Money, Banking and the Federal Reserve

Thomas Jefferson and Andrew Jackson understood "The Monster". But to most Americans today, Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.

Alan Greenspan is not, we're told, happy about this 42-minute blockbuster. Watch it, and you'll understand why. This is economics and history as they are meant to be: fascinating, informative, and motivating. This movie could change America.

Category:

News & Politics

Tags:

• Mises
• Federal
• Reserve
• Greenspan
• Liberty
• fiat
• money
• freedom
• banking

[TheBalancedAmerican]

If the economy were a body, its bones would infrastructure, its muscles would be labor, its mind would be entrepreneurs, and its blood would be money. ;)

[TheBalancedAmerican]

@ayobpala Tesla may have invented wi-fi technology, but it took the free market, and money, to make it available to almost everyone at very low cost. There is more to advancement than innovation, at some point you must also deliver the goods.

Money may be the root of all evil, but it is also the root of all good. Money is only a tool that humans use to interact with each other, exchange goods. How we manifest our world is up to us, not money.

[JudithCorey]

The FED must go. Ron Paul 2012.

[jneil2007]

@TheBalancedAmerican Yea and we also have to remember that all the regional Fed banks are just owned by member banks of that district. Whether it's the south, midwest, northeast, ect. It is a disgrace though and in no way a free market. I talk to people about this isssue all the time and they think we should just restrict their power. That's like us getting rid of the congress and having a king. Then when he abuses power we say, "Oh well we need to just reform the role of the king!!!" Lol

[TheBalancedAmerican]

@jneil2007 I do agree with you that a private central bank, backed by the US government, encourages financial gambling. Bailouts encourage bad behavior.

The Fed system is like an insurance system. All banks give 10% of their cash to the regional reserve banks. If a bank fails, the others are suppose to bail it out. If they all fail, the Central Bank lends cheap money to the regional reserve. If the Fed doesn't have enough cash, it can print money, or buy government bonds =(

[TheBalancedAmerican]

@jneil2007 You're right, investment bankers and banking heads defiantly know the side effects of reserve lending, but I think you'd be surprised how many ordinary local bankers and brokers don't really understand that giving a car loan or a creditcard inflates the supply of money.

Most politicians do NOT understand monetary frameworks and debt-based currencies. Unless you are a member of the Banking Committee, you are not likely to "get it." =/

Only nerds like us are interested ;)

[TheBalancedAmerican]

@tjtomkins The real debate is weather you believe that a growing economy needs a growing money supply. If you believe the latter than gold or silver are poor choices as currency. (1)The commodity places an artificial limit on the amount of currency in circulation which stifles investment and depresses prices.(2)Why tie up a valuable precious metal when it is better used in manufacturing.

If you believe the former, reviewing the severe recessions caused by a gold standard is prudent.

[tjtomkins]

@TheBalancedAmerican

"As trade and commerce grew, the demand for money grew. Clay tablets, Tally sticks, paper notes, anything."

Yeah & that merely means that the purchasing-power of gold goes up & we don't have to "chop the coins", that's why silver was used as a secondary-currency as it's supply lies at 15-20 times that of gold. Not to mention, people don't need to carry coins everywhere, electronic transactions will still be available anyways

[tjtomkins]

@beats299

Gold-std that had been in place was a PHONY one as under it, govt could price-fix so govt & banks used to create more money (devalue, inflate & thereby steal people's purchasing-power).

It's important understand that under business-cycle deflation is preceded by inflationary boom which is caused by over-expansion of credit due to central-banking & fractional-reserve-banking so deflation is merely a "correction" to the earlier inflationary boom; that's where problem lies

[cbasallie]

@TheBalancedAmerican OK that analogy is lost on me. It's food for thought though...... I'll have to mull it over for a while.

[beats299]

we had to get off the gold standard during the depression to fight off deflation, which was destroying our economy. i think we're headed for the other extreme now