[Rushtalk] Greenspan Discusses the End of the Fed
notmyname at thatswaytoomuch.info
Sat Mar 16 15:40:01 MDT 2013
Greenspan Discusses the End of the Fed ... What Comes Next?
By Anthony Wile
An interesting article in Forbes entitled "If
Greenspan Wants To 'End The Fed', Times Must Be
Changing," informs us that the predictions we
made long ago about the
Reserve are coming true. The author of the
article is Nathan Lewis, an economist, former
strategist for institutional investors and author
of a best-selling book Gold, the Once and Future Money.
Our predictions regarding the Fed were first
published in May 2009, and were related to a
congressional hearing that showed Fed
representatives to be woefully unprepared. This
was the first inkling we had that the institution
itself was in perhaps terminal trouble. Here's
what we wrote at the time in an article entited,
of the End? Fed Cannot Account for $9 Trillion"...
We saw the interview with Elizabeth Coleman on TV
and then again and again and again on
youtube.com. It is entitled "Is Anyone Minding
the Store at the Federal Reserve?" and it is one
of the single most astonishing moments (or
minutes) ever manifested or preserved in this
already-amazing digital era. A century ago, when
the powers-that-be pushed through the act that
set up the American Federal Reserve which
basically kicked off the
banking era in America and abroad the kind of
technological ubiquity offered by the Internet
would certainly have been seen as a major and alarming challenge. Well, it is.
The Grayson/Coleman confrontation has to be seen
to be believed, and even then it may not seem
quite believable. How could the Fed, in all its
monied majesty, offer up someone so unprepared to
answer the questions of a single quiet and
persevering congressman? Grayson is a liberal,
legislator a good government type who is fast
making a reputation for taking on government
corruption. He is pro-regulation but has not been
shy about confronting high profile institutions.
He may not want to shut down the Federal Reserve
but he certainly wants to make it operate under
additional scrutiny. And he makes it clear he
believes the Fed needs it. And now Coleman knows it.
Our article continues as follows:
The Fed has survived numerous challenges, but
always these were fairly restricted to
legislators and others that traveled in the Fed's
ambit. There was no chance that the Fed's
inner-most workings would be broadcast to the
world, and that the world would see and comment.
The Internet has changed all that. The basic
trouble with the Fed and with all central banks
is that the work they do is not defensible
within the broader context of democratic rhetoric.
Since the article was published some four years
ago now, the agitation against the Fed and
central banking generally has grown worse, as we
predicted. There is no real support for central
banking. It is a central planning relic of a
bygone age when justifications could be made
about a tiny handful of men running the world on behalf of everyone else.
But the Internet has allowed people to question
and as there is no good answer, the questions
have persisted and the skepticism has grown
along with central banking's incompetence in
solving a Great Recession for which they were
evidently and obviously responsible. Eventually,
I figure it will burst the confines of the
Internet and become a mainstream problem.
It is probably inevitable. And now a further
instance of the gradual deflation of this
social theme has emerged: The most famous Fed
chairman of them all, Alan Greenspan, is
questioning not only the functioning of the Fed
but its reason for existence. His statements,
made in a January interview, continue to resonate
and circulate and recently resulted in the
Forbes article referred to above.
Let's see what Alan Greenspan (according to Forbes) has been saying recently:
"We have at this particular stage a
money which is essentially money printed by a
government and it's usually a central bank which
is authorized to do so. Some mechanism has got to
be in place that restricts the amount of money
which is produced, either a
standard or a currency board, because unless you
do that all of history suggest that inflation
will take hold with very deleterious effects on
economic activity... There are numbers of us,
myself included, who strongly believe that we did
very well in the 1870 to 1914 period with an international gold standard."
In the same January 2011 interview, Greenspan
apparently wondered out loud if we even require a
central bank! When Alan Greenspan starts to talk
about "End the Fed," things are changing.
The article even refers to our friend and Daily
Edward Griffin's The Creature from Jekyll Island
is an excellent account of how the Fed came into
being. The fact that this 1994 book is, today,
the #2 bestselling book in Amazon.com's Banks and
Banking category, the #2 bestselling book in the
Economic Policy and Development category, and the
#4 bestselling book in the Economic Policy
category, shows why crowds start chanting "End
the Fed" wherever
Paul turns up, with no prompting from him.
The article refers to
<http://www.thedailybell.com/floatWindow.cfm?id=679>Money Power itself:
In recent years, any attentive watcher has
noticed that the Fed has been working rather
closely with certain "Too Big to Fail" banks, in
ways that are not necessarily in the public's
best interest. The fact that the Fed is likely
heavily influenced by a certain well-known
European banking family a criticism that
president Andrew Jackson applied to its
predecessor the Second Bank of the United States,
just before he killed it is all the more reason
to eliminate its influence in U.S. affairs.
And here is how the article ends:
As a member of the "keep the Fed" camp in prior
years, it seems to me now that we will most
likely come to that point, in not too many years,
where replacing the Fed will be the best and even
the easiest path ... End the Fed.
For those who think we're too confident about the
evolution of this dominant social theme, please
think about this: The Fed these days is
reportedly buying most or all of US Treasury
auctions and already owns well over US$1 trillion
of American debt. The Fed is buying this debt
because no one else will. That's a lot of unproductive paper to hold.
Not only that, but the US government owes so much
money on its national debt that the Fed must keep
interest rates at almost zero or debt payments
would balloon until almost the entire federal budget would be consumed by them.
This means, like Sisyphus climbing up the
mountain with a rock on his back over and over,
the Fed is doomed to buy US debt at zero percent
for an unforeseeable infinite amount of time.
This is, of course, an insupportable scenario.
And thus, we've pointed out that the dollar
reserve system basically died in 2007-2008 and
later on, Alan Greenspan apparently said something similar himself!
The system, it seems, eventually MUST collapse.
There will be no war, no devaluation, no bailout
that will likely save the dollar reserve system.
Instead there will be ... a change.
The wise men running central banking are probably
as aware of the problems with the dollar economy
as anyone else; in fact, more so. They've even
apparently started a faux movement to nationalize
central banking so as to keep control via the
political system directly (see
article on this topic) but even this movement is probably bound to fail.
Another possibility that is obviously being
considered is the creation of a global paper
currency via the
And finally, the powers that be are probably,
reluctantly, considering a state-managed gold
standard. Greenspan is apparently going to be a spokesman for this view.
We analyze and follow elite memes but it is not
possible at this point to say what exactly will
occur. Best case, a money system emerges that is
NOT controlled by nation-states and resembles
War US system of
banking and money competition generally.
The pre-Civil War monetary system created the
"greatest nation on Earth" and one that has now
morphed into a worldwide empire. But the monetary
system that has accompanied this expansion may
well be ending. What comes next is unknown.
Hopefully it will be freer and fairer than the
central banking structure of the 20th century.
<http://thatswaytoomuch.info/>notmyname at thatswaytoomuch.info
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