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Why the Fed's 100th Birthday Could Be Its Last
Money Morning ^ | Peter Krauth

Posted on 12/03/2013 8:30:16 AM PST by Vigilanteman

On December 23rd, the Federal Reserve will turn 100 years old.

We can look back on its few successes... but its many failures far outweigh any positives it may have achieved.

What's at stake now is the Fed's future. And it looks bleak.

In fact, the Fed won't even exist in 100 years...

America's First Three Central Banks

Central banks and fiat money have been a major point of contention ever since the founding of America.

Between 1775 and 1779, as the colonies delved deeper into rebellion, the fiat money supply grew by over 5,000%.

Within just four years, the colonial currency, the continental, lost more than 99% of its worth. It soon stopped circulating altogether, hence the phrase "not worth a continental."

America's first central bank of the time, the Bank of North America, was organized by a member of Congress. Chartered in 1781, it lasted barely a year as confidence in its inflated paper notes plummeted.

As the Constitutional Convention approached in 1787, most delegates were staunchly against fiat money. Recent experiences fresh in their minds, these guys knew exactly why.

Jefferson said: "A private central bank issuing the public currency is a greater menace . . .

(Excerpt) Read more at moneymorning.com ...


TOPICS: Business/Economy; Culture/Society; Extended News; Philosophy
KEYWORDS: fed; money; treasury; tshtf
Interesting read . . . but take with a grain of salt.

Keep in mind, however, that this is a fairly mainstream financial website, not the tin foil hat stuff . . .

1 posted on 12/03/2013 8:30:16 AM PST by Vigilanteman
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To: Vigilanteman

I, for one, call for a comprehensive outside audit by a politically unconnected respectable accounting firm to examine the Federal Reserve’s ‘books’ and to explain to me exactly how they legally addressed such items as purchases of foreign bank equities (unsecured), loans to foreign banks (unsecured), unsecured loans to US brokers and trading companies and continuing expenditures to the tune of $85 billion dollars per month for the last 4+ years to buy T-Bills and equities from the US Stock Market.

This is all Obama. All criminal.


2 posted on 12/03/2013 8:35:56 AM PST by Gaffer
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To: Gaffer

While we’re at it, I’d like to see the federal government’s books audited as well.


3 posted on 12/03/2013 8:37:54 AM PST by null and void (I'm betting on an Obama Trifecta: A Nobel Peace Prize, an Impeachment, AND a War Crimes Trial...)
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To: Vigilanteman

I suppose it could meet its end when the economy trainwrecks so badly that elected politicians have no one else left to blame.


4 posted on 12/03/2013 8:39:15 AM PST by Buckeye McFrog
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To: null and void

Since Obama was immaculated, there really hasn’t been a budget, or books for that matter. He’s using this Fed monthly $85 billion purchase (I believe illegal) to finance the extra $1+ trillion in entitlements and to placate the stock market and bond holders.

I actually believe there is no accounting. If there is, it is shuffled to the bottom of the priority pile and never thought of.

We are in some deep, deep financial kimchee here, and no one seems to care.


5 posted on 12/03/2013 8:43:10 AM PST by Gaffer
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To: Buckeye McFrog
I think you nailed it, Buckeye. There will be a hell of a lot of finger pointing between the financial elites and the political elites. They've enjoyed a great symbiotic relationship of raping the middle class but, at some point soon, that alliance will begin to unravel.
6 posted on 12/03/2013 8:43:43 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Vigilanteman

Money laundering for TOTALITARIANS ALERT!

DISMANTLE the FED.


7 posted on 12/03/2013 9:05:30 AM PST by PGalt
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To: Gaffer

>>a politically unconnected respectable accounting firm<<

Where on this earth do you expect to find a politically unconnected respectable accounting firm?


8 posted on 12/03/2013 9:17:46 AM PST by B4Ranch (Name your illness, do a Google & YouTube search with "hydrogen peroxide". Do it and be surprised.)
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To: Vigilanteman

From Peter’s lips to God’s ear!!


9 posted on 12/03/2013 9:19:30 AM PST by Dick Bachert (Ignorance is NOT BLISS. It is the ROAD TO SERFDOM! We're on a ROAD TRIP!!)
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To: Gaffer
how they legally addressed such items as purchases of foreign bank equities (unsecured),

When did they ever buy foreign bank equities?

loans to foreign banks (unsecured),

They never loan without collateral.

continuing expenditures to the tune of $85 billion dollars per month for the last 4+ years to buy T-Bills and equities from the US Stock Market.

Treasuries and guaranteed MBS, not stock.

10 posted on 12/04/2013 7:47:44 PM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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