How the Federal Reserve Is Killing America

The U.S. Federal Reserve was created in 1913 to provide a safer and more stable monetary and financial system. But its actual role today is much more sinister...

It's maddening. Our economy is stagnating. The divide between haves and have-nots is widening every day. There are fewer and fewer good jobs and careers to be had.

And maybe worst of all, according to a survey by the nonprofit Employee Benefit Research Institute and Greenwald & Associates, about 36% of workers have less than $1,000 in savings and investments that could be used for retirement (not counting their primary residence or defined benefit plans and traditional pensions), and 60% of workers have less than $25,000.

What the heck happened?

The U.S. Federal Reserve System is killing America. It has destroyed the economy. It has undermined savers and retirees. It is even responsible for the corruption in Congress.

We have to end the Federal Reserve before it ends America for good.

There's nothing in the Constitution about a central bank. There's nothing "free market" about a central bank. There's no reason for a central bank - with omnipotent power over the creation of money and credit, over employment (which is an absolute joke), over the entire economy, and over Congress - to exist. No reason.

Okay, there is one reason...

The Only Reason the Federal Reserve Exists

The Federal Reserve, America's central bank, exists to serve big banks and Wall Street.

There is no other reason for the existence of the Fed. None.

Central banks exist to backstop banks. They were all created by bankers to serve them.

When banks get into financial trouble (for any number of reasons, all of them having to do with their bad management and greed), if there is no backstopping angel with unlimited (completely made up out of thin air) resources to bail them out, they would shut down.

And they should shut down. Sure, there would be losses. Equity owners would lose, creditors would lose, and some depositors would lose money, too, if they aren't covered by FDIC insurance.

But if banks were allowed to fail, given they were each, on their own, insignificant enough to the financial system - to the whole economy - that they could fail without doing economic damage, they should be allowed to fail. Small banks are still allowed to fail based on this exact principle.

But clever bankers, the masters of the biggest banks in any system (in the United States it was a group of the most powerful banks in America and allied banking interests in Europe in 1913), figured something out - and the result has been profound.

by Shah Gilani

Money Morning