Thursday, June 18, 2009
Dodd: Giving the Fed More Power is like Awarding a Son a “Bigger, Faster Car Right after He Crashed the Family Station Wagon"
The chairman of the senate banking committee - Christopher Dodd - quoted a critic of the plan to expand the Federal Reserve's powers as being:
like awarding a son a “bigger, faster car right after he crashed the family station wagon.” He added that he hadn’t made a conclusion on the issue.The critic is correct.
The Fed caused the Great Depression, according to Bernanke himself. The Fed largely caused the current financial crisis. The Fed creates new "money" out of thin air, and then charges massive amounts in interest to the federal government, impoverishing the nation and stealing its natural wealth. And the Fed has refused to tell Congress or the American people where the trillions of dollars in bailout money are going (see this, this, this, and this).
And the Fed is not even really a governmental institution. The Fed itself states that its 12 member banks are private institutions, owned by private banks.
However, Dodd's statement that he hasn't yet made up his mind about expanding the Fed's powers is just for show. In fact, Dodd and House banking committee chair Barney Frank were involved with Summers and Geithner every step of the way in drafting the plan to give the Fed more power.
According to an article by AP, Democratic leaders have committed to enacting the plan before the end of the year and Republicans in both the House and Senate have indicated that they won’t stand in the way of the overhaul.
Paul Joseph Watson and Steve Watson have some strong words and straightforward advice about the issue:
It can be no more apparent than at this time that legislation to audit, repeal and eventually end the Federal Reserve, must be supported by Americans if they want to see their children and their grandchildren grow up without indentured debt and entrenched servitude to a fascistic marriage of private banks and hugely inflated government.And as Kurt Nimmo notes:
Our only hope at this point is the Federal Reserve Transparency Act, HR 1207, now up to 232 co-sponsors. It needs a two-thirds vote with 290 members on board so ... Obama will not veto it.
2 comments:
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"The Fed caused the Great Depression..."
ReplyDeleteWhat he meant is that the FED didn't reacted properly by flooding the economy with liquidity, which is now happening.
The question is: would that have prevented the great depression? We see now that the real economy is getting worse and the economists Eichengreen and O´Rourke have with their comparison of the two depressions shown that today's is still severe, despite the proper reaction of the FED.
In my opinion the problem is first of all systemic (overproduction, overaccumulation etc.) and second a matter of trust.Their is a lack of trust in the government and the banks, which leads to an increase in saving.As result with have the recession and stagnation in the real economy.
Mr. Anonymous,
ReplyDeleteyour comments on the Fed and the "systemic" anarchy of the so-called business cycle shows that you mistaken about the causal factors in our economy, or what the Fed's role is. I would suggest you do some follow-up reading. I'll post an article I just wrote about this issue. read it. feel free to continue this discussion there.
ericpottenger.blogspot.com/2009/06/obama's-new-banking-plan-to-give-fed.html