Ron Paul’s Bill To Audit The Federal Reserve Now Has 271 Co-Sponsors

Sorry, have to disagree on the clearinghouses doing a better job in 1907. The clearinghouses were done, finished, out-of-cash. That's when J.P. Morgan was called. It was Morgan's own reserves (and others like Rockefeller) that were used to backstop the failing trusts. Even these guys were running out of cash. The last gasp measure that saved the day was a Newspaper/Clergy campaign to reach the citizenry and instill some confidence. The campaign worked. Otherwise, the runs would have continued. Again, the clearinghouses were cooked before the Panic was quelled.

I'm not arguing that the Fed did even a good job in 1929-33. But, outside of the bank runs during both panics, the comparison is not valid. 1907 was a panic resulting from an attempt to corner the copper market. Great Depression was a global debt-deflation.

TopQuark - I get your drift. And I can see how these topics could tick off a good guy. You have been clear in your words so I will try to do the same.

If I understand the crux of your argument correctly, that there are smart people (the Fed) who spend all their time focusing (like a laser beam) on economic policy, and by virtue of qualification, valorous detachment and time spent, they are more qualified than any other alternative for which you have seen argued. Did I get that right?

Assuming the answer is yes, here is an argument to persuade you to look at my position. I repeat the time honored contention that no man or group of men can devise a system that can deal with the millions of daily decisions that each of us make in the marketplace. The best that ‘man’ can do is ensure no other man is in a position of unfair advantage. Either by coercion or access to information unavailable to his cohorts. Ultimately only the non-person known as the “marketplace” contains the wisdom for the subject at hand.

The Fed should simply determine the demand for dollars and supply or remove that amount, thus keeping the value of the dollar stable. If you want to know how this should be done I would be happy to tell you. (or go here for the big picture and save me the work!: www.polyconomics.com)

The reason this is not done is pretty simple. People are getting rich today (and for many years) with this system in place. A simple transparent solution eliminates the need for a ‘Fed’ in the first place. A computer program could easily do this work. But it would be transparent and thus remove the monetary advantage currently held by those with political/informational access. Asymmetrical information is what keeps the Fed (and Fed insiders) in business. Without it they would wither on the vine.

John Baptiste Say, Jude Wanniski, Edmund Burke, Ibn Taymiyyah, et al have made the historical proposals that inform my understanding. The Fed is insular and more importantly, inherently politicized no matter what it’s supporters/defenders would like to believe. They have one arrow (interest rates) with which to hit two targets (unemployment and inflation/deflation) and will never publicize in advance what decisions they will make. It is no wonder why they are not succeeding.

To say they can succeed with their mission, this time(!), only with continued secrecy is absurd. They have failed. They were destined to fail. And in doing so have enriched insiders with illicit gains extracted (quietly) from dollar holders all across the globe. Including both of us. I want a scalp. What about you?

Kind regards,
Steeltrap

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