Rand Paul Attacks the Federal Reserve

Why should these statements by Rand Paul be considered so radical when the media is constantly attacking the corrupt and the wealthy?

Rand Paul wrote an editorial with Mark Spitznagel at Reason.com entitled, “The Federal Reserve is Not Your Friend.”

It begins with what I think is one of the clearest illustrations of the absurdity of our current political system.

Imagine that the Food and Drug Administration (FDA) was a corporation, with its shares owned by the nation’s major pharmaceutical companies. How would you feel about the regulation of medications?  Whose interests would this corporation be serving? Or suppose that major oil companies appointed a small committee to periodically announce the price of a barrel of crude in the United States. How would that impact you at the gasoline pump?

Such hypotheticals would strike the majority of Americans as completely absurd, but it’s exactly how our banking system operates.

The Federal Reserve is literally owned by the nation’s commercial banks, with a rotation of the regional Reserve Bank presidents constituting 5 of the 12 voting members of the Federal Open Market Committee (FOMC), the body that sets targets for certain interest rates. The other 7 members of the FOMC are the D.C.-based Board of Governors—which includes the Fed chairperson, currently Janet Yellen—and are nominated by the President. The Fed serves its owners and patrons—the big banks and the federal government, while the rest of Americans get left behind.

I don’t understand how this can be refuted, or how it can be tolerated by Americans.

In the Constitution we read about three branches of government. Nowhere do we read about our currency and much of our economic power being under the control of an autonomous institution that boasts in not answering to either the President or Congress in the name of “keeping its independence.”

How can this possibly be a Constitutional system?

Bob Allen wrote a little over a year ago:

Why must we end the Fed? Mark Horne nails the evil Federal Reserve System with this conclusion:

“When preparing for the future becomes too difficult to accomplish, people tend to push it out of their minds. They are not failing to save for the future because they don’t think about it. They are failing to think about the future because their government has made it too difficult to save for the future.”

The elite have enriched themselves through immoral economic policies, and force anyone trying to save for the future to jump into the shark-infested pool called Wall Street, where the same entities that feast on “free money” from the Fed, take healthy bites out of our hard-earned savings.

So, you either get essentially no return on your bank savings (with the added risk that the idiots running the place will drive it into the ground, and a “bail-in” will seize much of your cash—see Cyprus), or you invest on Wall Street and get savaged in the games the big banks and investment houses play to manipulate markets with taxpayer money.

I realize many people are not Rand Paul fans at the moment (for many it is because he is the son of his father and for a few it is because he is not enough like his father), but I really would like the Federal Reserve to be an issue in this election. We seem to be on the brink of another Wall Street meltdown. Once again the Federal Reserve will double down on the damage that it has already done as the sure solution to our problems.

We need to fight this corrupt institution. While a few have joined Rand Paul in opposing it, I don’t see anyone else likely to lead in the fight against it.