Wednesday, November 18, 2009

Bring Down The Federal Reserve

Excerpts from the above link about the Federal Reserve and Fiat Monies.

"The US government was ably & irresponsibly issuing “fiat” money – “government issued coupons with expiration dates printed in invisible ink” (Darryl Schoon)

While productivity is doing more with less, fiat money allows governments to do more with nothing. Fiat currencies are a way for governments to spend what they don’t have; and while counterfeiting by individuals is a crime, passing government coupons off as money is legal because governments make the laws.” (Darryl Schoon). In truth, the issuance of fiat money by governments is a white collar crime & yet illegally made legal. Isn’t it kind of double standard?

The present day classic example is drawn from Zimbabwe, where the government is broke – hyper-inflation exists & where unlimited printing of money is the order of the day & is in surplus circulation with denominations running into the millions or more.

If history is anything to go by, fiat money, to put it kindly, has been one of failure. Every fiat currency since the Roman times had ended in devaluation & eventual collapse – for the currency as well as the economy of the country. During the Song Dynasty, the Chinese experimented with paper money which however was redeemable. It took several hundred years but finally abandoned due to unacceptable levels of inflation as money printing exceeded production.

For thousands of years gold & silver have demonstrated their utility. Unfortunately, governments historically have either debased & diluted the amount of gold & silver in their coins or “attempted to circumvent gold & silver entirely by mandating the use of paper money, sic fiat.” US unilaterally broke off its tie to gold standard during the presidency of Richard Nixon in 1971.

What’s most amazing & little known fact is that the Federal Reserve is not part of the US Government. It is in fact owned by a collection of the world’s biggest banks & the biggest family names like Rothschild & Rockefeller in Britain & America.

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