Central banking is the enemy

Michael S. Rozeff explains why, and provides a good introduction to how the Fed is set up. Here's his summary of the problems it causes and how those problems result directly from the Fed itself:

Our current banking system has, from the viewpoint of the general public, three main ills. The first of these is that it produces economic instability, that is, a boom-bust cycle or expansion and recession (or depression). The second, which is related to the first, is that it produces a continuing loss in purchasing power of the dollar. Third is that the banking system provides support to ill-conceived and destructive spending policies of the State. These three ills retard a normal course of economic expansion and impoverish many persons in our country in a most unjust way.

Four separate elements are responsible for these failings of the banking system. One is that banks promise that demand deposits will be paid out on demand, but they cannot possibly meet this requirement for all depositors because they lend out the deposits. Furthermore, their lending results in a multiplied total of further deposits and further loans. Second is that the money used in these deposits is fiat money, that is, money declared to be money that has no sound backing or perceived intrinsic worth. Third is that the money in the banking system has been made legal tender by State law. This means that it must be accepted as a payment medium. Fourth is that deposits are insured by a State agency, the Federal Deposit Insurance Corporation.

Consider why Andrew Jackson fought the central bank:

- It concentrated an excessive amount of the nation's financial strength in a single institution.
- It exposed the government to control by foreign interests.
- It served mainly to make the rich richer.
- It exercised too much control over members of Congress.
- It favored northeastern states over southern and western states.

Was he right? Today, Communist China holds over a half-trillion in Treasury bills. Big business has gobbled up family farms. As Rozeff explains, the New York banks run the system.

Where's Old Hickory when we need him?