The Federal Reserve is not a BANK and it is not controlled by other banks. Granted the charter banks that were initially to fund the Fed bought shares in it and do receive limited dividends from it, but because they own shares in the so called "bank" does not mean that they control its policy or can rewrite its charter, which is to "SERVE THE UNITED STATES."
No real bank takes all of its profits at the end of the year and gives it to the Government. The Fed does because that is what it is supposed to do.
Have you ever seen a bank do that? Come on, get your act together and stop pretending to be a dunderhead! The first few times it is amusing to read such silly nonsense as the reverent Ron Paulites broadcast and print and I did laugh at it. When they pull that nonsense out of the Gold Lobby "Buy Gold! It Will Save Your Life" school and broadcast that tripe as if it is a new revelation from God, it gets very boring after a while. Remember, in Revelation, God kills most everybody with various calamities sent down from heaven. In the Gold Lobby world they get to rip everybody off (of their savings). In either case the people are screwed, but in the case of Ron Paul, we can disavow the nonsense and just wish him away. Out damned spot!
Ron Paul says that Obama should put "his pal" Corzine in jail, and since he hasn't, Obama should be removed from office. Obama routinely does not sentence people to jail. Normally the justice system does that. What crime is Jon Corzine guilty of? From what I can see, he is guilty of mismanagement, but that is not a crime. It just proves (to date) that he is incompetent at management. The same can apply to all of the multi-millionaire Corrupt Bankers who mismanaged Trillions in dollars and received bailouts just as Bush was leaving office. Until you can charge and convict them of a crime, you can not incarcerate them. I am certain that Obama would like to see all of those Fat Cat Corrupt Bankers in prison. I would like to see the most corrupt among them hung if we can define what they did as treason.
I want to change the Constitution to deal with this type of "mismanagement" and punish such corruption with the death penalty because what the Big Bankers did for seven years of the recent Bush administration is a form of Treason against the people of the United States. How is that you ask? Simple, we bail the corrupt bastards out on a regular basis. I want it defined in the Constitution because I want to make it Ex Post Facto so we can try them all for their treasonous actions in the past dozen years. We would end up hanging almost everybody in the Bush administration from what I can see. Never before in world history was a political administration so totally corrupt! Almost every Big Bank across the nation was in on the money grab during the last seven years of the Bush administration. There was no ethics or morality whatsoever as long as Bush was in office. I'll emotionally support a civil war before I'll see those corrupt bastards back in office again. The Criminal element in this country needs to be put away. Why anybody would want to see those disgusting crooks back in power again, is beyond understanding.
The FED saved us and the world from total collapse and a 100 year Depression. Ron Paul accused the Fed of Secret deals. There were no friggin' secret deals. Everything was out in the open. I read about the loans to the IMF in the newspaper before they were happening. Both Bush and Obama asked for loans from the Fed to the IMF and to major international banks to prevent a global collapse. That is what the Fed is there for, though it was initially intended to serve the United States. (Initially for the US, but now we realize that we can help the world, too.) Without the Fed we would be in a horrific Depression many times greater than the Great Depression of the 1930's.
Grossly inane comments about devaluing the currency show a total lack of understanding of how money is valued. Ron, you need to study some elementary economics.
A tremendously productive country like the United States (Manufacturing and Agriculture and Natural Resources and Scientific Innovation) has its money valued by its productivity on the world stage. As I have explained to you and your gold lobby gang many times now, our money keep going up in value against the world currencies because we are more productive than those countries. That has gone on ever since we created the Fed and then realized that our currency would go up and up and up in value if it was not tied to a commodity. Once off of that silly link to Gold, we have soared compared to other currencies. None of the other industrialized countries would ever let the dollar fall in value compared to their currency because that would mean that we could sell our products for a cheaper price than they could and we would have the world's markets under OUR control and the other countries would all be in severe Depression with all of their workers out of work. Currencies should be free to float to prevent a situation like that. Note that as Japan gets further and further into debt that their currency keeps going UP in value. Ron according to you, Japan's currency should have collapsed 20 years ago. Why does it keep going up? That is simple, it is because per capita their people are more productive than us right now. Of course, the reality of Fukushima has not set in yet. We will see what their future holds.
I'll explain a few more things to you here. The Fed has gradually learned over the past ten decades (roughly the past century) how it can be most effective. The Bush Stock Market crash of 2008 was nasty. It was caused by a lack of faith in the overall economy. The initial fall of the stock market causes more lack of faith and a further sell off. Stocks were initially overvalued because of the artificial economy we had from the outrageous increase in house and business property prices. The inflated prices caused people to pull money out of their money machine (their house) and spend it. Remember we are a service sector economy for most (70%) of our transactions in the country. (Manufacturing makes up about ten percent of our economy.)
Spending money (even money that we did not have) will cause a temporary boost to the economy. We had that temporary boost because the Corrupt Bankers were refinancing mortgages with no restraint. They made no effort to see if the money could be repaid. Nobody was even checking to see if people were employed. Then the Corrupt Bankers started writing Second mortgages for Home Equity Loans (that in many cases could not be paid back as well) and people were spending more and more and more. Many of them did not have the capacity to pay that money back, but they simply did not care because the money was free and they could just walk away from their homes if they got too far into debt. (People put locks on their doors, not because that will keep a determined burglar out of their house, but because they want to keep the neighbors honest. The corrupt banks with their total lack of control on lending to anybody created thieves out of a lot of our neighbors, but it was legal thievery because we allow for personal bankruptcy.)
Eventually somebody had to pay the piper for all of the crazy loans that could not and would not be paid back. That somebody was "We the People of These United States" through the Fed. That is if we ever want to pay the Fed, since we can carry that debt as a ledger entry because we effectively do not have to pay real interest on it. Remember, the Treasury pays the interest to the Fed on bonds that they hold and at the end of the year the Fed deposits that money back in the Treasury. What a wonderful system we have! Tell me again why you want to do away with it?
So the stock market crashed and almost all the major banks were ready to declare bankruptcy and the Fed bailed them out. Yet, the stock market was still crashing. In March of 2009 it stopped and money started coming in and in and in to the stock market. Some of that money came from the Fed in open market purchases of stocks to stop the panic. If the Fed did not step in, that bottom that we had in March might not have been seen until years later. Once it was clear that we hit a bottom, the foreign money that was sitting on the sidelines came in.
What foreign money, you ask? Simple, the money we deliberately try to put into other countries hands. (Yes, we do that on purpose so they will buy into America.) That money overseas adds to our stability and our growth here in the United States. Amazing how that happens. Let's see you are a foreign bank. You have a Billion Dollars American and you want a good return on that money, so you buy American Stocks because they are way undervalued. Yep, deficit spending does have its advantages. You end up getting the other countries of the world locked into the American economy and they actually want to see our companies prosper. Yep, it is absolutely amazing!
And that is exactly what happened after the Fed got the panic to cease. Not only that, but the Fed bought stocks to keep the upward momentum going so we could recover 75% of what was lost in the Bush Crash. Remember that the stocks were initially overvalued so the point that we returned to was a practical stopping point. The Fed was no longer buying stocks once we reached that point, but it was still buying bonds to keep the interest rates low. Low interest rates inspire business investment once people get over their fear. As it was the low (The Fed buys bonds at higher and higher rates thus lowering the interest rate) interest rates on Bonds as well as the low overnight rate set by the Fed for the banks allowed the banks to make SAFE money. They too borrowed low interest money and bought into the rising stock market. And they all gave themselves bonuses because they were so smart.
We had two banking panics and stock market sell offs before the Fed was created. It was created because of those panics. We did not use the Fed correctly during the stock market crash in 1929, but we learned. In fact, the man who is the expert at knowing what mistakes were made by the novice Fed management team in 1929-1931 is a fellow by the name of Bernanke.
What position does he hold? OMG! Amazing. The one man that we most needed was in the right place in 2008. As best I can tell, that genius saved the world. Not just the United States, but the whole world.
Ron, wake up and smell the coffee.