A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding. Resulting from secret negotiations between bankers and politicians at Jekyll Island, the Fed’s creation established a banking cartel and a board of government overseers that has grown ever stronger through the years.
One would think this anniversary would elicit some sort of public recognition of the Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning. But just like the Fed’s creation, its 100th anniversary may come and go with only a few passing mentions.
Like many other horrible and unconstitutional pieces of legislation, the bill which created the Fed, the Federal Reserve Act, was passed under great pressure on December 23, 1913, in the waning moments before Congress recessed for Christmas with many Members already absent from those final votes. This underhanded method of pressuring Congress with such a deadline to pass the Federal Reserve Act would provide a foreshadowing of the Fed’s insidious effects on the US economy—with actions performed without transparency.
Ostensibly formed with the goal of preventing financial crises such as the Panic of 1907, the Fed has become increasingly powerful over the years. Rather than preventing financial crises, however, the Fed has constantly caused new ones. Barely a few years after its inception, the Fed’s inflationary monetary policy to help fund World War I led to the Depression of 1920. After the economy bounced back from that episode, a further injection of easy money and credit by the Fed led to the Roaring Twenties and to the Great Depression, the worst economic crisis in American history.
But even though the Fed continued to make the same mistakes over and over again, no one in Washington ever questioned the wisdom of having a central bank. Instead, after each episode the Fed was given more and more power over the economy. Even though the Fed had brought about the stagflation of the 1970s, Congress decided to formally task the Federal Reserve in 1978 with maintaining full employment and stable prices, combined with constantly adding horrendously harmful regulations. Talk about putting the inmates in charge of the asylum!
Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.
Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed.
This article first appeared at Ron Paul’s website The-Free-Foundation.com. He also runs the RonPaulChannel.com and the RonPaulInstitute.com
3 thoughts on “After 100 Years Of Failure, It’s Time To End The Fed!”
I’m curious to see how this Fed Reserve expiration date is going to play out. Are they going to continue the Fed, are they going to ignore it, or are they going to do something else to take the place of it?
Can’t see them collapsing the dollar so suddenly. It’s just not their style since they like to do everything slowly rather than just dropping the ball all at once. So I don’t know.
My guess is that they’ll keep trudging
along as they’re doing now.
Mention of the date will come about …
Then a while latter, we’ll hear a blurb about
the renewing of the system with little or no fan fair.
What the masses don’t know, they don’t need to know.
That’s their philosophy ……
Ron Paul brought up a motion to audit the Fed. every year of his tenure in the non-functioning Congress. To understand the corrupt nature of the Fed just web up its’ history & learn….Its’ creation was allowed by President Woodrow Wilson to pay a $40, 000.00 exposure threat from his prostitute. He didn’t have the money so he caved in to the Rothschilds & Warbergs to take care of her for him, thence the Fed was born! Check out who owns the Fed & you’ll find at the top of the list Goldman Sachs, also, controlled by the Rothschilds. Chase & the Rockefellers are in there too! The Fed has caused the dollar to lose 94% of its’ value since its inception on Dec. 23, 1913…….SHAME……Continue to fight for Liberty, Freedom, Justice & Truth