Posted on 11/05/2010 8:53:14 PM PDT by blam
Where is the constitutional authority for these idiots to attempt to manipulate the economy ?
Maybe because I haven't received any of it. If I had it, I'd spend it.
It is time to turn cash into hard assets.
"I think it's the carburetor," said my wife.
"It can't be the carburetor," I stubbornly replied.
"Why can't it be the carburetor?" she inquired.
"Because," I boldly asserted, "I can't fix a carburetor."
Well, that depends on where you stand on delegation of powers (I think it's unconstitutional).
Congress has the (sole) power to coin money and regulate the value thereof, and also to emit bills of credit.
These powers were delegated in 1913 to the Federal Reserve.
But prior to 1913, the money question was the #1 or #2 question in most Presidential elections, and between the parties.
Congress, using its power to regulate the value of money and to emit bills of credit, was constantly manipulating what we now call "the economy", even though, then as now, they were idiots.
So, the authority to do these things IS in the constitution, except it is supposed to be exercised by idiots who stand for election every two years rather than by idiots who we do not control.
There is none.
I’ve not seen any basis for the government to do much beyond manage its own money, which it only possesses temporarily while it does the people’s work.
Jumped track, eh?
Thats for sure. I've been buying food.
Hard assets like food, guns, ammo, water purifer, household items, toilet paper, extra shoes, good clothes....
My Preparedness manual can be download at:
http://www.mediafire.com/?ars5bsi2p6foery
Congress gave them the power to discount paper in the enabling legislation of the Fed. That tool used in sufficient size will certainly affect the economy.
“1 Paragraph 1 as amended June 21, 1917.
1 “Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Federal Reserve Board to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural products, or other goods, wares, or merchandise from being’ eligible for such discount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States. Notes, drafts, and bills admitted to discount under the terms of this paragraph must have a maturity at the time of discount of not more than ninety days, exclusive of days of grace: Provided, That notes, drafts, and bills drawn or issued for agricultural purposes or based on live stock and having a maturity not exceeding six months, exclusive of days of grace, may be discounted in an amount to be limited to a percentage of the assets of the Federal reserve bank, to be ascertained and fixed by the Federal Reserve Board.”
http://chestofbooks.com/finance/banking/Organized-Banking/Powers-Of-Federal-Reserve-Banks.html
Thank you for providing this information.
Where is the constitutional authority for the congress to invent powers they don’t have?
They may have the power to mint the coin and borrow money, but not print $trillions out of thin air.
They didn’t use constitutional authority to cause the recession and they won’t use it for the ‘recovery’ oops, I meant total collapse.
Thank you, sir, for the excellent resource.
The sad thing is that hard assets - like stored food, metals, etc. have such little economic multiplier effect. The result of such a movement is a race to the economic floor.
Stop putting inflation into the system (boom) and it will recover, after first going through deflation (bust).
The longer the 'boom' the longer the recovery' (bust)is going to take.
The FED has one job, create a stable price level, ie a stable framework for the economy. They can not do anything else. Putting more green pieces of paper in circulation does not create any more land, labor or capital [TOOLS].
So far Bernanke has done a good job and there has been no major deflation ala 1930 to 1933. And while there are inflationary worries, the price level has generally been flat. So he has done his job, but he must be alert to inflation beginning.
The way out is to stimulate production via tax reductions and reduced government regulation. Clearly we have the wrong crowd in the White House and maybe the Senate for what this situation requires.
Why would Ben Bernanke do this? Because he has no choice. The Fed isn't a free agent any more, if they ever where. Tim Geithner and Goldman Sachs are calling the shots, and they don't give a rat's rear end about America.
I don’t know that Congress is inventing a power that they don’t have. They have the power to regulate banks, and banks by their nature create credit money. When that’s done by your local bank you don’t notice it, when it’s done in the aggregate by an entire banking system the numbers get real big.
The “out of thin air” appearance is what happens when the Fed discounts Treasury paper. It exchanges liquid money for illiquid Treasury paper. It is more a change-of-state situation than a creation-out-of-nothing.
What people rarely understand is that the problem originates with Congress raising the debt limit. The national debt can be looked at as the largest measure of the money supply. Raising the debt increases the money supply. The Fed simply determines how much of that money supply should be in liquid money versus illiquid Treasury paper. Before there was a Fed this was done by the uncoordinated actions of individual banks who would issue money against Treasury paper. Sometimes they even printed their own currency.
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