Wall Street or the Federal Reserve?

0 Posted by - December 5, 2011 - Career & Business, Commentary, Commentary - Guest, Economics, Money

171743 occupy wall street 300x200 Wall Street or the Federal Reserve?*Written by Jared Grifoni of the Libertarian Party of Collier County. Who also has his own blog at Self-Govern. Please check out and support Jared’s blog for his collection of other stellar articles.

The Occupy movement has expanded across the country and the world since the original September 17, 2011 Occupy Wall Street protest began. The Occupiers have been protesting the expanding gap between rich and poor, the richest 1%, the corporate bail outs, and so on. Unfortunately, it seems like while the Occupiers are genuine in their desire to find answers no one at these protests is actually asking the right questions.

We need to ask where all that bail out money came from in the first place. What system allowed the federal government to hand over trillions of dollars to these corporations, both foreign and domestic? I hear the Occupiers stating that the gap between rich and poor has gotten too large. How did that happen? Is “capitalism” really at fault here?

The Federal Reserve system is what allowed the federal government to issue bail outs to the too big to fail banks and other corporations. A recent audit of the Fed showed that the Fed gave 16 trillion dollars to foreign and domestic entities at 0% interest. Where did that money come from? It is worthless paper that can be created by the Fed at their whim. This affects all of us by an inflation tax that we suffer with every day and with every transaction we make. These too big to fail entities have first access to all this newly created money so they get the benefit of the dollars BEFORE the inflation sets in. So, these companies can then use that money and take advantage of the system and thus create more wealth while the rest of us are now paying double at the grocery store compared to what we paid last year.

Capitalism isn’t at fault here. Crony capitalism/corporatism and a fiat currency is what is at fault. It is time to end the fed. Occupy Wall Street is a good start but once people start realizing the true cause of the economic problems it will be time to Occupy the Fed. Wall Street has been able to use the current system to their advantage, that much is certain (how many of us would be able to secure billions in loans at 0% interest just as we were about to declare bankruptcy?), but we won’t be able to eliminate this problem by destroying private enterprise and taxing corporations to death or guaranteeing jobs and education as human rights. The only way to prevent runaway inflation and a worthless dollar that suffocates our economy is to take the printing presses out of the hands of the Federal Reserve and this will make it far more difficult for corporations to get sweetheart deals from corrupted government officials on the backs of the American people.

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” — Congressman Louis T. McFadden in 1932 (Rep. Pa)

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