The Federal Reserve Monopoly Over Money
by Hon. Ron Paul of Texas (from www.dailyreckoning.com)
"The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation."
(Ed. Note: Congressman Ron Paul of Texas enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency.)
Recently I had the opportunity to question Federal Reserve Chairman Ben Bernanke when he appeared before the congressional Joint Economic committee. The topic that morning was the state of the American economy, and many of my colleagues raised questions about how the Fed might better "regulate" things to ease fears of an economic downturn. The tenor of my colleagues' questions sested that Mr. Bernanke's job is nothing less than to run the U.S. economy, like some kind of Soviet central planner.
Certainly it's true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic wellbeing? Is centralized, monopoly control over our money even compatible with a supposedly free-market economy?
Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued.
The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch of Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference that threatens to impoverish us by further destroying the value of our dollars.
The Feds inflationary policies hurt older people the most. Older people generally rely on fixed incomes from pensions and Social Security, along with their savings. Inflation destroys the buying power of their fixed incomes, while low interest rates reduce any income from savings. So while Fed policies encourage younger people to over-borrow because interest rates are so low, they also punish thrifty older people who saved for retirement.
The financial press sometimes criticizes Federal Reserve policy, but the validity of the fiat system itself is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic or so they believe.
Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars.
Kao podsjetnik na 'dolarsku terminologiju' jedan stari post - na hrvatskom, wow!
Iran and USA: 'Enjoying The Hostility'
Bahman Aghai Diba PhD International Law - Persian Journal
The Islamic regime of Iran and the government of the USA have many points of dispute. The question is: are they interested to solve them? It seems that both sides are enjoying the current mood of hostility due to their reasons.
As far as the regime of Iran is concerned, I think the answer to the above question is definitely no. the Islamic regime in Iran is a failed system. It has failed in economic, political, social and even cultural fields. At the same time, the regime is blaming the USA for all of its problems. If the US is out of this picture, then how are they going to explain their failures?
Some experts and ordinary people in and out of Iran argue that if Iran makes a compromise with the West, the main problems of Iran would be solved. I do not think so, and I believe the Islamic regime of Iran is very well aware of this fact. Which of the important problems of Iran will be solved in case of normalization of the Iran-US ties?
Population of Iran has become doubled in the last quarter of century that the Islamic regime is dominating Iran. At the same time, all governmental and nongovernmental capabilities have remained the same or reduced. What is the relations with the US going to do with the unemployment, hidden unemployment, low level of educations, brain drain, lack of skills, huge number of drug addicts, (one of the highest in the world), inflation, stagnation, stagflation (combination of the inflation and stagnation), depression, rising demands of the young generation, backward industries, old-dated administrative systems, weak agriculture and so on?
The reality is that the relations with the USA will not solve any of these acute and serious problems of the regime of Iran, at least in a quick way. On the other side, the Islamic regime of Iran will lose its "whipping boy".
The regime of Iran, considers the USA as personification of all values that the regime opposes. For the same reason, what it will gain fro the relations with the USA must be so important to compensate such a great loss. The regime needs to defend its policies, suppress the people, violate the human rights, close the newspapers and kill the opponents.
On the other hand, the US also sees good points in hostility with Iran.
Some of them are:
1- The US has difficulty in Iraq. It is a good policy to divert the attention to somewhere like Iran.
2- The Arab states of the Middle East region, are afraid of Iran's plans and they ask for:
A- US protection
B- Buying more weapons from the West
C- Supporting the US policy in Iraq
D- Getting closer to Israel