A Federal Reserve Primer

Economic Collapse Eerily Predicted

People have warned us for many years about the inevitable economic collapse of the United States. Our leaders have failed to listen to the top economists then, and are still not accepting the recommendations by the top US economists regarding the "bailout" plan. Many economists are skeptical of the bailout plan, with one quoted as saying "the plan is being marketed under false pretenses."

I'm at the very least glad that Congress didn't automatically rush to pass this legislation, like they have with other pieces of legislation (i.e., the Patriot Act). As of now, the legislation doesn't seem to be sitting well with Republican members of Congress, saying "that the plan would be too costly for taxpayers and would be an unacceptable federal intrusion into private business." Well, no kidding!

However, like it always has been in Washington, nobody wants to be held responsible or proven wrong, so they will likely pass this piece of legislation. No matter what Congress decides, the inevitable is going to happen. Be prepared for a decade of recession, homelessness, unemployment, food shortages, civil unrest, and yes, Martial Law.

The Immoral Federal Reserve

Here's a great audio clip by Llewellyn H. Rockwell, Jr., a proponent of Austrian School of Economics, describing how the Federal Reserve is simply a large counterfeiting entity.



I highly recommend that you go take a look at Mises.org and read about Austrian Economics.

Ron Paul: Time Is Running Out

Dear Friends,

Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike.

The events of the past week are no exception.

The bailout package that is about to be rammed down Congress' throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder. Two weeks ago, financial analyst Jim Rogers said the bailout of Fannie Mae and Freddie Mac made America more communist than China! "This is welfare for the rich," he said. "This is socialism for the rich. It's bailing out the financiers, the banks, the Wall Streeters."

That describes the current bailout package to a T. And we're being told it's unavoidable.

The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences - predictable, that is, to those who understand sound, Austrian economics - are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess!

• The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. That means $700 billion is only the very beginning of what will hit us.

• Financial institutions are "designated as financial agents of the Government." This is the New Deal to end all New Deals.

• Then there's this: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process.

There goes your country.

Even some so-called free-market economists are calling all this "sadly necessary." Sad, yes. Necessary? Don't make me laugh.

Our one-party system is complicit in yet another crime against the American people. The two major party candidates for president themselves initially indicated their strong support for bailouts of this kind - another example of the big choice we're supposedly presented with this November: yes or yes. Now, with a backlash brewing, they're not quite sure what their views are. A sad display, really.

Although the present bailout package is almost certainly not the end of the political atrocities we'll witness in connection with the crisis, time is short. Congress may vote as soon as tomorrow. With a Rasmussen poll finding support for the bailout at an anemic seven percent, some members of Congress are afraid to vote for it. Call them! Let them hear from you! Tell them you will never vote for anyone who supports this atrocity.

The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government? Do we care?

When the chips are down, will we stand up and fight, even if it means standing up against every stripe of fashionable opinion in politics and the media?

Times like these have a way of telling us what kind of a people we are, and what kind of country we shall be.

In liberty,

Ron Paul

The Biggest Robbery In U.S. History

The bailout. Yes, that is how the corporate media describes the biggest grab of power in recent history by the US Treasury Department and the private central bank The Federal Reserve. This really makes me angry that the American people have fallen victim to the greed and illicit dealings of Wall Street. We have been sold to the highest bidder! Treasury Secretary Henry Paulson, former CEO of Goldman Sachs, is now the owner of America. His co-conspirators, President George W. Bush, Vice President Dick Cheney, and Fed Chair Ben Bernanke, all have a stake in the new business of total enslavement of Americans.

The total lack of knowledge the general public and most members of Congress have regarding how the Federal Reserve works is despicable. Thank goodness for Ron Paul, probably the only one in Congress competent enough to understand what's going on. The Federal Reserve prints paper money and tells us that it is worth like gold. Not only are they allowed to print money, but they auction the printed money to banks with interest on each note. Then how can the banks pay the interest? Of course with more printed money with the same interest. It's a perpetual cycle of profit for the Federal Reserve: a genius move!

The more money pumped into the markets by the Fed, the more the dollar is devalued. The definition of inflation is an increase in the supply of money. The consequence of inflation is prices of goods and services increase. The act of printing money is an indirect form of taxation by the Fed. The Constitution of the United States grants only Congress the authority to levy taxes.

How can we afford two wars? How can we afford bailouts? How can we afford a several hundred billion dollar foreign aid policy? How can we afford entitlement programs?

Just print the money.

Imagine if the printers run out of ink. Then all of a sudden we have to manage our money as a country more responsibly. This economic tsunami is unfortunately the wake-up call Americans need to move to a more sound currency, one that is backed by gold and silver as stated in the Constitution.