The Federal Reserve has been around for just over a hundred years, and it has done an absolutely abysmal job for the American people. We are in the longest period of economic stagnation in our history. Wealth inequality in America is at its worst in our history. Trillions of dollars have been drained from the working and middle class citizens, including pension funds. Our access to higher education has been burdened with unbearable debt. Our infrastructure is crumbling and our very health is actually declining. This is all related to our national monetary policy in the end.
Here are some compelling reasons we should demand that our government relook at its arrangement with a private corporation (The FED) to set monetary policy.
#1 We like to think that we have a government “of the people, by the people, for the people”, but the truth is that an unelected, unaccountable group of central planners( The Fed) has far more power over our economy than anyone else in our society does.
#2 The Federal Reserve is totally unaccountable to the American people and is actually “independent” of the government. In fact, the Federal Reserve has argued vehemently in federal court that it is “not an agency”of the federal government and therefore not subject to the Freedom of Information Act.
#3 100% of the shareholders of the Federal Reserve are private banks. The U.S. government owns zero shares.
#4 The greatest period of economic growth in U.S. history was when there was no central bank.
#5 The Federal Reserve was designed to be a perpetual debt machine. The bankers that designed it intended to trap the U.S. government in a perpetual debt spiral from which it could never possibly escape. Since the Federal Reserve was established 100 years ago, the U.S. national debt has gotten more than 5000 times larger.
#6 A permanent federal income tax was established the exact same year that the Federal Reserve was created. This was not a coincidence. In order to pay for all of the government debt that the Federal Reserve would create, a federal income tax was necessary. The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers. The period prior to 1913 (when there was no income tax) was the greatest period of economic growth in U.S. history.
#7 From the time that the Federal Reserve was created until now, the U.S. dollar has lost 98 percent of its value.
#8 In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent. In the century since the Federal Reserve was created, the average annual rate of inflation has been about 3.5 percent.
#9 Since the Federal Reserve was created, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.
#10 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks during the last financial crisis. The following is a list of loan recipients that was taken directly from page 131 of the report. It is important to note how many of those loans of our tax dollars went to foreign banks and over $2 trillion went to “unnamed borrowers”.
Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion
#11 Most of the new money created by quantitative easing has ended up in the hands of the very wealthy. According to a prominent Federal Reserve insider, quantitative easing has been one giant “subsidy” for Wall Street banks.
#12 The Federal Reserve is supposed to be able to guide the nation toward “full employment”, but the reality of the matter is that an all-time record 102 million working age Americans do not have a job right now. That number has risen by about 27 million since the year 2000.
#13 The Federal Reserve is supposed to look out for the health of all U.S. banks, but the truth is that they only seem to be concerned about the big ones. In 1985, there were more than 18,000 banks in the United States. Today, there are only6,891 left. The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten37 percent larger over the past five years.
#14 There has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.
#15 The United States now has the largest national debt in the history of the world, and we are stealing roughly 100 million dollars from our children and our grandchildren every single hour of every single day in a desperate attempt to keep the debt spiral going.
And this is, in a nutshell, the performance record of the Fed. These are facts, not opinions. The truth, not propaganda. We are aware of what Thomas Jefferson said about bankers and we all know what happened to JFK when he suggested the US Treasury should issue money and NOT the Fed. However, the best quote about the Fed comes from Thomas Edison when he said:
“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. Now, that is what Henry Ford wants to prevent. 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. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost. But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.”
We know most people’s eyes glaze over when you talk monetary policy and certainly, with a few exceptions, our CONgress has no clue either. However if we fail to simply demand accountability from the FED and that means audit, and we fail to demand that money needs to flow to people and infrastructure projects, cities, and schools instead of banks during this next election cycle, then we might as well place our own shackles on ourselves.