Alice Rivlin, a former vice chairwoman of the Federal Reserve, packed the house at the Seminars at Steamboat forum Aug. 21 with her topic, "The Future of Capitalism." I had no false hopes that a Keynesian big-government insider would have suddenly had an epiphany and embrace free-market capitalism.
The idea that capitalism is responsible for the economic crisis we now suffer from is completely without merit. Free-market capitalism requires sound money and a minimum of government interference. We haven't had sound money since the Federal Reserve was created in 1913, and we have had growing government intervention in the economy since the last attack on capitalism - FDR's New Deal. Mrs. Rivlin did concede that government policy may have played a role in our current crisis, but her version was a lack of regulation.
Mrs. Rivlin cited the myth taught in government schools that the Great Depression was caused by stock market speculation. Absent was the part about where the credit explosion came from that fueled the speculation - bad judgment and fraud. Like today's "Great Recession," the Fed created the roaring '20s bubble by increasing credit at below-market interest rates, geometrically expanding the money supply through the Ponzi scheme called fractional banking.
It is not by accident that our socialized schools do not teach our children about money, the real story behind the Fed, the inflation it creates and the devastating effect it has on the citizens. It is from the Fed's manipulation of our fiat money system that politicians and the politically connected derive their power
It is imperative that the American people understand money and the Fed if they are to have any hope of restoring their freedom. The Federal Reserve is not federal, and it does not have reserves. The Fed is a cartel of private bankers who have been granted the monopoly to create money out of thin air by a corrupt government. Having a monopoly to create money out of thin air is a good business to be in. The Fed was spawned after private banking interests paid for Woodrow Wilson's campaign. Upon taking office, Wilson signed the Federal Reserve bill, delegating Congress' duty to coin and regulate the value of currency to a private banking group. Constitutional sound money restricts the growth of government. An unconstitutional fiat money system facilitates the unlimited growth of government. This is done by debasing the currency, secretly confiscating the wealth of the people through the insidious inflation tax. For generations, our socialized schools cite the mantra that the Fed was created to stabilize the economy. Real history proves that the Fed has utterly failed to accomplish its stated goals. The Fed is responsible for the crashes of 1921 and 1929, followed by the Great Depression of 1929-39, the crashes of '53, '57, '69, '75, '81, Black Monday in '87, the Dot.com bubble and collapse, and now the Great Recession (if not Greater Depression). It is the Fed that has facilitated the growth of a leviathan government and the corporatism that has bankrupted our country.
Thomas Jefferson said, : "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks : will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. : The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
A good start is to call Rep. John Salazar and insist that he co-sponsor and push to pass bill HR-1207, Audit the Fed, as well as calling Sens. Udall and Bennet and insist that they both co-sponsor the Senate version of the bill, S-604.