Isn’t it a bit ironic that the U.S. government is going to sue a few of the big banks in America when the government’s policies are part of what caused the housing disaster in the first place? Not only did the government’s policies create the bubble, but the federal reserve’s policies also helped to continually build up and add fuel to the ensuing bubble that would inevitably burst. What’s even worse than that and maybe reaches an even higher level of irony is that the same banks that the government is now suing are the same banks it bailed out to the tune of hundreds of billions of dollars a few years ago. Furthermore, not only are they suing the banks they bailed out, the lawsuit they’re bringing forward is going to cost the tax payers millions of dollars and the banks they’re taking to court might even use the bailout money they received over the years to cover their legal expenses. But what’s even worse is that this step by the “critical thinkers” doesn’t address the issue of central banking and central planning by previous and present political hacks.
Over the rainy weekend that just past, hundreds of sound money advocates gathered at the federal reserve building in Philadelphia, Pennsylvania to protest the existence of the extremely secretive federal reserve that was enacted by Congress just a few days before Christmas in 1913.
Along with protesting in front of the federal reserve building, several individuals such as: Ernie Hancock, Adam Kokesh, Larken Rose, Scott Davis, and Darren Wolfe gave short speeches. After the speeches were wrapped up, we began on our marching route that started out on Market Street and ended at Buffalo Billiards on Chestnut Street. During the march, we handed out hundreds if not thousands of fliers while listening to Jordan Page who was playing live music from a float being pulled along the route in the street that was being escorted by the Philadelphia Police Department.
Yesterday we marched on with our continual journey to restore sound money in America. As we do every year, the concerned patriots across the nation gathered and held end the fed rallies. The federal reserve is a private central banking system that is tasked with regulating the flow of cash & credit in the country. How is it that private banks and the federal reserve can create our money and collect interest on it? Nowhere in the U.S. Constitution does it give the authority to a private bank to regulate, control, print & collect interest on our nations currency. Article 1 Section 8 says the following:
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
In order to answer this question, I’m going to quickly summarise the history of money;
In order to further enrich our lives, people began to trade. If somebody had , say, 2 goats and another person had 2 chickens, it would make sense for them to trade a goat for a chicken. One of the problems that sprung up from this ‘free trade’ agreement between two parties, was that somebody may want a chicken, but the owner of the chickens doesn’t want a goat. To this end, an intermediary (or medium) was needed. It was (and still is) called money. It was observed that some products were used mainly to facilitate transactions but had no other real use than that. Historically this has been gold for large transactions and silver for smaller ones.