Silver here. Claire has been very kind to lend me her soapbox. It is a pleasure and privilege to address her audience of freedomistas and freedom outlaws.
I’ll contribute to this blog from time to time, but most of my efforts will be in the new forum. I’ll cover money, free-market economics, business, taxation, commerce, a few other areas where I have some expertise.
There was some good, fun news recently, and a number of free-market/freedomista (they are related!) web sites picked it up. The Federal reserve created a Facebook page,***** (dire warning below) and the comments are overwhelmingly negative. Zero Hedge has a good summary. Every fed post has received hundreds of negative comments.
I’m expecting the page and/or comments to be put down the memory hole, so I tried to save a sample of the torrent of criticism and abuse hurled at the fed in thousands of comments. One post, beginning with the question What economic goals does the Federal Reserve seek to achieve through its monetary policy? ***** generated over 1,000 comments. I scrolled through over 100 pages of them, and couldn’t find a single positive one. Snark was common (Steven Kennedy: Quick question! Im a noob at this but, I’m trying to take over a country through monetary enslavement and currency destruction…. Any pointers?) as was direct refutation (Megan Porter: No you don’t want to promote a strong U.S. economy, your organization is one of the single biggest causes of devaluing the U.S. Dollar. You shouldn’t exist. There is nothing “federal” about you, you are not a government organization. People are waking up and wising up to your lies.) along with plenty of insults, including some ASCII graphics that I hadn’t seen since the 1990s.
Why is there hope? This overwhelming negative response to a feeble attempt at fed propaganda shows that people are becoming educated about the fed, about money, and what is being done to them. Has been done to them, to all of us, for over 100 years.
These topics, the nature and creation of money, have never been very popular. That has enabled the swindle to persist. The fed Facebook debacle shows that something has changed. Ron Paul’s books, essays, legislative efforts, presidential campaign, and especially his “audit the fed” bill introduced these concepts to millions. Sites like Mises.org and LewRockwell.com are tireless promoters of free-market economics and relentless critics of the fed. Whatever the cause, whatever the source, the fed no longer commands respect or even tolerance.
The blunt truth is that the federal reserve is a giant money pump. The money pump transfers wealth from the productive class and the poor to the richest of the rich. The money pump works extremely well, and has been in operation for a full century. It is no accident that today the 1% control such an outsize and ever-increasing fraction of all wealth. The system isn’t broken, it is working exactly as intended. Thank the fed.
The fed has only one real power: creating money from nothing. The new money goes to politically favored parties: the government itself, banksters, the military-industrial complex, the medical-industrial complex. They get to spend it first, snapping up resources that they did not earn, which causes prices to be bid up. That’s what money really is: the power to command actual resources.
The process of prices rising in response to the newly created money is delayed. It is also uneven and happens to different degrees in different sectors of the economy. In some cases housing gets bid up while gold and food stay largely untouched. In other cases the price of tulips, gasoline, bonds, or stocks rise. In the 21st century we’ve seen a tech stock bubble, a housing bubble, an oil price bubble, an enormous bond bubble, and presently a stock price bubble, college loan bubble, and auto loan bubble. It is impossible to predict in advance where the money will go, but the money pump ensures that control of real resources flows relentlessly to the rich and powerful.
This can’t go on, and the insane zero interest rate policies of the fed will not end well. When enough people learn and understand what the fed really is, what it does, change will come. That’s why I see hope in the comments on the fed’s Facebook pages.
***** Warning! Danger! Facebook is to privacy what pins are to condoms. I’m armored up as best I know how and it still gives me the willies to go there.
Good to see you here, Silver. Been missing you at TMM. 🙂
Yep! Welcome, Silver. Very pleased to have you here.
Many may remember that Silver was one of several who shared my old Wolfesblog back in the day. Sharing wasn’t possible at BHM of course, but many times in the BHM years I wished for a few of those old companions. I’m especially glad to feature Silver’s well-known expertise once again.
Good, indeed, to have some knowledgeable voice on the subject.
“These topics, the nature and creation of money, have never been very popular. That has enabled the swindle to persist. The fed Facebook debacle shows that something has changed.”
Bailouts, eminent domain and job insecurity have added to a lot of increasing dissatisfaction in the past few years, as well as corruption in government (all levels), and the ACA fiasco – to name but a few reasons. The middle class is starting to wake up from their comfort zone: the more people being trapped in a “lower/poor class,” the faster they are facing reality.
Unfortunately, Pat… all too many of those people who seem to be awakening to the scam actually still believe that if they just elect the “right people,” government will stop doing those things and actually protect their “rights.” Not happening.
When they come to realize that this non-voluntary government has no legitimate authority over them, and is totally incapable of “fixing” the mess they’ve made for these hundreds of years… then maybe we can hope for liberty and justice.
Not so much “the right people” any more. (This election seems to be inoculating folks against that idea.) I keep hearing, “Just a few more regulations.”
The Federal reserve created a Facebook page
Love to meet the former employee who thought that one up.
He or she is almost certainly still there. Bureaucrats survive. That’s what they do.
Accountability for screw-ups is a free market process. If the employees of the fed were punished for abject failure, they all would have been fired in the 1970s, assuming they survived the 1930s.
Hurray! Glad to see you here Silver!
I posted an extremely similar thread at our old stomping grounds. Guess how many replied? Yup. Zero. Looking forward to conversing with you at the new place.
At some point, for me at least, a basic primer on the makeup of the Fed or a recommended link to such would be helpful. There seems to be considerable controversy as to who and what are involved. This site http://land.netonecom.net/tlp/ref/federal_reserve.shtml had a very detailed listing, but now Firefox can’t find the server.
[…] The money editor at Ms. Wolfe’s new place looks at the Fed’s recent attempt at social me…. […]
God warns us against them in Psalm 146:3.
Even if “none of the above” ran for president–and won–nothing would change. The careerists in Agriculture, Commerce, Defense, Education, etc. will hardly be inconvenienced by the lack of official cabinet secretaries. They will continue to issue and enforce new regulations and penalties.
The Supreme Court, black-robed bureaucrats, will “interpret” the constitution and command the GS-15s to keep on
meddlingdoing their jobs. Government economists in the Federal Reserve will, at a keystroke, produce shiny new bank deposits whenever their comrades run short. (“Margaret Thatcher be damned”).
And most americans will breath a sigh of relief. Because they never read Psalm 146:4.
Is it anything like:
While the public reaction to the Fed’s maladroit foray into social media is indeed gratifying, I doubt that many respondents understand that the Fed is not the disease, it is merely the primary symptom of the disease. The disease is the notion that provision of money must be a State monopoly – or, as Robert Gore at Straight Line Logic (highly recommended blog, BTW) put it:
The only rational “monetary policy” is for the government to get out of the money business entirely (governments have repeatedly demonstrated they can not be trusted with any monetary role) and let private individuals, businesses, and markets decide on what will be money and how it will function in the economy.
Yay! Silver is back! During my early days on TMM I would actually cut and paste some of Silver’s words onto my Word documents just so I could go back and read, re-read, and read again. I’m constantly amazed at how much info is packed into a few short paragraphs. Looking forward to continuing my economy education.
Yes! Glad to read Silver here!
“Vogons are one of the most unpleasant races in the Galaxy. Not actually evil, but bad-tempered, bureaucratic, officious and callous. They wouldn’t even lift a finger to save their own grandmothers from the Ravenous Bugblatter Beast of Traal without orders – signed in triplicate, sent in, sent back, queried, lost, found, subjected to public inquiry, lost again, and finally buried in soft peat for three months and recycled as firelighters. The best way to get a drink out of a Vogon is to stick your finger down his throat, and the best way to irritate him is to feed his grandmother to the Ravenous Bugblatter Beast of Traal. On no account should you allow a Vogon to read poetry at you.”
Good to see you, Silver!
Shel, it’s somewhat dated, but G. Edward Griffin’s The Creature from Jekyll Island” is still the best book on the Fed that I’ve ever read.