The largest debate right now is obviously health care, along with Wall Street and unemployment. People have been treating them as individual diseases that our country has come upon, but the more research I do, the more I realize that they are not diseases as much as they are mere symptoms of a much bigger issue. To understand the problems with the economy we have to dig deeper into the surface of what the economy is; we have to uncover the heart of our economy, the veins, the blood, the Federal Reserve.
The Federal Reserve is our economy; it s our value of the dollar and has intentionally been lost in the debate. There is little information on the Federal Reserve and even less voices talking about it. This has posed a problem mostly because there are little facts about the Federal Reserve and the debate has been taken into the hands of conspiracy theorists and Zeitgeist Movie supporters alike.
Some things to be noted on the Federal Reserve and our monetary system:
‘¢ The Federal Reserve is a neither private nor public.
‘¢ Our dollar is valued by how much is circulating in our country.
‘¢ The government exchanges bonds for currency at interest.
‘¢ The only way to get money into our system is through loans.
‘¢ Only 3% of the US money supply exists in physical currency.
‘¢ The other 97% exists in computers alone.
‘¢ Money from the Federal Reserve is created out of thin air.
‘¢ The government solves problems of inflation by increasing the supply of money by adding more inflation
‘¢ There has been a 96% devaluation in the American dollar since 1913.
‘¢ The last time in American history the national debt was completely paid off was in 1835.
Money is basically a representation of debt. If everyone in our country paid off all of their debt including the United States government, there would absolutely no dollar in circulation.
What surprises me is that there is really only one politician that has spoken out about the Federal Reserve and that is Ron Paul. Ron Paul stated, ‘It was the banking interests that were behind The Federal Reserve Act. They wanted their assets protected.’ He later stated, ‘Inflation isn t rising prices, inflation is the governments program for increasing the supply of money which devalues the currency and that causes the prices to go up’¦ It eventually wipes out the middle class.’
Another thing to note is the recent story that has been circulating about the Federal Reserve denying a voluntary public study proposed by Tim Geithner. “To publish a report now invites comment on that report,” stated Vincent Reinhart who was a Fed monetary policy director.
What are your thoughts on this? Do you have more information on the Federal Reserve? This is something that isn t being talked about enough and whether I am right or wrong, this is something that needs to be researched and discussed.
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The value of money is in its substiitution as a trade medium. Instead of trading an item for an item, we trade and item for money, and trade that money for another item. Since the trade within this country is not limited within its borders anymore, which is quite different than when the Fed was created, to act as if the Fed alone sets the value of the dollar in this day and age is not accurate. Trade, and the value that our trading partners wish to place on the dollar as a trade medium, has as much to do with the value of a dollar as anything else. If our trade partners lose faith in the value of our currency, despite what the Fed says, and refuses to accept our dollars, or will only accept them at a reduced value, then that’s what they are worth. Unless we wish to not trade with the rest of the world and keep everything in house. Then say goodbye to the entire stock of Walmart, get used to walking and riding a bike, and Swiss chocolate… they’re just the tip of the iceberg. Our whole way of life would change. But we’d have sole control over the value of our currency.
If I have a million dollars on a tropical island with no one else on it and nothing to trade it for, it doesn’t matter how much money I have- my money is worthless. No… not exactly. On second thought, I could burn them for a few seconds of warmth.