal Reserve Board was created to control, regulate and stabilize credit in the interest of all people. In fact, neither is true. The element that makes the bond good makes the bill good. Why do we need someone to centrally-plan our financial system? And guess what? The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) has faced various criticisms since its inception. It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people. Bush and Obama's top down Wall Street bank bailout, at the expense of Main Street, is a good example of why Rothschild's Federal Reserve must be audited and eventually abolished… The other seeks to completely abolish the Internal Revenue Service. In fact, most Americans don’t even understand where money comes from. . The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled. As the chart below demonstrates, the banks have taken great advantage of this tremendous deal…, #10 The Federal Reserve Has An Astounding Track Record Of Failure. Yes, the federal reserve should be abolished. The Fed creates our “booms” and our “busts”, and they have done an absolutely miserable job of managing our economy. Merrill Lynch – $1.949 trillion Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates? Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”. . If you don’t believe this, just go out on the street and ask regular people where money comes from. The federal reserve should not have been able to stay open this long. They just assume that we have the best system in the entire world. The following are 11 reasons why the Federal Reserve should be abolished…, #1 The Greatest Period Of Economic Growth In The History Of The United States Happened When There Was No Central Bank, Did you know that the greatest period of economic growth in U.S. history was between the Civil War and 1913? Back in 1970, the five largest U.S. banks held 17 percent of all U.S. banking industry assets. As such, the Federal Reserve should be promptly abolished. It's insane to think that an institute like this has so much power over the American people. quite simply, the federal reserve is a con. In fact, all 187 nations that belong to the IMF have a central bank. We just need to get people educated. ( Log Out /  “ Now if we went back on the gold standard and we adhered to the actual structure of the gold standard as it exists let’s say, prior to 1913, we’d be fine. Well, what Ben Bernanke never tells you is that the way that the government calculates inflation has changed more than 20 times since 1978. The economy would expand, people would earn more, taxes would reduce, social services improve, an increase in technological inovation and life expectancy, for several generations. No Comments. As you possibly can they why the federal reserve should be abolished assume that we have become so accustomed central. Gigantic financial power in all the world the privately owned banks that derives their... 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