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The Federal Reserve Notes We Call Money!
Just When You Think That The Federal Reserve Board Is About Out of Tricks…
-by Scott Rohter, August 2011
“We must beware of a small group of selfish individuals who would clip the wings of the American eagle in order to feather their own nests.” –FDR
Just when you think that the Federal Reserve Board is about out of tricks and they can’t revive our ailing economy anymore, they somehow manage to pull another rabbit out of a hat. By that I mean they perform another phenomenal feat of prestidigitation and somehow manage to revitalize the rotting carcass of our ailing economy once again. That is what accounted for the 429 point rise in the stock market today only one day after the worst single day decline in recent history of 520 points.
This un-constitutional cabal of private bankers headed up by Federal Reserve Board Chairman Ben Bernanke, who have run our Nation’s monetary system since 1913, or rather who have run it into the ground, are still not done with their magical manipulations of our stock market and the commodities market, and the Nation’s monetary supply (M1). For whom other than a magician, or a group of magicians can come up with such fanciful terminology as Quantitative Easing (QE1 and QE2), and with such a skillful slight of hand get a vast audience of unsuspecting minds to actually believe in what they are doing?
Normally the Federal Reserve Board will raise or lower the Bank Discount Rate, which is the rate that they charge other banks to borrow money, or at least those nearly worthless Federal Reserve Notes (FRN’s) that they call money. And by raising or lowering the Discount Rate, they also raise or lower all of the other interest rates throughout the entire economy, which makes it either more or less likely that investors will put money into the stock market, or the bond market, or the future’s market, or decide not to invest at all. But that Discount Rate has already been set at about zero for some time now in order to stimulate the failing economy, and you can’t get any lower than zero can you? But maybe they can. Maybe they can cause banks to actually start paying people to borrow money by actually paying those banks to borrow their own money. What a novel idea. Why don’t you try calling up your bank tomorrow and saying this... “If you guys want me to borrow money, then you will have to pay me to borrow your money!” I like the sound of that. Instead of ‘liar loans’, we could have ‘ high flyer loans’, and we’d all be flying so high at the thought of banks paying us to borrow their money... But now back down to reality. Banks are never going to pay you to borrow money. They are in the business of making money, not losing money. So the Federal Reserve Board has put their collective heads together instead and come up with a better scheme. At least its better for them.
Since the Bank Discount Rate is already set at almost zero, and they can’t go into negative territory, the powers that be have decided to promise to keep the Bank Discount Rate at about zero for the next two years through 2013. What a coincidence. That is the 100th year anniversary of the creation of the Federal Reserve Board. It will be a 100 year anniversary celebratory discount rate. What do you think of that for a magic trick? I know what I think. I think that a promise from these guys at the Federal Reserve Board is about as worthless as the nearly worthless promissory notes that they issue called Federal Reserve Notes. Those are the bills that the rest of us call money.
Editor’s Note: Up until now I have only been tossing around verbal barbs at the Federal Reserve Board and pointing out what is wrong with our current system. Let me therefor propose a solution to the problem... The Constitution delegates the responsibility for managing our nation’s monetary supply and other financial matters to Congres. In the United States Constitution it states that only “Congress shall have the power to coin money and regulate the value thereof.” US Constitution, Article 1, Section 8, Clause 1 through 5.
Perhaps our Congress should try re-asserting its rightful Constitutional role and authority over the Nation's monetary supply. Perhaps it should try to re-assert control over the Nation’s economy including the banking industry instead of assigning these Constitutional responsibilities to a private corporation. But Congress has made a habit of shifting its Constitutional responsibilities to other groups or bodies that it chooses, such as shifting the power to declare war to the President, and then assuming other responsibilities that the Constitution doesn’t even assign to it! I wish you would just stick to the Constitution boys. It is your roadmap. It is your global political positioning satellite.
"The truth, the political truth, and nothing but the political truth.
A journalist has no better friend than the truth." - Scott Rohter