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Gary Edwards

The Daily Bell - Richard Ebeling on Libertarianism, Anarchism and the Truth of Austrian... - 0 views

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Richard-Ebeling Libertarian banksters

shared by Gary Edwards on 09 Jul 12 - No Cached
  • These are at least two conceivable methods of compelling the government to stop, or limit, its abuse of the monetary printing press.
    • Gary Edwards
      Gary Edwards on 09 Jul 12
       
      Ebeling proposes two methods of reining in out of control government printing of paper money.  There is a third method; one used by Lincoln and Kennedy.  This is the issuance of gold/silver/oil backed reserve notes.  The notes represent gold or silver being held on deposit, and are fully redeemable.   The value of the gold/silver or another commodity represented floats in the marketplace against goods and services.  Nor is there a fixed exchange rate for converting fiat (paper) dollars.  The market will figure those things out if left free to do so.  And that's one big big "if".
  • So the normal market pressures of downward price and wage adjustments in the recession are partly counter-acted by a new monetary expansion that is delaying the necessary re-coordination of market activities. Thus, given these two pressures, prices do not fall as much as a post-recession adjustment may require and they do not rise as much or as fast as might otherwise occur due to the renewed monetary expansion.
  • At the same time, as you correctly ask, the Federal Reserve has been paying banks a relatively low rate of interest to keep large excessive reserves in their accounts at the Federal Reserve, rather than to fully lend those excessive reserves to private borrowers. And given the low market rates of interest that Federal Reserve policy has generated, even the low rate of interest on unlent excess reserves offered to banks by the Federal Reserve appears the relatively more profitable way to use their available funds.
  • ...44 more annotations...
  • Why has the Federal Reserve done this? They infused these two trillion dollars into the financial markets back in 2008-2010 because they feared that an economy-wide bank collapse was possible. They are afraid to reverse this monetary expansion because to do so would reduce potential bank-lending capacity and put upward pressure on interest rates at a time when the Federal Reserve wants to prevent the sluggish recovery from slowing down even more and also raise the cost of the US government's financing of its trillion dollar a year deficits. So, instead, they leave this excess bank lending power sloshing around in the system, while keeping it off the market and from causing significant new price inflationary pressures, by paying banks not to lend those vast sums.
  • Austrians argue that economics is fundamentally a science and study of "human action." It attempts to trace out the logic and implications of man's intentional conduct in selecting among ends desired and applying perceived means to try to attain them. Austrians emphasize that all human action and the social and market interactions among men occur in a setting of imperfect knowledge, inescapable degrees of uncertainty and always through the passage of time.
  • They try to explain the market processes by which men discover mutual gains from trade.
  • They emphasize that the networks of social institutions in which and through which men discover ways to coordinate their interdependent actions in complex systems of division of labor are not the creations of government edict or command; but are most often among those unintended consequences of multitudes of self-interested individual actions and interactions.
  • They have developed theories of market competition and the role of the entrepreneur as the individuals always alert to market opportunities, and whose actions tend to bring about coordination between market supplies and demands.
  • The Austrian analysis of markets, competition and prices, led them to devastating critiques of the unworkability of all forms of socialist central planning, the inherent contradictions and inconsistencies in virtually all forms of government intervention and regulation, and a theory of money and the business cycle that points the finger of responsibility for inflations and recessions at the doorstep of government monetary and fiscal policies.
  • The philosophy of liberty proclaims that each individual is unique and possessing inherent rights to his life, liberty and honestly acquired property.
  • It is not surprising that classical liberal and libertarian ideas are often attacked. After all they are the ideas that consistently oppose the current political systems of plunder, privilege and power lusting.
  • That government, if it is to exist, is to serve as the protector and guardian of our distinct individual rights, and not the master of men who are obligated to sacrifice themselves for some asserted "national interest," "general welfare," or "common good."
  • The only reasonable meaning to the "common good" or the "general welfare" is when each individual is free to peacefully live his life as he chooses and is at liberty to voluntarily associate and interact with his fellow men for mutually beneficial improvements to their lives.
  • It is virtually inevitable that those who use political power for their own gain at their neighbor's expense will vehemently resist and oppose any attempt to stop them from feeding at the government trough.
  • there is everywhere a class of plundering peoples – politicians, bureaucrats, special interest groups – receiving tax-based income redistributions and subsidies and benefiting from anti-competitive regulations and protections against and at the expense of their fellow human beings.
  • This is the great battle of the twenty-first century;
  • Austrian Economics, not surprisingly, has been attacked precisely because of its insightful and cogent analysis of how it was government intervention and central bank monetary manipulation that generated the unsustainable boom in the last decade that set the stage for the inescapable bust, which the world is still suffering from.
  • There are "natural rights" libertarians
  • "utilitarian" or "consequentialist" libertarians.
  • most convincing case for human liberty
  • Because libertarians have not agreed about this among themselves, nor have they been able to persuade enough others in society to move the world further away from the collectivist premises and the interventionist-welfare state policies that guide so much that goes on in the world.
  • I happen to have been most strongly influenced by the "natural rights" defense of liberty, and especially as formulated by Ayn Rand in her philosophy of Objectivism.
  • First, it is argued that if one believes that the use of any and all forms of coercion are morally unacceptable in human relationships, then this should also imply that any compulsory taxation, even when for the funding of defense and legal justice, is unjustifiable. And, second, it is argued that the private sector could provide such admittedly essential services far more efficiently and cost-effectively than the monopoly agency of government. Murray Rothbard and David Friedman probably have been among the most well-known and articulate proponents of the anarcho-capitalist position over the last 50 years.
  • Others like the Ayn Rand, Robert Nozick and Ludwig von Mises have made the case for constitutionally limited government. Their counter arguments have centered on the ideas that conflicts over jurisdiction, disputes among private defense agencies contracted by different individuals who have disagreements, and the likelihood that "defense" would turn out to be a "natural monopoly" anyway – that is, a tendency for one agency to end up being the single provider of defense and judicial services over a wide geographical area – raise questions about the long-run workability and sustainability of competing defense companies in society.
  • From a moral perspective, I am in sympathy with the anarcho-capitalist position, in that I find the compulsory taking of people's income and wealth without their consent for whatever reason to be ethically repugnant.
  • We should focus on what we all agree upon:
  • This means that the Supreme Court has said that you are the slave of "society" and the government that represents "the people," since, in principle, anything that you do or not do can be argued to have some affect, positive or negative, on others.
  • Think about this Court decision. It is saying that if you do not buy health insurance the government will tax you to pay for it. If you refuse to pay the tax, the government will end up attempting to seize financial assets or real property you own in lieu of failure to pay. If you try to prevent this taking of your property, you are subject to arrest and imprisonment. If you resist arrest or imprisonment, the police have the authority to force you to comply – up to and including lethal force to subdue you into obedience.
  • the freedom and dignity of the individual human being; and the attempt whenever and wherever on our part to reduce, repeal and abolish all forms of regulation, control, restriction, prohibition on the peaceful and honest affairs of our fellow men.
  • Once you accept this premise, there is no end to the minutest detail and content of your life and actions the government cannot claim jurisdiction over to regulate, control or prohibit.
  • Here is that end-of-the-road of the notion of unlimited democratic rule by "the people" and those who claim to speak for "the people" and rule on their behalf.
  • Ayn Rand, of course, rejected any connection or compatibility with libertarianism. She argued this on two grounds. First, she felt that too frequently libertarians spoke of individual freedom, free markets and limited government, but failed to explicitly and clearly ground their political-economic ideas in a demonstrable philosophy of man, nature and society.
  • Government control of money is the potentially most dangerous and damaging form of government power short of outright socialism.
  • Rand's political philosophy arises out of the "natural rights" tradition, that rights are inherent in the nature of man and precede government.
  • Mises believed that rights were, in a sense, "social conventions" that had evolved out of the discovery that certain social institutional arrangements were more conducive to the mutual betterment of all members of society for achieving their individual goals and values
  • What they did agree upon was that, given their respective conceptions of the basis of individual rights, there was no social and economic system more consistent with the protection of those rights and more likely to generate the material and cultural achievements that are potentially possible than laissez-faire capitalism.
  • And in the twentieth century, Rand and Mises were two of the most principled and uncompromising advocates for the completely free market society
  • Second, she rejected the anarchist elements in the libertarian movement, believing that any reasonable analysis of the reality of man and the human condition strongly suggested the inescapable need for a single legal standard for defining and enforcing individual rights and a single authority to as impartially and "objectively" as possible enforce laws defending each individual's rights to his life, liberty and honestly acquired property.
  • "Hardly ever do the advocates of free capitalism realize how utterly their ideal was frustrated at the moment the state assumed control of the monetary system . . .
  • A 'free' capitalism with government responsibility for money and credit has lost its innocence.
  • From that point on it is no longer a matter of principle but one of expediency how far one wishes or permits government interference to go.
  • Money control is the supreme and most comprehensive of all governmental controls short of expropriation."
  • Government basically has three ways to acquire the income and wealth of its citizens: taxation, borrowing and printing money
  • So, governments throughout history have turned to the monetary printing press to fund the expenditures not covered by taxes or borrowed money
  • This "non-neutral," or uneven, impact on prices and wages in the economy during the inflationary process brings in its wake distorted profit margins, misallocations of resources and labor and various mal-investments of capital. Here are the seeds for the artificial and unsustainable "booms" that invariably come crashing down in the "bust" once the monetary expansion that has set it all in motion is stopped or slowed down.
  • I believe that the choice and use of money should be left to the market, that is, to the free and voluntary interactive decisions of those buying and selling in the market.
  • I consider a private, competitive free banking system to be the only one consistent with a truly free market society.
Gary Edwards

The Daily Bell - Richard Ebeling on Higher Interest Rates, Collectivism and the Coming ... - 0 views

www.thedailybell.com/...tivism-and-the-Coming-Collapse

Richard-Ebeling The-Daily-Bell Austrian-Economics Liberty-Tryanny

shared by Gary Edwards on 17 Jun 13 - No Cached
  • The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.
  • While many on "the left" ridicule the idea, there is a strong case for the idea of "American exceptionalism," meaning that the United States stands out as something unique, different and special among the nations of the world.
  • the American Founding Fathers constructed a political system in the United States based on a concept on which no other country was consciously founded:
  • ...95 more annotations...
  • But the American Revolution and the US Constitution hailed a different conception of man, society and government.
  • n the rest of the world, and for all of human history, the presumption has been that the individual was a slave or a subject to a higher authority. It might be the tribal chief; or the "divinely ordained" monarch who presumed to rule over and control people in the name of God; or, especially after the French Revolution and the rise of modern socialism, "the nation" or "the people" who laid claim to the life and work of the individual.
  • the idea of individual rights.
  • That is, as long as the individual did not violate the equal rights of others to their life, liberty and property, each person was free to shape and guide his own future, and give meaning and value to his own life as he considered best in the pursuit of that happiness that was considered the purpose and goal of each man during his sojourn on this Earth.
  • Governments did not exist to give or bestow "rights" or "privileges" at its own discretion.
  • Governments were to secure and protect each individual's rights, which he possessed by "the nature of things."
  • The individual was presumed to own himself. He was "sovereign."
  • The real and fundamental notion of "self-government" referred to the right of each individual to rule over himself.
  • Each individual, by his nature and his reason, had a right to his life, his liberty and his honestly acquired property.
  • during the first 150 years of America's history there was virtually no Welfare State and relatively few government regulations, controls and restrictions on the choices and actions of the free citizen.
  • But for more than a century, now, an opposing conception of man, society and government has increasingly gained a hold over the ideas and attitudes of people in the US.
  • It was "imported" from Europe in the form of modern collectivism.
  • The individual was expected to see himself as belonging to something "greater" than himself. He was to sacrifice for "great national causes."
  • He was told that if life had not provided all that he desired or hoped for, it was because others had "exploited" him in some economic or social manner, and that government would redress the "injustice" through redistribution of wealth or regulation of the marketplace.
  • If he had had financial and material success, the individual should feel guilty and embarrassed by it, because, surely, if some had noticeably more, it could only be because others had been forced to live with noticeably less.
  • left on its own, free competition tends to evolve into harmful monopolies and oligopolies, with the wealthy "few" benefiting at the expense of the "many."
  • They are the crises of the Interventionist-Welfare State: the attempt to impose reactionary collectivist policies of political paternalism and redistributive plunder on a society still possessing parts of its original individualist and rights-based roots.
  • it is in the form of communism's and socialism's critique of capitalism.
  • Unregulated capitalism leads to "unearned" and "excessive" profits; unbridled markets generate the business cycle and the hardships of recessions and depressions;
  • These two conflicting conceptions of man, society and government have been and are at war here in the United States.
  • And if it cannot be gotten and guaranteed through the redistributive mechanisms of the European Union and the euro, well, maybe we should return power to our own nation-states to provide the jobs, the social "safety nets" and the financial means to pay for it through, once again, printing our own national paper currencies.
  • This is the political-philosophical bankruptcy of the West and the dead ends of the collectivist promises of the last 100 years.
  • Ludwig von Mises's book, Socialism: An Economic and Sociological Analysis, originally published in 1922, demonstrated how and why a socialist, centrally planned system was inherently unworkable.
  • The nationalization of productive property, the abolition of markets and the prohibition of all competitive exchange among the members of society would prevent the emergence and operation of a price system, without which it is impossible to know people's demands for desired goods and the relative value they place on them.
  • It also prevents the emergence of prices for the factors of production (land, labor, capital) and makes it impossible to know their opportunity costs – the value of those factors of production in alternative competing uses among entrepreneurs desiring to employ them.
  • Without such a price system the central planners are flying blind, unable to rationally know or decide how best to utilize labor, capital and resources in productively efficient ways to make the goods and services most highly valued by the consuming public.
  • Thus, Mises concluded, comprehensive socialist central planning would lead to "planned chaos."
  • And, therefore, there is no guarantee that the amount of investments undertaken and their time horizons are compatible with the available resources not also being demanded and used for more immediate consumer goods production in the society.
  • As a consequence, financial markets do not work like real markets.
  • Thus, the interventionist state leads to waste, inefficiency and misuses of resources that lower the standards of living that we all, otherwise, could have enjoyed.
  • We cannot be sure what the amount of real savings may be in the society to support real and sustainable investment and capital formation.
  • Government intervention prevents prices from "telling the truth" about the real supply and demand conditions thus leading to imbalances and distortions in the market.
  • We cannot know what the "real cost" of borrowing should be, since interest rates are not determined by actual, private sector savings and investment decisions.
  • Government production regulations, controls, restrictions and prohibitions prevent entrepreneurs from using their knowledge, ability and capital in ways that most effectively produce the goods consumers actually want and at the most cost-competitive prices possible.
  • This is why countries around the world periodically experience booms and busts, inflations and recessions − not because of some inherent instabilities or "irrationalities" in financial markets, but because of monetary central planning through central banking that does not allow market-based financial intermediation to develop and work as it could and would in a real free-market setting.
  • But in the United States and especially in Europe, government "austerity" means merely temporarily reducing the rate of increase in government spending, slowing down the rate at which new debt is accumulating and significantly raising taxes in an attempt to close the deficit gap.
  • The fundamental problem is that over the decades, the size and scope of governments in the Western world have been growing far more than the rates at which their economies have been expanding, so that the "slice" of the national economic "pie" eaten by government has been growing larger and larger, even when the "pie" in absolute terms is bigger than it was, say, 30 or 40 years ago.
  • European governments, in general, take the view that "austerity" means squeezing the private sector more through taxes and other revenue sources to avoid any noticeable and significant cuts in what government does and spends.
  • So there is "austerity" for the private sector and a mad rush for financial "safety nets" for the government and those who live off the State.
  • In reality, of course, it is the burdens of government regulation, taxation and impediments to more flexible labor and related markets that have generated the high unemployment rates and the retarded recovery from the recession.
  • Instead, the "common market" ideal has been transformed into the goal of a European Union "Super-State" to which the individual countries and their citizens would be subservient and obedient.
  • Keynesian policies offer people and politicians what they want to hear. Claiming that any sluggish business or lost jobs are due to a lack of "aggregate demand," Keynes argued that full employment and profitable business could only be reestablished and maintained through "activist" government monetary and fiscal policy – print money and run budget deficits.
  • What Britain and Europe should have as its goal is the ideal of the classical liberal free traders of the 19th century – non-intervention by governments in people's lives, at home and abroad. That is, a de-politicization of society, so people may freely work, trade and travel as they peacefully wish, with government merely the protector of people's individual rights.
  • Take the benefits away and tell people they are free to come and work to support themselves and their families. Restore more flexibility and competitiveness to labor markets and reduce taxes and business regulations.
  • Then those who come to Britain's shores will be those wanting freedom and opportunity without being a burden upon others.
  • What was needed was a change in ideas from the statist mentality to one of individual freedom and unhampered free markets.
  • In an epoch of collectivist ideas, don't be surprised if governments regulate, control, intervene and redistribute wealth.
  • The tentacle of regulations, restrictions and politically-correct social controls are spreading out in every direction from Brussels and its European-wide manipulating and mismanaging bureaucracy.
  • In the name of assuring "national prosperity," politicians could spend money to buy the votes that get them elected and reelected to government offices.
  • And every special interest group could make the case that government-spending programs that benefitted them were all reasonable and necessary to assure a fully employed and growing economy.
  • Furthermore, the Keynesian rationale for government deficit spending enabled politicians to seem to be able to offer something for nothing. They could offer, say, $100 of government spending to voters and special interest groups but the tax burden imposed in the present might only be $75, since the remainder of the money to pay for that government spending was borrowed. And that borrowed money would not have to be repaid until some indefinite time in the future by unspecific taxpayers when that "tomorrow" finally arrived.
  • instability
  • Keynes argued that the market economy's inherent
  • arose from the
  • who were subject to irrational and unpredictable waves of "optimism" and "pessimism."
  • animal spirits" of businessmen
  • Mises argued that there was nothing inherent in the market economy to bring about these swings of economic booms followed by periods of depression and unemployment.
  • If markets got out of balance with the necessity of an eventual correction in the economy to, once again, set things right, the source of this instability was government monetary policy.
  • Central banks too often followed a policy of trying to create "good times" in the economy by expanding the money supply through the banking system.
  • With new, excess funds created by the central bank available for lending, banks lower rates of interest to attract borrowers.
  • But this throws savings and investment out of balance, since the rate of interest no longer serves as a reliable indicator and signal concerning the availability of real savings in the economy in relation to those wanting to borrow funds for various investment purposes.
  • The economic crisis comes when it is discovered that all the claims on resources, capital and labor for all the attempted consumption and investment activities in the economy are greater than the actual and available amounts of such scarce resources.
  • The recession period, in Mises's view, is the necessary "correction" period when in the post-boom era, people must adapt and adjust to the newly discovered "real" supply and demand conditions in the market.
  • Any interference with the "rebalancing" of the economy by government raising taxes, imposing more regulations, or new artificial government "stimulus" activities merely makes it more difficult and time-consuming for people in the private sector to get the economy back on an even keel.
  • Friedrich A. Hayek, once observed, unemployment is not "caused" by stopping an inflation, but rather inflation induces the artificial employments that cannot be sustained and which inevitably disappear once the inflation is reined in.
  • The recession of 2008-2009 was the result of several years of central bank stimulus.
  • From 2003 to 2008, the Federal Reserve increased the money supply by about 50 percent.
  • Interest rates for much of this time, when adjusted for inflation, were either zero or negative.
  • Awash in cash, banks extended loans to virtually anyone, with no serious and usual concern about the borrower's credit-worthiness.
  • This was most notably true in the housing market, where government agencies like Fannie May and Freddie Mac were pressuring banks to make mortgage loans by promising a guarantee that they would make good on any bad home loans.
  • Since 2008-2009, the Federal Reserve has, again, turned on the monetary spigot, increasing its own portfolio by almost $3 trillion, by buying US Treasuries, US mortgages and other assets.
  • So why has there not been a complementary explosion of price inflation?
  • In some areas there has been, most clearly in the stock market and the bond market, But the reason why all that newly created money has not brought about a higher price inflation is due to the fact that a large part of all newly created money is sitting as unlent reserves in banks.
  • This is because the Federal Reserve has been paying banks a rate of interest slightly above the market interest rates to induce banks not to lend.
  • (a) general "regime uncertainty," that is, no one knows what government policy will be tomorrow; will ObamaCare be fully implemented after January 2014?;
  • Among the reasons for the sluggish jobs growth in the US are:
  • (b) what will taxes be for the rest of the current president's term in the White House
  • (c) what will the regulatory environment be like for the next three years – in 2012, the government implemented around 80,000 pages of regulations as printed in the Federal Registry;
  • (d) how will the deficit and debt problems play out between Congress and the White House and will it threaten the general financial situation in the country; an
  • (e) what wars, if any, will the government find itself involved in, in places like the Middle East?
  • China
  • is still a controlled and commanded society, with a government that works hard to try to determine what people read, see and think.
  • All these building projects have been brought into existence by a government that not only controls the money supply and manipulates interest rates but also heavy-handedly tells banks whom to specifically loan to and for what investment activities.
  • Central planning is alive and well in China, with the motives being both power and profits for those inside and outside the Communist Party having the most influence and connections in "high" places.
  • In my opinion, China is heading for a great economic crisis, resulting from a highly imbalanced and distorted economic system still guided far more by politics than sound market decision-making.
  • global financial markets in any foreseeable future. It is a money that still primarily exists to serve the political purposes of those who sit in the "inner circles" of power in Beijing.
  • One hundred years ago, in 1913, how many could have predicted that a year later a European-wide war would break out that would lead to the destruction of great European empires and set the stage for the rise of totalitarian collectivism that resulted in an even worse global war two decades later?
  • Thus, whether, at the end of the day, freedom triumphs and the future is one of liberty and prosperity is partly on each one of us.
  • Near the end of his great book, Socialism, Ludwig von Mises said:
  • "Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone, in his own interest, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us . . . Whether society shall continue to evolve or where it shall decay lies . . . in the hands of man."
  • In my view, the idea of a "soft landing" is an illusion based on the idea held by central bankers, themselves, that they have the wisdom and ability to know how to "micro-manage" the all the changes and adjustments resulting from their own manipulations of the monetary aggregates. They do not have this wisdom and ability. So hold on for what is most likely to be another rocky road.
  • It was Mises's clear vision that once society has broken the relationship between value and payment, sooner or later people would not know the price of anything.
  • At this point, investment ceases and business becomes furtive and transactional.
  • People cannot plan for the future because they do not understand the reality of the present.
  • Society begins to sink.
  • Gary Edwards on 17 Jun 13
     
    Incredible.  A simple explanation that explains everything.  Rchard Ebeling's "Unified Theory of Everything" is something every American can understand.  If only they would take a break from "Dancing with the Stars" and pay attention to the future of their country and the world.  It's a future where either "individual freedom", as defined by our Constitution and Declaration of Independence, will win out; or, the forces of fascist socialism / marxism will continue to roll and rule.  Incredible read!!!!
Gary Edwards

The Project To Restore America - 0 views

www.theprojecttorestoreamerica.com

Federal-Reserve-Bankster-Cartel

shared by Gary Edwards on 18 Dec 13 - No Cached
  • One hundred years ago this month, on December 23, 1913, the Congress passed the Federal Reserve Act, establishing a national central-banking system in the United States. The governing board of the Federal Reserve was organized on August 12, 1914, and the Federal Reserve banks opened for operation on November 16, 1914.   On the surface, the preamble to the Act, which summarized the purpose of the new government-created institution, seemed fairly innocuous:   “An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.”
  • The Powers of the Federal Reserve   But what this meant was the start of the monopolization of monetary matters in the hands of a single politically appointed authority within the boundaries of the United States.   Those innocuously sounding functions listed in the Act’s preamble, however, gave the Federal Reserve the power to:   (a) Control the quantity of money and credit supplied in the United States.   (b) Influence the value, or purchasing power, of the monetary unit that is used by the citizenry of the country in all their transactions.   (c) Indirectly manipulate the rates of interest at which borrowers and lenders transfer savings for investment and other purposes, including the funding of government budget deficits.
  • A Century of Central Bank Mismanagement   The 100-year record of the Federal Reserve has been a roller coaster of inflations and recessions, including the disaster of the Great Depression of the 1930s, the “excessive exuberance” of the late 1990s that resulted in the “Dot.Com” bubble that burst in the early 2000s, and the recent boom-bust cycle of the last decade from which the U.S. economy is still slowly recovering.   The crucial and fundamental problem with the power and authority of the Federal Reserve is that it represents monetary central planning. In a world that has, for the most part, turned its back on the theoretical error and practical disaster of believing that governments have the wisdom and ability to centrally plan the economic affairs of a society, central banking remains one of the major remaining forms of socialism practiced around the globe.   Government control and planning of the monetary system has resulted in extensive political power over virtually every aspect of our economic life. In 1942 Gustav Stolper, a German free-market economist then in exile in America from war-torn Europe, published a book titled “This Age of Fables.” He pointed out:
  • ...1 more annotation...
  • “Hardly ever do the advocates of free capitalism realize how utterly their ideal was frustrated at the moment the state assumed control of the monetary system . . . A ‘free’ capitalism with government responsibility for money and credit has lost its innocence. From that point on it is no longer a matter of principle but one of expediency how far one wishes or permits government interference to go. Money control is the supreme and most comprehensive of all governmental controls short of expropriation.”
  • Gary Edwards on 18 Dec 13
     
    Interesting two part summary of the Federal Reserve that emphasis' the essential relationship between central banking and socialism.  The author, Richard Ebeling, goes as far as to say that not only is central banking essential to socialism but also that free market - individual liberty capitalism cannot coexist with central banking. IIRC, there is a clause int he Federal Reserve Act of 1913 where the US Treasury can purchase back control of the money supply at a cost of $144 Million dollars.  Not sure where I read that, but the cancellation of near two thirds of the interest due on our national debt would work wonders for the dollar.
Gary Edwards

Restoring a Spirit of Liberty Will Solve America's Political Problems - 0 views

www.thedailybell.com/...ve-Americas-Political-Problems

liberty America USA-Constitution

shared by Gary Edwards on 22 Oct 13 - No Cached
  • Gary Edwards on 22 Oct 13
     
    excerpt: "Personal Freedom or Political Paternalism? The real issue facing the United States concerns the soul of the American people. It is really about the kind of America that we will have in the 21st century. For decades the country has been moving away from it historical roots in a political philosophy of personal freedom and drifting further and further in the direction of political paternalism. The noose of government control has been tightening around the collective neck of the nation. More and more aspects of our lives have come under the supervision and manipulation of the government. The government educates our children; it provides us with retirement checks; it increasingly manages our health care and medical matters; it redistributes wealth from those deemed to have too much to those considered not to have enough; it regulates the food we eat, the places where we work and the way we produce, as well as signing off on the goods and services we buy. Government tries to ban what it decides is harmful for us to do or use, it oversees how and with whom we interact, and for what purposes, and it increasingly surveills every move we make and every phone call we take. Size of Government and Dependency In 1913, one hundred years ago, just before the beginning of the First World War, all levels of government - federal, state and local - taxed away and spent only about 8 percent of national income, leaving the remaining 92 percent in the pockets of the American people to spend as they considered best. Today, all levels of government siphon off and spend over 35 percent of national income. But what is important is not merely these numbers, however significant they are in understanding the drag of government on the productive private sector. More important is what they indicate about a psychology of dependency among the American people on the activities of the government. This is not simply those who may receive welfare checks, or who are directly emp
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