I had posted a similar question about central banks before, and there was no such person called Edward Flaherty, Ph.D. in the Department of Economics College of Charleston, S.C when I searched the website of this college. Thus, I question the validity of this linked article.
Yes, I've read it, and it's an excellent book. "Fullblotter" posts a great point, it's the FRACTIONAL RESERVE BANKING model that creates perpetual debt through a fiat monetary system. Google/YouTube "Money As Debt" and watch the animated film. And then you can film your own Candid Camera episode: just watch as you offer a crisp $100 federal reserve note to anyone who can find the phone number for the "Federal Reserve" from the U.S. (Federal) Government Listings in the White Pages. (Don't worry, you won't have to give away any money, as there is no such listed number, since "the Fed" is NOT Federal, and it has no such reserves!)
Pretty creepy and convincing video from a prominent individual. A lot of websites speculate that he was murdered by the financial elite.
5yrtrader: This is exactly the point of a central bank, to control hyperinflation/deflation. With the credit crisis we saw the credit markets seize up, so the Fed injected huge amounts of liqiudity into the system to get the gears turning again. When inflation does start to pop up, the Fed will begin to remove that liquidity so we don't have hyperinflation. ------------------------------------------------------- In that case, what happened in the late 70's. The thirty year treasury bond went to 13.5%. The real truth IMO is that they manipulate the money supply to suit their own ends.
In the early 1970's was the first time currencies were allowed to float freely againist one another, when Nixon took us off the gold standard. Because of the government deficits created from spending on the Vietnam War the US could not afford to stay on the gold standard. The government had to start printing money to pay for the war and cover its deficits. This caused inflation, at the same time we had the Iran oil embargo, peak oil hit in the US (we have never been able to produce more in this country than we did in the 70s) and our economy started to shift away from a manufactoring based economy. So in addition to high inflation from turning on the printing press and going off the gold standard, we had high unemployment, this made it political suicide to raise interest rates. It took Paul Volker, and years of high inflation, to really hike up interests enough to stamp out inflation. This caused a recession during and already tough time in the US, but worked to stamp out inflation and laid the ground work for the great bull market. Thats all for today class. 5yr
The banks have massive funds to lend thanks to the Fed. However, they are hoarding those funds, at least from the public, small businesses and up to a point, large corporations. They are lending to the government, while the government keeps issuing debt obligations (treasury bonds) which the Fed monetizes (with no real collateral or asset). Read it over a few times and try to understand. It's a racket, nothing more, nothing less. It has always been a racket, from central bank inception.
Where do I collect my $100 prize?? http://www.federalreserve.gov/aboutthefed/phones.htm Frequently Requested Telephone NumbersDepartment Phone Number Career Opportunities 202-452-3880 1-800-448-4894 Consumer Complaints Toll free: 888-851-1920 TTY: 877-766-8533 Federal Reserve Banks Freedom of Information (FOIA) 202-452-3684 Inspector General Hot Line 202-452-6400 1-800-827-3340 Main Telephone Operator 202-452-3000 Public Affairs 202-452-3204 Publications 202-452-3245 TDD Line 202-263-4869 Treasury Direct 800-722-2678
to me,that represents the outstanding debt sitting on the banks books,they are hoarding to protect themselves ,possibly foreseeing more uncollected debt in the future,commercial,domestic real estate,..is this over simplified
True, but it questions why some Americans are unhappy with the existence of a central bank, when the rest of the world seems to be OK with it... Here is an article that deals with the question: http://www.counterpunch.org/brown09092010.html
5yr:So in addition to high inflation from turning on the printing press and going off the gold standard, we had high unemployment, this made it political suicide to raise interest rates. ------------------------------------------------------ Wrong interest rates on loans for houses and land got up to 10% and possibly higher in some places.