Andrew Jackson Had It Right: Central Banks Are The Cause Of Current Economic Mess

[FaninAma]

The current economic morass can be laid squarely at the feet of the Federal Reserve which has been using a huge Ponzi scheme to control the flow of money in this nation since the creation of the FED under Woodrow Wilson.

It was only a matter of time until the scheme collapsed.

As Andrew Jackson stated when he rejected the last attempt to establish a National Bank prior to the creation of the Federal Reserve:

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."

Andrew Jackson


Looks like Ol' Andy had it right. Except now the Fed and its policies have ruined millions of families.

[soonerhubs]

Interesting.

[yermom]

i love playing games i can't lose ;)

[OklahomaTuba]

I hope you're not trying to blame this all on Greenspan, although he should be given some blame on this deal. The Fed has served us damn well, just look what happened when we didn't have a central bank? Chaos.

[tommieharris91]

I hope you're not trying to blame this all on Greenspan, although he should be given some blame on this deal. The Fed has served us damn well, just look what happened when we didn't have a central bank? Chaos.

The chances of seeing Tuba advocate big government like in this post is about the same as me making love with Petra Nemcova. I'm think it's about time for me to take my chances.

[Frozen Sooner]

I hope you're not trying to blame this all on Greenspan, although he should be given some blame on this deal. The Fed has served us damn well, just look what happened when we didn't have a central bank? Chaos.

It's rare that Tuba posts something I agree with 100%. We should probably commemorate this.

[JohnnyMack]

Good idea. I'll post a pic of some hot lesbians making out.

[OklahomaTuba]

I am no fan of central planning and command and control economics, as many of the neo-marxists on this board seem to be, but the track record of the fed has been good to us and this is common sense for crying out loud, even more so considering the Dollar's status as the world's reserve currency.

given that, I do think what the fed is doing right now with some of these programs could be considered illegal and a massive expansion of the federal gubments powers. Or maybe not, hell if I know.

[King Crimson]

neo-marxists....hahaha.

so, where is Obama's or one of his minion's on this board's critique of reification or commodity fetishism. I don't see anyone talking about "the dialectic" or the 2nd book of Capital. just plugging in all-purpose pejoratives for "things you disagree with" based on general trends is pretty intellectually lazy.

[OklahomaTuba]

I think you are making a false assumption that any of the obamatons would actually know what the hell "the dialectic" or the 2nd book of Capital is.

Suggest you google bolshevik & Bank and see what comes up.

[King Crimson]

I think you are making a false assumption that any of the obamatons would actually know what the hell "the dialectic" or the 2nd book of Capital is.



and you do? i don't assume anything about the Obamatons. as part of my job commitments i spend time (in my leisure) listening to Rush and Air America and reading blogs of all spots and colors....and there dumb people everywhere.

nobody reads Marx, least of all democrats. they are just the welfare state side of the capitalist surplus parties. the corrections as excuse to the abuses of the market, as it were.

[FaninAma]

I hope you're not trying to blame this all on Greenspan, although he should be given some blame on this deal. The Fed has served us damn well, just look what happened when we didn't have a central bank? Chaos.

Say what? The worst financial crisis the world has ever known(the Great Depression) happened after the creation of the Fed. Even Ben Benarke states that the Fed's tight money policies played a major role in exacerbating a recession into the Great Depression.

And plaese tell me what the rate of inflation was before the creation of the Fed and the fractional reserve banking system.

http://www.youtube.com/watch?v=8H_EiNXr8m0

[Penguin]

Didn't Jackson kill somebody in a duel in order to stop the Fed from forming?


Could somebody try to explain what the Fed really is? I've heard so many things that I'm almost tempted to believe in conspiracy theories.

Is it true that the Fed is not directly under the government's control? If so, doesn't that violate the Constitution (Article 1, Section 8, Clause 5)? Also, since the Fed is actually a bank, don't they charge the United States government interest? How can they pay back this interest if the currency is 100% under the control of the Fed? Doesn't that force the United States to borrow more money from the Fed just to pay back the interest of the original loan?

Am I way off base?

[FaninAma]

Penguin,

The Fed was set up to control the fractional banking sytem created under Woodrow Wilson. It allowed a non-government controlled bank to control the money supply by setting interest rates and by nationalizing the banking system by allowing the nation's banks to basically increase the amount of credit they could lend by decreasing the amount of actual reserves they had to keep on hand(ie. fractional reserve). This was a drastic departure from the traditional regionally dominated banking system the country had before in which there were more stringent requirements on how much a bank could lend out based on the deposits on hand.

The national income tax was passed at the same time as a means to back the ever increasing credit supply coming from the Fed and the new system.

The problem is that it set up a system of an ever-increasing supply of credit that was doomed to collapse at some point and it allowed our entire economic system to be under the influence of a largely unregulated, unelected class of financial elites.

[FaninAma]

I am no fan of central planning and command and control economics, as many of the neo-marxists on this board seem to be, but the track record of the fed has been good to us and this is common sense for crying out loud, even more so considering the Dollar's status as the world's reserve currency.

given that, I do think what the fed is doing right now with some of these programs could be considered illegal and a massive expansion of the federal gubments powers. Or maybe not, hell if I know.


The Fed was never anything more than a sophisticated ponzi scheme.

The Fed printed money to encourage easier credit/debt that led to increased consumption which in turn led to increased production.

The problem with that scheme is that like all pyramid schemes it can only continue until there are no longer any victims willing to buy into the scheme at the top or in this case buy more of our country's debt that is being used to refinance earlier debt.

The US taxpayers are exhausted. The Chinese and other foreign sovereign wealth funds are tapped out and unwilling to continue buying our debt without significant promises of collateral..

So, the pyramid is collapsing under it's own weight of debt.

The politicians and Wall Street elite are indeed entertaining as they thrash around trying to stop the inevitable. But it is sad to realize they don't understand how they got to this point meaning they will either repeat the same mistakes or agree to compromise our freedom in return for promises from a tyrrant (or class of tyrrants) that they will prevent this from ever happening again.

And the USD soon will no longer be the world's reserve currency. The Bretton Woods agreement is dead. The world will no longer willingly drink the koolaid that allowed this country to live well on massive debt financed by the wealth of the rest of the world.

[Ike]

And the USD soon will no longer be the world's reserve currency. The Bretton Woods agreement is dead. The world will no longer willingly drink the koolaid that allowed this country to live well on massive debt financed by the wealth of the rest of the world.

I don't know about this part of it tho. Because this crisis is so widespread around the globe, people around the world are flocking to the dollar, weakening a large host of other currencies. The dollar may hold on...but only by pure luck it looks like.

[Chuck Bao]

This is an interesting topic.

I am not fully understanding the arguments so far and I’m not really into a historic perspective. The challenges today are so different than any we have ever faced before. Banks are different. The speed of the market is different. Foreign influence is different. It would seem that the US Federal Reserve has not kept up with the times.

With that being said, I would NOT want to see:

1) Politicians in control of monetary policy, interest rates and money supply;
2) Politicians being expected to remain vigilant against inflation; and,
3) Politicians in control of banking supervision, capital adequacy or provisioning requirements (Fannie Mae and Freddie Mac immediately spring to mind).

I am not an expert of the US Federal Reserve system, but I believe that we would be in far worse shape if it weren’t there. I have more of an international perspective and strong independent central banks, in my opinion, have played a key role in the development of the emerging economies in Asia.

I understand complaints that the US Fed completely failed in its responsibilities. Yeah, what is the point of having the elites and checks-and-balances system if they don’t work? The answer I think is that the alternatives are much worse.

On a side note, I’m left wondering if we have made a mistake of making the Fed Chairman too much of a high profile position. It is almost as if they are politicians, spending so much time on televised testimonies on Capitol Hill and possibly thinking ahead to money gigs after retirement. We trust these guys to make us secure, not give us good sound bites and new catch phrases.

[SicEmBaylor]

I hope you're not trying to blame this all on Greenspan, although he should be given some blame on this deal. The Fed has served us damn well, just look what happened when we didn't have a central bank? Chaos.

This is why you aren't a legitimate conservative.