The quote in the headline comes from Ron Paul, and it should be the goal of every conservative lawmaker in the entire country. When professional politicians tell you that they are in favor of reforming the tax code or reducing taxes a little bit, essentially what they are telling you is that they are perfectly fine with the status quo. They may want to tweak things slightly, but in general they are content with big taxes, big spending and big government. I spent an entire year getting a Master of Laws in Taxation at the University of Florida Law School, and in my opinion the best thing that Congress could do to the tax code would be to run it through a shredder and put it in a dumpster. As I noted the other day, the tax code is now more than four million words long and it takes Americans about six billion dollars a year to comply with it. Those that believe that they are offering the American people a “solution” by proposing to tinker with this abominable mess are just fooling themselves.
The only long-term solution that is going to work is to get rid of the entire steaming pile of garbage. Ron Paul understood this, and we would be very wise to take his advice. The following is the full version of the quote from the headline above…
“By the way, when I say cut taxes, I don’t mean fiddle with the code. I mean abolish the income tax and the IRS, and replace them with nothing.”
If I run for Congress, and I am very strongly leaning in that direction, this is what my position on taxes is going to be.
Of course we are going to have to dramatically change the composition of the House and the Senate in order to get this done, so in the short-term we may have to focus on reducing tax rates and the size of the tax code by as much as possible.
But ultimately, the goal will be to abolish the tax code and the IRS altogether.
We have become so accustomed to an income tax that many of us couldn’t possibly imagine a society without one. But today there are seven states that do not have one, and that includes very big states such as Texas and Florida. And from 1872 to 1913, there was no federal income tax. When a federal income tax was finally reinstituted in 1913, the rates were extremely low. The following comes from Politifact…
The 1913 law imposed a tax of 1 percent on income up to $20,000, for both individual and joint filers. However, exemptions from the tax — the first $3,000 of income for individuals and the first $4,000 for joint filers — meant “virtually all middle-class Americans” were excused from paying, according to W. Elliot Brownlee’s book, Federal Taxation in America. The law also put in place a graduated surtax on incomes above $20,000; the highest rate paid, 7 percent, applied to Americans making more than $500,000 (about $11.4 million in 2011 dollars).
So how did things go for our country during the four decades when there was no federal income tax?
Well, if you regularly follow my work you already know the answer to that question.
Oh, but we wouldn’t want to change from the way things work today, would we? After all, the U.S. economy has grown at a blistering average yearly rate of just 1.33 percent over the past decade, and we are actually behind that pace so far in 2017.
So how are we going to fund the federal government if we eliminate the income tax?
Well, the truth is that taxing individual incomes accounts for only 46.2 percent of all federal revenue. The federal government has lots of other ways that it raises money, but of course we wouldn’t be able to keep the massively bloated federal bureaucracy that we have today. We would need to reduce the size and scope of the federal government to an appropriate constitutional level, and of course most politicians on the left would resist this greatly.
There are some federal agencies and programs that we could completely eliminate altogether. If it was up to me, the EPA, the Department of Education and the BATFE would be good places to start. Any essential functions that they are currently performing could easily be absorbed by other agencies.
There are very few politicians in our entire country that will still talk like this, because our leaders have taken us so far down the road toward “a social state” that most Americans don’t even know what “limited government” looks like anymore.
Over the past several decades, the left has made a tremendous amount of progress toward achieving the goals that Saul Alinsky originally outlined in Rules for Radicals. Obamacare was a giant step toward federal control over our healthcare system, poverty is exploding as the middle class shrinks, we are nearly 20 trillion dollars in debt, our public schools have become left-wing indoctrination centers, and God has been pushed out of almost every corner of public life.
We should be very thankful that we got Donald Trump instead of Hillary Clinton, but many radical leftists consider Trump to simply be a bump in the road on the way to completely eradicating our way of life.
They want to criminalize what we believe by making it “hate speech”, they want to steal the minds of the next generation by dominating our system of education, and they want to use government institutions and the legal system as tools to completely reshape society in their image.
The only way that we are going to defeat this tyranny is if we stand up and fight for our country, and that is precisely what we are going to do.
It is really easy to sit back and complain about the direction of this country, but what America really needs at this hour are men and women that are willing to step into the fight to save our constitutional republic. As I have said before, getting Donald Trump elected was the greatest miracle in U.S. political history, but he should not have to wage this battle alone. Trump has very few friends in Congress at this point, and so it is absolutely critical that we get him some during the 2018 mid-term elections. So I am calling for an army of pro-Trump activists to run for national, state and local offices all over America in 2018. Donald Trump started this revolution, and now it is our job to continue it.
My father was in the U.S. Navy, and so sometimes I like to put things in military terms. When an amphibious invasion is being conducted, it is the troops that hit the beach first that take the most fire. To me, that is a perfect picture of what is happening to Donald Trump right now. He has established a beachhead, and now the rest of us need to rush to shore to back him up.
If we are not willing to try, what is going to happen? Our political system on the national, state and local levels will continue to be dominated by Democrats and “progressive Republicans”, and our once great nation will continue to fall apart all around us.
We need patriotic men and women to challenge every available seat in America in 2018. Some of us will win and others will lose, but at least we will have given the American people a choice.
We are never going to have a true political revolution if we don’t at least try, and this election cycle represents a tremendous opportunity. I really like how Rush Limbaugh made this point during one of his programs…
Do you realize what a nothing burger the Democrat Party is? Do you realize the Democrat Party literally has nothing virtuous, positive, uplifting to run on? In all of this, the Democrat Party dares not ask people, “Hey, take a look at us. We got better ideas. Hey, take a look at us. We can fix this.” None of that. The only thing they’ve got is this insane, invisible, nonexistent, so-called connection between the Russians and our election. They have no ideas. They have no optimism. They have no leaders. They have no vision. They are ripe for being smoked for generations! This is the time to move in politically and wipe them out. …
Don’t misunderstand here, folks. I’m not saying the Democrats don’t pose a threat. I’m not… Look, two things here. The Democrats are in deep trouble, electorally. The Democrats are not running the left; the media is. And the media is clearly not inconsequential. Don’t misunderstand. I’m not saying that what’s happening here is obviously to everyone. I’m saying the Republican Party has a golden opportunity here to continue to hammer the nail into the coffin of the Democrat Party.
Our founders intended for us to have a constitutional republic with a limited central government, but the globalists have turned the federal government into an absolute monster. We need to tame that monster and restore the constitutional republic that our founders originally designed.
The easy route would be to sit back and wait for someone else to do something.
But I have decided not to do that.
Earlier today, I announced on the Alex Jones Show that I am “strongly considering” running for Congress in 2018…
Labrador represents the district in which my wife and I live, and when I heard this news I realized that this represents a truly unique opportunity.
Congressman Labrador has been doing a wonderful job, and if he had run again he would have won by a landslide. But now that he is not running, there is no incumbent and the race is entirely wide open.
If I decide to run, and I am very strongly leaning in that direction, the key to the race will be to win the Republican primary. Hillary Clinton got only 27.5 percent of the vote in Idaho last November, and Labrador won his last election by more than 120,000 votes. So whoever wins the Republican primary will almost certainly win the general election.
Donald Trump has shown us that nothing is impossible in politics. When he first declared his candidacy, liberal pundits literally laughed at him on the air because they thought his candidacy was such a joke. But his bold message struck a chord with conservative voters all over the country, and now he is the president of the United States.
If he can do it, why can’t we?
If I run, I plan to continue the absolutely outstanding work that Congressman Labrador has been doing, and I plan to be a key ally for President Trump in Congress. Right now Trump has very few friends in Congress, and that desperately needs to change.
In recent years, the House has lost some tremendous conservative voices. I plan to continue the legacy of Ron Paul, Michele Bachmann and so many others that stood strong for conservative causes at a time when it was not always popular to do so.
But if I am going to do this, I am going to need lots of assistance. If you have experience with campaigns on a state or local level, or if you just want to help out any way that you can, please feel free to drop me an email or contact me on Facebook. I have never run for office before, and so I have a lot to learn, and I greatly value the advice and counsel of others.
Also, if there are other pro-Trump activists out there that plan on running in 2018, we should definitely connect. If we all work to promote one another, we can create a giant groundswell of momentum which could sweep a whole bunch of pro-Trump activists into political positions all around the country.
For a long time I have been writing about the great problems that this nation is facing, and now I am trying to be part of the solution.
It has been said that life is like a coin. You can spend it any way that you want, but you can only spend it once.
As for me and my house, we are going to spend our lives doing things that really matter.
On Wednesday, Ron Paul’s bill to audit the Federal Reserve was overwhelmingly passed by the U.S. House of Representatives. The vote was 327 to 98. You would think that a bill with such overwhelming support would easily become law. But it won’t, because Barack Obama and the Democrats plan to kill it. Senate Majority Leader Harry Reid has already said that the Senate will not even consider the bill. But of course if Barack Obama called Harry Reid and told him that he wants this bill to get through the Senate so that he could sign it then Harry Reid would be singing a much different tune. Sadly, we all know that is not going to happen. Barack Obama’s good buddy Ben Bernanke called the Audit the Fed bill a “nightmare scenario” last week, and Obama is certainly not going to do anything to upset Bernanke – especially this close to the election. Obama needs Bernanke to do everything that he possibly can to stimulate the economy so that Obama will look as good as possible in November. The sad truth is that there is absolutely no chance that the Audit the Fed bill will become law and that is a crying shame.
So why is an audit of the Federal Reserve so important?
Why does Federal Reserve Chairman Ben Bernanke consider an audit of the Federal Reserve to be a “nightmare scenario” that must be avoided at all costs?
Well, perhaps it is because there has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.
The Federal Reserve has more power over the economy than anyone else in the country does, and yet they are virtually unaccountable and the American people have very little idea what has been going on behind closed doors over at the Fed for the past 100 years.
A very limited audit of the Fed that was passed a couple of years ago that examined transactions during the last financial crisis discovered that the Federal Reserve had actually loaned out more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010.
Keep in mind that U.S. GDP for the entire year of 2011 was only slightly more than 15 trillion dollars.
The Federal Reserve loaned out trillions upon trillions of dollars to their friends and never told the American people about it.
You would think that Congress would be quite eager to see what else has been going on over at the Federal Reserve.
But instead, many Democrats are completely and utterly opposed to auditing the Fed any further.
“I think the whole idea that they can deal in trillions of dollars and know that nobody is allowed to ask them a question is a moral hazard.”
And Ron Paul is right.
If the Federal Reserve can zap trillions of dollars into existence out of thin air and loan that money to their friends at the big banks and to central banks in other countries, then it should not be too much to ask them to be accountable to the American people.
Over the coming months, the American people will heatedly debate whether Barack Obama or Mitt Romney would be better for the U.S. economy.
But the truth is that the Federal Reserve has far more power over the U.S. economy than the president of the United States does.
The Federal Reserve has been called the “fourth branch of government” because of how much power it has. The Federal Reserve sets our interest rates, it determines the level of our money supply, it regulates and secretly bails out our banks, it determines the “target rates” for unemployment and inflation, and every small move the Fed makes causes global financial markets to swing wildly.
The Federal Reserve does all of this without ever having to be accountable to the American people. In fact, whenever a bill is introduced that would shed some light on their activities they whine and cry about how important their “independence” is.
For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress. Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists.
The American people need to stand up and demand an audit of the Federal Reserve.
We deserve to know what is going on over there.
Sadly, the mainstream media makes it sound as if hell has a better chance of freezing over than this bill does of becoming law. The following is from a USA Today article that was posted on Wednesday….
The bill stands no chance of becoming law because the Democratic-controlled Senate will not take it up. The vote, however, served as a symbolic swan song for Paul, who is not seeking re-election. It is also an indicator of how Paul’s economic views have gone more mainstream, particularly within the Republican Party, in the wake of the 2008 financial crisis that shook Americans’ confidence in Wall Street and the federal government.
Well, let us hope that this kind of a bill keeps getting introduced in Congress.
Perhaps someday we actually will get a real audit of the Federal Reserve.
When that happens, the following is a list of questions that I would like to see asked by those auditing the Fed….
Is there one thing that Tony Robbins, Ron Paul and Ben Bernanke can all agree on? Yes, there actually is. Recently they have all come forward with warnings that the national debt crisis could destroy America if something is not done. Unfortunately, our politicians continue to spend us into oblivion as if there will never be any consequences. When Barack Obama took office, the U.S. national debt was 10.6 trillion dollars. Today, it is 15.6 trillion dollars and it is rising at the rate of about 150 million dollars an hour. During the Obama administration so far, the U.S. government has accumulated more debt than it did from 1776 to 1995. The United States now has a debt to GDP ratio of over 100 percent, and another credit rating agency downgraded U.S. debt earlier this month. Any talk of a positive economic future is utter nonsense as long as we are bleeding red ink as a nation far faster than we ever have before. It is absolutely immoral to wreck the financial future of our children and our grandchildren and to leave them with a bill for the greatest mountain of debt in the history of the world, but that is exactly what we are doing. Unless our current debt-based financial system is thrown out, there are only two ways that this game is going to play out. One would involve absolutely bitter austerity and deflation unlike anything ever seen before, and the other would involve nightmarish hyperinflation. Either path would be hellish beyond what most Americans could possibly imagine.
Unfortunately, we are running out of time as a nation. You know that things are late in the game when the head of the Federal Reserve starts using apocalyptic language to talk about the national debt. The following is what Federal Reserve Chairman Ben Bernanke told Congress recently….
Having a large and increasing level of government debt relative to national income runs the risk of serious economic consequences. Over the longer term, the current trajectory of federal debt threatens to crowd out private capital formation and thus reduce productivity growth. To the extent that increasing debt is financed by borrowing from abroad, a growing share of our future income would be devoted to interest payments on foreign-held federal debt. High levels of debt also impair the ability of policymakers to respond effectively to future economic shocks and other adverse events.
Even the prospect of unsustainable deficits has costs, including an increased possibility of a sudden fiscal crisis. As we have seen in a number of countries recently, interest rates can soar quickly if investors lose confidence in the ability of a government to manage its fiscal policy. Although historical experience and economic theory do not indicate the exact threshold at which the perceived risks associated with the U.S. public debt would increase markedly, we can be sure that, without corrective action, our fiscal trajectory will move the nation ever closer to that point.
The sick thing about this is that the Federal Reserve system is actually designed to generate government debt. The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was created back in 1913. So it is kind of ironic that the head of the organization that was designed to perpetually generate U.S. government debt is now warning that there is too much of it.
But Ben Bernanke is far from alone in warning about the danger of our exploding national debt.
For example, world famous motivational speaker Tony Robbins is also warning that the national debt crisis could destroy our future.
These days, most people throw around the phrase “a trillion dollars” without ever really grasping what it means.
In the video posted below, Tony Robbins uses a fun illustration to help put in perspective how large a “trillion dollars” really is.
If you had a million seconds to do something, would you consider that to be a long time?
Well, it turns out that a million seconds is only about 12 days.
What about a billion seconds? Is that a long period of time?
Well, yes, a billion seconds is close to 32 years. So that is definitely a lot longer than a million seconds.
What about a trillion seconds?
How long do you think that is?
Well, a trillion seconds is about 31,688 years.
So when we talk about how the U.S. government is stealing more than a trillion dollars from future generations every single year, we are talking about an absolutely massive amount of money.
The Tony Robbins video about the national debt crisis posted below has started to go viral all over the Internet. If you have not seen it yet, I definitely recommend taking a few minutes to watch it….
So why are our politicians not doing anything about the U.S. debt crisis?
Well, it is because most of them value getting elected over and over again above doing what is right for future generations.
For the past four decades, the United States has been enjoying a 15 trillion dollar party. All of this borrowed money has enabled us to live far, far beyond our means.
If our politicians voted to severely cut spending or to raise taxes dramatically at this point, our economy would suddenly readjust to a more realistic standard of living. But that would be extremely painful and most Americans voters would be absolutely furious. They would demand that someone “fix” the economy immediately. But the truth is that what we have been enjoying all these years has not been real. It has been bought with trillions of dollars stolen from future generations. But most of our politicians just want to keep the party rolling as long as humanly possible so that they can keep getting voted back into office.
Fortunately, there are a few politicians that are willing to stand up and tell the truth about our national debt crisis. For example, in the video posted below Ron Paul scolds the rest of Congress for continuing to vote for debt limit increase after debt limit increase….
Unfortunately, the American people seem to prefer politicians that endlessly lie to them about how bad things really are.
For example, back at the beginning of the Bush administration we were promised that we would be swimming in gigantic surpluses by now.
That didn’t exactly work out, now did it?
Barack Obama promised us that he would cut the size of the federal budget deficit in half by the end of his first term.
Since 1975, we have added more than 15 trillion dollars to the national debt. In fact, the U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.
A lot of talking heads on television continue to assure us that everything is going to be okay, but the truth is that we are about to experience some absolutely devastating consequences for decades of really bad decisions.
For example, the rest of the world is rapidly losing faith in our currency and the reign of the U.S. dollar as the primary world reserve currency is in serious danger of coming to an end. When that happens, gasoline, food and just about everything else that you buy is going to be a lot more expensive.
Already, there are very ominous signs that the rest of the world is getting tired of financing our endless spending. In 2011, the Federal Reserve bought approximately 61 percent of all new government debt issued by the U.S. Treasury Department. This is not supposed to happen. The Federal Reserve is not supposed to be monetizing our debt and this is something that Congress should be looking into.
Also, at this time of the year people love to complain about the outrageous amount of taxes that most hard working Americans have to pay, but the truth is that eventually it will likely get a whole lot worse.
Just look at Greece. Taxes in Greece have been raised to suffocating levels, government spending has been slashed to the bone and yet they are still running up more debt.
That is going to happen in the United States at some point too, especially if our leaders choose the path of austerity and deflation.
You can’t hide from debt forever.
Have you ever run up debt on a credit card?
A lot of us did that when we were young and foolish, and it can be a lot of fun on the way up.
But eventually a day of reckoning comes and it is extremely painful to find yourself drowning in credit card debt.
Well, we are rapidly approaching our credit limit as a nation.
Some hard choices will have to be made, and there will be a lot of pain.
The false prosperity that we are enjoying now is going to disappear.
Now is the time to prepare for the massive economic shift that is coming. In the coming economic environment, those that are currently living month to month and those that are 100% dependent on the system are going to be in a huge amount of trouble.
Instead of wildly spending money as if the good times will never end like most Americans are, now is the time to get out of debt, to become more self-sufficient and to set aside the money, resources and supplies you will need to weather the storm that is rapidly approaching.
Anyone with half a brain should be able to see that a gigantic economic collapse is coming.
Use the time that you still have left to prepare the best that you can.
Is Ron Paul finally in position to really do something about the Federal Reserve? U.S. Representative Spencer Bachus, the chairman-elect of the House Financial Services Committee, has announced that Ron Paul will chair the domestic monetary policy subcommittee starting next month. This puts Ron Paul in tremendous position to be able to put significant pressure on the Federal Reserve. In previous years Ron Paul has introduced legislation to end the Federal Reserve but it never got any traction. During this most recent session of Congress an effort by Ron Paul to have a full audit of the Federal Reserve conducted gathered quite a bit of momentum for a while, but in the end it did not get passed. However, a very limited examination of Fed activities during the recent financial crisis was passed, and that examination has revealed some really shocking things. With so many Tea Party members entering Congress this upcoming session there may be more momentum than ever to hold the Federal Reserve more accountable. Ron Paul is already talking about how he is planning for a full slate of hearings on U.S. monetary policy and he has indicated that he plans to restart a push to have the Fed audited.
And why shouldn’t the Federal Reserve be fully audited? The Federal Reserve has more power over the U.S. economy than any other institution and yet it has not been subjected to a comprehensive audit since it was created back in 1913.
So what would an audit accomplish?
Well, it would hopefully expose what is going on inside the Federal Reserve.
A very, very limited examination of Fed transactions that occurred during the recent financial crisis forced the Federal Reserve to reveal the details of 21,000 transactions stretching from December 2007 to July 2010 that totaled more than 3 trillion dollars. It turns out that the Federal Reserve was just handing out gigantic piles of nearly interest-free cash to their friends at the largest banks, financial institutions and corporations all over the globe.
These revelations have many members of Congress wondering what else has been going on inside the Federal Reserve.
For example, U.S. Senator Bernie Sanders was absolutely outraged by these “backdoor bailouts” by the Federal Reserve….
“The $700 billion Wall Street bailout turned out to be pocket change compared to trillions and trillions of dollars in near zero interest loans and other financial arrangements that the Federal Reserve doled out to every major financial institution.”
More members of Congress than at any other time in recent memory are openly wondering if it is now time “to pull back the curtain” at the Federal Reserve. For those who would like to see the power of the Federal Reserve greatly diminished, there should be one primary goal right now.
Expose the Federal Reserve.
The truth is that the more the American people learn about the Federal Reserve and about what it has been doing the more they disapprove.
During his farewell speech on the floor of the U.S. Senate this week, Senator Jim Bunning noted that as the American people become increasingly aware of what the Federal Reserve is doing the less they like it….
“Public awareness of what the Fed is doing is increasing while public opinion of the Fed is falling.”
Unfortunately, the views of Ron Paul and other anti-Federal Reserve members of the Tea Party movement are strongly opposed by many other members of the Republican Party.
“I do not believe that Ron Paul’s views on the Fed represent the views of most Republicans.”
However, there is evidence that the tide is turning with the American public.
According to a recent Bloomberg National Poll, the number of Americans that would like to see the Federal Reserve held more accountable or even completely abolished is increasing….
Asked if the central bank should be more accountable to Congress, left independent or abolished entirely, 39 percent said it should be held more accountable and 16 percent that it should be abolished. Only 37 percent favor the status quo.
Those are very exciting numbers. A majority of Americans now want the power of the Federal Reserve to be reduced or they want it shut down entirely.
If Ron Paul is able to get a comprehensive audit of the Federal Reserve passed, the revelations that would come out of that would certainly turn public opinion against the Fed even more.
So what is so bad about the Federal Reserve?
Well, think of it as a perpetual debt machine.
Did you know that the U.S. national debt is 5,000 times larger than it was a hundred years ago?
That’s right – back in 1910, prior to the passage of the Federal Reserve Act, the national debt was only about $2.6 billion.
Since that time, our debt has been endlessly skyrocketing.
Under the Federal Reserve system, the U.S. government cannot just go out and print money. It is actually the Federal Reserve that issues our currency.
The way our system works, whenever the U.S. government arranges for the Federal Reserve to issue more currency, more government debt is created at the same time. In fact, as I have written about previously, all of our money is now based on debt.
No debt, no money.
What we desperately need is for the current monetary system to be scrapped. The federal government should take back the power to issue currency and should implement a new system based on money that is debt-free.
The truth is that it is insane that any sovereign government should have to go into debt just to produce more of its own currency.
Instead, what we have under the Federal Reserve system is a money supply that will forever be expanding, a currency that will forever be deteriorating in value and a national debt that will continue to skyrocket until the entire system collapses.
Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power. This continual debasement of our currency is called “inflation” and it is a hidden tax on every man, woman and child in the United States.
It is absolutely guaranteed that every single dollar that you own will go down in value over the long-term.
But the American people have come to accept that a constantly expanding national debt and a currency that is constantly losing value is the most “rational” economic system that humanity has ever come up with.
So who benefits from all this?
Well, for fiscal year 2010 the U.S. government paid out over 413 billion dollars in interest on the national debt. In future years that number is projected to rapidly skyrocket even more.
Wouldn’t you like to be getting a nice chunk of that 413 billion dollars?
It turns out that loaning money to the U.S. government is very, very profitable.
That 413 billion dollars is money that was transferred from the American people to the U.S. government, and then transferred from the U.S. government to big financial institutions, foreign countries, and very wealthy bankers.
So what did we get in return for our 413 billion dollars?
Sadly, this is not just going on in the United States. This is going on literally in almost every nation on earth.
All over the world sovereign governments are drowning in debt and so they have to drain their citizens dry so that they can meet their obligations.
In the book of Proverbs, it tells us that “the rich ruleth over the poor, and the borrower is servant to the lender.” Americans like to think that they live in “the land of the free”, but the truth is that we have become enslaved to debt.
But even worse, we have consigned our children and our grandchildren to a lifetime of debt. They will have to work all of their lives to pay trillions of dollars in interest on all of the debt that we have accumulated in this generation.
How would you like to be born into a world where the previous generation had racked up a $13 trillion debt that now you were expected to pay off?
There is a reason why people like Ron Paul are so obsessed with the Federal Reserve. It is not because they don’t have anything better to do. It is because the future of our country literally hangs in the balance.
Throughout American history, presidents, top members of Congress and leading business people have warned us about the dangers of having a central bank. In fact, even though our young people are no longer taught this, the debate over central banking was one of the most important themes in early American history.
But we didn’t listen to the warnings.
We were convinced that we knew better.
Well, now we have an economic system that is dying and a $13 trillion debt that we are passing along to our children and to our grandchildren.
Perhaps we were not as smart as we thought we were.
When the mainstream media told the American people that the Federal Reserve was going to “help” the housing industry by buying up hundreds of billions of dollars worth of toxic mortgage backed securities, very few people probably even stopped to wonder where all of that money was going to come from. Well, the truth is that it did not come from anywhere. It was made up out of thin air. In fact, a total of 1.3 trillion dollars was just “printed into existence” so that the Fed could soak up these problematic securities (and help their buddies down on Wall Street in the process who were desperate to dump them). During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.
Of course we all know that the Federal Reserve creates money out of thin air all the time, so that is not new, but what is new is the recklessness and openness with which they are going about doing it.
Need to help your buddies down on Wall Street by buying up a tsunami of bad mortgage securities?
Just zap another trillion dollars into existence!
Need to bail out the mortgage giants Fannie Mae and Freddie Mac?
Just get the magic money printing machine ready!
Wouldn’t it be nice if the rest of us could create money out of thin air? It would make life so much easier.
A video clip of the exchange between Ron Paul and Bernanke at this hearing is posted below.
The key moment comes when Ron Paul makes this statement….
“Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.”
As you watch this video, you will notice that at that moment Bernanke nods his head up and down repeatedly….
So who does all of this money printing benefit?
Well, it benefits the Federal Reserve and the big financial institutions on Wall Street that have financial ties to the Federal Reserve.
So while there are lots of smiles going around in Washington D.C. and on Wall Street these days, the same cannot be said for the rest of the good ole U.S.A. as the following video illustrates….
The reality is that the United States is a nation that does not even have control over its own currency. If the United States government wants more money, it has to go ask the Federal Reserve to create it. Unfortunately, the Federal Reserve does not also create the interest that will ultimately be paid on that new money that is being created. So where will the money come from to pay the interest? Well, by creating even more money (debt) in the future. It sounds like insanity, but that is the U.S. financial system. It is a perpetual debt machine that was created to have an ever expanding national debt that is mathematically impossible to pay off.
Just because the folks down on Wall Street do not dress up in gang colors or try to sell drugs to our children does not mean that they are not corrupt or that they are not criminals. In fact, the truth is that the corruption in our financial system is hitting unprecedented levels.
But most Americans have no idea what in the world is going on in the financial system. All most of them know is that things are getting bad and they want somebody to “fix” the problems.
Unfortunately, the folks that the American people are expecting to “fix” things are the very same ones who got us into this mess in the first place.
“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.” -Senator Barry Goldwater
“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.”
-President Woodrow Wilson
“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.”
-Franklin Delano Roosevelt
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
“Give me control of a nation’s money and I care not who makes it’s laws” -Mayer Amschel Bauer Rothschild