The following is a message from Alan Greenspan’s “vaunted Federal Reserve” to the “Average Man.”  (Hat-tip to LeMetropoleCafe.com for the lead.)  (photo)

On January 17th, 1978, Federal Reserve Chairman Arthur Burns stated from the meeting transcript (emphasis mine):

“You know, the American public, in contrast to some or many of our politicians–perhaps most of them–is very deeply concerned about inflation. People all over the country have been asking themselves the question:

“What can I do to protect my family? What can I do to protect my children, my family, and myself against the ravages of inflation? And gradually the thought has evolved and is spreading rapidly that, on the negative side, putting money in the bank or a savings and loan account is no protection.

“Buying bonds, Treasury bonds or corporate bonds, is no protection. Buying common stocks is no protection. It used to be a major protection but it no longer is.

“Then what is left? Well, gold or paintings. But the average man cannot invest in gold; he doesn’t know how. It’s not something he’s accustomed to. Likewise with paintings. Continue reading →

The direct cause of soaring prices is printing too much paper mon­ey; the direct cure is to stop printing it. The indirect cause of inflation is government over­spending and unbalancing the bud­get; the indirect cure is to stop overspending and to balance the budget.  FULL ARTICLE

If the world population widely understands the above and begin to both acquire the physical metal and clamor for the restoration of gold and silver as honest money, governments and central bankers could very well lose what is amounting to a stranglehold over the global economy. The world would realize that central banks are not needed whatsoever.  FULL ARTICLE

He’s back and in denial in a March 11 Wall Street Journal op-ed headlined: “The Fed Didn’t Cause the Housing Bubble.” He lied, the way he did throughout his career and for 18.5 years as Fed chairman. How else could he have kept the job, be knighted in the UK for his “contribution to global economic stability, wisdom and skill,” then afterwards be extolled by the Money Trust he enriched. FULL ARTICLE

Contrary to Greenspan, we can conclude that it is not long-term rates as such that fueled the bubble but the loose monetary policy of the Fed.  We can also conclude that the so-called savings glut in emerging economies had nothing to do with the last economic boom or the current economic crisis.  The only institution that can set in motion the expansion of money and a false boom is the Fed. FULL ARTICLE

In his eighteen year term as Fed Chairman, Alan Greenspan orchestrated the greatest expansion of speculative finance in history. Through it all, he presented himself as a disinterested economist, as a scientist quoting the laws of physics. He wasn’t. FULL ARTICLE

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy. FULL ARTICLE

Ron Paul’s opening statement at the House Financial Services Committee hearing on January 13, 2009.

Watch it:

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We are at an economic dead-end and those in power are in denial.  The truth is our economic problems are due to loose monetary policy, central economic planning, and the parasitic expenses of government.  Unless we assess these problems honestly, we unfortunately have a long way to go until, like the junkie, we hit rock bottom. FULL ARTICLE

As in the case of money-printing policy, if the pool of real savings is declining, massive government outlays cannot revive the economy; on the contrary, they will make things much worse. The only way fiscal stimulus could “work” is if the pool of real savings is still growing. The increase in economic activity when the pool of real savings is expanding is erroneously attributed to the government’s loose fiscal policy. If the pool is shrinking, real economic activity will continue to decline – regardless of any increase in government outlays. Again, government is not a wealth-generating entity; the more it spends, the more it takes from wealth generators, thereby weakening any prospects for a recovery. FULL ARTICLE