The Problem With Kucinich's Plan To End The FED
We've discussed this effort from Kucinich in the past:
Watch this clip all the way through. It doesn't make sense. For example, Kucinich makes a reference to a "permanent supply of money, that will not be inflationary." That is complete and utter nonsense. This is the core of the problem if Congress gets rid of the Fed.
The rationale for the Fed's existence is that Congress can't be trusted with the power to coin money, given their penchant for irresponsible spending. The thinking goes that whichever useless party were in power would spend and print without limit (since deficits would no longer exist) as a means to guarantee (buy) their continued existence as the majority party.
So the Fed was created and the Constitutional authority to print our currency was handed to a group of private bankers. The result was that all Federal deficits had to be borrowed and interest paid to the Federal Reserve, all to prevent the destruction of the dollar through wanton spending and printing by Congress via the U.S. Treasury.
However, in the past 4 years, the Fed has completely abdicated their duty and charter to protect the dollar. The Fed now prints with reckless abandon, under the guise of saving the economy, but the money is going to Wall Street and big banks in stealth QE maneuvers (and so-called emergency bailout programs), and NOT to the people.
Without a balanced-budget amendment, why should we trust Congress to be responsible stewards of the U.S. dollar, much as we can't trust the Fed. There would be no limit to printing. Banks and Wall Street might just as easily end up being the recipients of Congressional largesse in the same way they are the beneficiaries of Bernanke's helicopter.
It's a recipe for disaster. I do not trust Bernanke's Fed, and I do not trust Congress. This is the core of the problem with ending the Fed. And it's something that most anti-Fed proponents do not discuss.
What is the responsible alternative to the Federal Reserve that doesn't create a spending monster in Congress? There is only one answer: a balanced-budget amendment to the U.S. constitution. Without it, ending the Fed would never work.
Read more on Kucinich's legislation to end the Fed HERE.
Oct 5, 2011 at 10:41 PM
Reader Comments (15)
This one simple change would level the playing field between the consumer and the banks. It would also create a TON OF JOBS as banks have to evaluate each and every debt restructure application fairly, and that would be a good thing.
a fixed commision rather than annual interest seems to be more than reaonable profit...i.e a bank would get 10 percent of a mortgage as it's fee which is a very generous commission rather than 150% ridiculous fee they get with typical mortgages now....
in sharia, banks are partners of the borrower....and they are bought out after a time for their profit...or they lose along with the borrower....
most importantly, money distribution should be democratic and fair, everyone gets a chance and as they are successful they are given greater access....
the current system means the tools of the bankers have unlimited funds to buy and create the industrial complexes information (news,education), security (military,police), politics, health, energy, etc...the bankers want their tools in charge of the essentials of life and liberty....so they can choke us if we resist...
Jesus rejected satan's offer of dominion over all of mankind (he did not deny satan's claim) and the only time Jesus was violent was with the money changers in the temple....
the rothschild and other families appear to have taken the offer....but there are infinitely greater plans afoot....
Have faith and know that the truth will set us free.
I cant believe some people still don't get it...
The Federal Reserve is a private investor-owned bank. Under fractional reserve banking laws the banks in the US are allowed to create almost 10 dollars out of nothing for every 1 dollar they have on deposit. The power to grant loans and create money this way gives banks a great amount of influence over our society. What the banks fund prospers. What the banks ignore doesn't do so well.
On the other hand, Congress can create money and spend it into circulation as Lincoln did with the "greenbacks" during the Civil War. This saved the country from paying huge amounts of interest on money that would otherwise been "loaned" by banks to the governmant, which would have been created out of nothing. Congress is elected by the people. The Bankers do whatever they can get away with in their own self-interest.
I agree with Dennis Kucinich that governmant created money does not have to be inflationary. Here is why. If the governmant spends money into circulation for goods and services then this will promote the growth of business activity, jobs, and general prosperity. To the extent that the economy grows then the money spent will not be inflationary.
Many people have been influenced by the extreme governmant-bashing of the Libertarians and the so-called "Austrian School of Economics". Don't fall for it! Visit the American Monetary Institute at www.monetary.org
The idea is not need a loan at all. But since we are a loan based economy, at the very least, lets grant some rights to those who need to restructure a debt.
Debt restructuring should not require a default before the debt can be restructured. It's not the money loaned that is the biggest problem, it's the interest being charged on that inescapable loan that entraps people for an entire lifetime.
"The rationale for the Fed's existence is that Congress can't be trusted with the power to coin money, given their penchant for irresponsible spending. The thinking goes that whichever useless party were in power would spend and print without limit (since deficits would no longer exist) as a means to guarantee (buy) their continued existence as the majority party."
{ It must be remembered that these "Jews" that manipulated their way into control over our wealth are from the same group who originally promised to "safe-keeping" of individuals gold, centuries ago. They discovered that only 5% of the people who owned the gold ever demanded to take it out of these "banks" So they decided to loan out 95% of the gold at high interest rates, without the permission of the true owners of the gold. When they got caught, they were driven out of the country. These are the same people we are entrusting our economic future to. They have stolen more money and been kicked out of more countries than anyone else in history. And the method they used to get the Federal Reserve Act passed was even more appalling and unethical. During a Christmas Congressional break (they hate Christmas and Jesus) they met in secret, off the coast of Georgia and passed the abomination that is now the FED.
Is it any wonder now a hundred years later that the "Jews" who have controlled the FED for all of the 100 years of its existence are now the richest people in the world. Did they all of a sudden, in the last 100 years, go from scumbags to the smartest and brightest among us,...or did they use the power of the FED to gain an unfair advantage. You tell me?}
In 2011, economic growth MUST be replaced with more efficiency using less resources. To achieve this, debt restructuring must first require a default. Whomever is opposed to this idea is opposed to their fellow earthling.
Same as it always was, enriching the bankers.
The feds economic growth model is now outdated. People comfortably getting by on LESS is what is best for the planet, and that goes against the whole jobs growth agenda. More people should be working, but they should be working LESS hours per week, not more.
I agree that how much money is created should not be decided by politicians turned into Santas, but it sure as hell should not be decided by banks either. The debt money system and fractional reserve banking must go. There is absolutely no reason society should be forced to give substantial part of the whole money supply to the banks every year just to have money in circulation! (average interest on loans). Money should be created, debt free, by fairly independent government entity that's sole purpose is to keep inflation low and economy healthy. For right now the money creating powers (banks) don't care what happens to the economy. They just care for their bonuses and profits and that is exactly the reason we are in this huge mess and why the banks even can be too big to fail. If big banks would fail, the monetary supply would take so big hit that the coming recession would make great depression look like a picnic.
Kucinich proposal is a big step to the right direction. The money creation power should not be directly at congress, but it should be a independent and transparent government entity under congressional oversight.
Jct: Only if you believe there's already too much money out there chasing the goods, Shift A inflation. When you find out about Shift B inflation, you might change your mind. Find "Big Lie of Economics" hiding that printing money for paychecks backed by labor (Treasury Greenbacks like Lincoln's) fights inflation Shift B.
"Congress can't be trusted with the power to coin money, given their penchant for irresponsible spending"
Jct: Other than wars, name me one thing government spends money on that is irresponsible. Do you fear runaway spending in infrastructure repairs? social services? medical services? police and fire services? environmental services? I say give them a blank checkbook for useful services. Kucinich is the first guy who wants to take the power of creation of money from the private banks and give it to the people to decide whether credit should be created for what bankers want or for what the people want and this guy sees that as a problem because he likes it the way it is?
"all to prevent the destruction of the dollar through wanton spending and printing by Congress via the U.S. Treasury."
Jct: Thus guy doesn't understand that Congress spending poker chips for work doesn't cause inflation, does he?
"why should we trust Congress to be responsible stewards of the U.S. dollar, much as we can't trust the Fed. There would be no limit to printing."
Jct: Much as we can't trust the FED, who else but Congress to be responsible stewards?