Few things make me angrier than being cheated or deceived. And, I believe we are being deceived by our government and cheated by the special interests that corrupt our officials. Normally, I avoid political posts, but the bankers and other special interests are looting our treasury and this is beginning to cripple the finances of our nation. We are losing credibility in the international community and shifting a massive burden of debt onto our citizens.
The Fed is a Joke, Literally
Whether or not you are interested in politics, economics or the future of our nation, you owe it to yourself to watch this video. It explains exactly how the Fed is undermining America and why we need to stop them.
What is the Federal Reserve?
Most people think the Federal Reserve is a government agency that answers to our elected officials and ultimately voters. But, nothing could be further from the truth. The Fed is actually a central bank, that is primarily a private entity and much of its input comes from member banks. Although the Chairman testifies in front of Congress and the Board of Governors is appointed by the President, the Fed is virtually unaccountable to the public.
As the nation’s central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.
Why the Fed is Being Criticized
The Fed has gotten touchy lately as the criticism mounts and they have become more vocal in defending their actions. Bernanke’s speech in Germany is a prime example of the Fed’s attempt to stem the criticism and sell QE2 as necessary for America. But, it’s increasingly obvious the Fed is working for the benefit of bankers and not for the benefit of Americans. There are valid reasons for criticism of the Fed and these problems need to be addressed.
- Economic manipulation, causing boom and bust cycles
- Ineffective oversight as a regulator of member banks
- A culture of secrecy and refusal to allow public audits
- Suspicious favoritism in deals with investment banks
- Questionable economic data compiled and published
Fixing the Problems
Stopping Quantitative Easing – The proposed QE2 program, which benefits investment banks at our expense, needs to be stopped immediately. America cannot tolerate another $600 Billion in debt, a weaker dollar and dangerous stimulus for inflation. International economists are universally critical of QE2, because it’s a potential disaster for the global economy.
Federal Reserve Transparency Act – The Federal Reserve should be audited by an independent source and the results of this audit should be made available to the public. According to the proponents of H.R. 1207, the Federal Reserve hasn’t been audited by Congress since their creation in 1913. This law would reform the way the Fed is audited and set a deadline for an audit.
Limiting the Fed’s Mandate – I watched Senator Bob Corker (R-TN) on CNBC Wednesday and he proposed limiting the Fed’s mandate to controlling inflation. A growing number of Republicans want to eliminate the Fed’s mandate for full employment, because it may conflict with the stability mandate. The Fed’s original stimulus seems to have been ineffective in reducing unemployment, but it provided a huge windfall for banks and businesses.
The Bottom Line
The bottom line is that a growing number of critics are starting to question the motives and allegiance of the Federal Reserve. And, this is a very good thing for America. The sooner the Fed’s books are made public, the sooner we can defend our treasury from opportunistic special interests.
“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”
Barry Goldwater – Former U.S. Senator (R-AZ)
This post was featured on the Carnival of Personal Finance over at Sweating the Big Stuff. If you aren’t familiar with the Carnival of Personal Finance, you need to check it out. It’s the greatest carnival on the net.