Why does Ron Paul persist in acting like such a grown-up?
America is still enjoying the Great Credit Party, and Ron Paul comes in and says it’s time to go home. sheesh.
Seriously, the Federal Reserve is a private corporation. It may volunteer to return the unused profits of lending money it creates out of thin air to the government, but the shareholders are the National Banks and not the people in whose name the money incurs an obligation, the taxpayers of the United States.
If the Federal Reserve, as it has in the past, sets off to destroy the value of the currency by “borrowing money into circulation” (how the money is created out of thin air), the sad truth is that government has given up the ability to stop it.
But far worse, is that there is no free market in the shares of the Federal Reserve, a private corporation. If Congress wanted to re-assert full control of the Fed by purchasing its stock back, how would you “mark to market” the value (in terms of dollars) the company that has the monopoly on creating dollars?
The dirty secret here is that Congress and spend-happy presidents are addicted to the river of money that this illicit structure makes possible. The Federal Reserve, and supporters of fiat money/central banking, hoodwink us into thinking we are better off with deliberate inflation. What else should we call a “targeted” rate of inflation of 2%? It makes possible borrowing without ever having to repay. Why repay when you can inflate debt away?
But what happens when the Federal Reserve creates money? It is counterfeiting a proportionate fraction of our wealth, and to this extent, when the Fed creates money, it allow government to purchase goods and services from the very citizens who created the wealth upon which the money supply is based. Because government benefits when it counterfeits tokens of our wealth, the Federal Reserve facilitates grandest theft of private wealth in human history.
No Big Spender nor supporter of big and Bigger government will give Paul’s bill the time of day.