All Entries Tagged With: "Federal Reserve"
Financial Fix? Dump The Federal Reserve. Says US Rep Ron Paul
By Bob Unruh © 2009 WorldNetDaily
In just recent weeks, the federal government has designated billions of tax dollars for bank bailouts, including vast quantities to quasi-government agencies that helped create the economic crisis; billions more for automakers, and billions more for homeowners who default on their loans, so where will it end? Republican Rep. Ron Paul of Texas says he has at least part of the answer: abolish the Federal Reserve.
The congressman, a candidate for the 2008 Republican presidential nomination, once again has introduced a bill that would get rid of the private organization that sets interest rates and establishes monetary priorities.
"Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy," Paul said in a statement at the time the proposal was introduced.
"The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency," Paul said. "The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy."
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The Texas lawmaker said the constitutional mandate to Congress actually provides only for currency "backed by stable commodities such as silver and gold."
"Abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold," he said.
Paul said every problem in the economy, "from the Great Depression, to the stagflation of the ’70s, to the current economic crisis caused by the housing bubble," can be traced to Federal Reserve policy.
Paul’s opinions on the Fed are available in a video linked here and embedded here:
Paul’s plan calls for the director of the Office of Management and Budget to "liquidate" Fed assets "in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury."
Columnist and commentator Chuck Baldwin believes it’s about time.
"’We’ve seen money go out the back door of this government unlike any time in the history of our country,’ Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor. ‘Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?’" he wrote.
"Senator Dorgan is exactly right. No one oversees the Fed. The Fed is held accountable to absolutely nobody. But Senator Dorgan (as with everyone else in Congress) has no one to blame but himself. Ever since the Marxist, E. Mandell House, convinced President Woodrow Wilson to create the Federal Reserve in 1913, the Congress of the United States has had virtually nothing to do with the way our fiscal policies are managed. The Fed (which is not even a government agency, but rather a private corporation consisting of mostly foreign bankers) dictates America’s financial policies," Baldwin said.
Baldwin cites the U.S. Constitution itself. In Article I, Section 8, Paragraph 5, it states Congress has the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."
"Only the elected Congress, not some private foreign (or even domestic) banking interest, has the power to make monetary policy," he said, and "paper money – known as the Federal Reserve Notes – is not even legal tender."
The problem Paul’s plan confronts is simple, he wrote.
"No cosponsors. That’s right. No cosponsors," he said.
"Until the American people demand that their elected members of Congress live up to their duties and responsibilities under the Constitution, they will continue to have their pockets picked clean by these corrupt banksters in New York City (and London) and their contemptible facilitators in Washington, D.C.," Baldwin wrote.
Paul’s spokeswoman, Rachel Mills, told WND the congressman has strong feelings about the issue.
"The inflationary policies of the Fed are insidious," she told WND. "It’s a hidden tax on the poor."
She confirmed the idea has been getting more attention recently, because "people are becoming really curious about the roots of our problems."
Federal Reserve Chairman Ben Bernanke this week said "policymakers" have "pulled out all the stops – cutting the federal funds rate … and establishing a series of lending programs designed to add liquidity into credit constrained markets."
He also committed to more "transparency," by introducing a new website for Fed information and new communications efforts.
Paul was unimpressed.
"While I applaud any effort towards greater Federal Reserve transparency, Chairman Bernanke’s latest effort contains more window dressing than substance," he said.
Getting information from the Fed won’t help, he said, "as this data is often inaccurate.
"If the Fed could not be trusted to foresee the present economic downturn, despite the myriad of market commentators predicting this, why should the current Fed data and predictions be any more trusted?" Paul asked. "Furthermore, these new initiatives only divert focus from the real areas where transparency is needed. The Fed’s agreements with foreign central banks and international finance institutions need to be audited, as do the source and destination of funds provided through the Fed’s emergency funding facilities."
At the CitizenEconomists.com site, J.D. Seagraves noted his organization’s poll showed a "sarcastic and/or deranged 5 percent of respondents" believe the Fed’s performance in the current economy is excellent.
One in four in that poll believe, "We should get rid of them."
"Support for abolishing the Federal Reserve System is mounting every day," the report said. "The fact that people are beginning to wake up to the problems caused by the Federal Reserve System is a hopeful sign. The only question is: is it too late? Can the dollar be saved by the political action of the president and the Congress, or must we wait for the entire global financial system to completely melt down so we can start over?"
Columnist Jacob Hornberger last year noted that while Paul’s abolition plan is considered "wacky" by some, at least two Nobel Prize-winning economists have agreed.
Economists Milton Friedman and Friedrich Hayek called for the abolition of the Fed during their careers, Hornberger notes.
"While Friedman spent much of his life advocating externally imposed constraints on the Fed’s power to expand the money supply, his first wish was to have the Fed abolished, as he pointed out in a 1995 Reason magazine interview. In his book, ‘Denationalization of Money: An Analysis of the Theory and Practice of Concurrent Currencies,’ Hayek advocated a free-market monetary system of competing currencies," said Hornberger.
"Most Americans probably still believe that the Great Depression was caused by ‘the failure of the free-enterprise system.’ It is a false belief. The truth is that the worst economic disaster in American history was caused by the Federal Reserve. Give current Fed Chairman Ben Bernanke credit for publicly acknowledging that fact in a speech delivered in 2002 commemorating Friedman’s 90th birthday," Hornberger said.
WND recently reported that under the fiscal policies of the Fed, the total obligations of the United States have reached $65.5 trillion – exceeding the gross domestic product of the world.
Lawsuit Filed Against Treasury Dept: Stop AIG Bailout Financing Terrorism
Thomas More Law Center at (734) 827-2001 or visit our website at www.thomasmore.org
December 15, 2008
Religious - Muslim Star & Crescent ANN ARBOR, MI – A federal lawsuit was filed this morning against U.S. Treasury Secretary Henry M. Paulson, Jr. and the Federal Reserve Board to stop all bailout funds from going to American International Group, Inc. (“AIG”). According to the lawsuit, the U.S. government, through its ownership of AIG, is not only violating the Constitution, but also promoting and financing the destruction of America using American tax dollars.
The basis of the lawsuit is that AIG intentionally promotes Shariah-compliant businesses and insurance products, which by necessity must comply with the 1200 year old body of Islamic canon law based on the Quran, which demands the conversion, subjugation, or destruction of the infidel West, including the United States. To help achieve these objectives and with the aid of federal tax dollars, AIG employs a three-person Shariah Advisory Board, with members from Saudi Arabia, Bahrain, and Pakistan. According to AIG, the role of its Shariah authority “is to review operations, supervise its development of Islamic products, and determine Shariah compliance of these products and investments.”
Of particular significance is the Pakistani Board member, Dr. Muhammed Imran Ashraf Usmani. Dr. Usmani is the son and devoted disciple of Sheik Mufti Taqi Usmani, the leading authority on Shariah financing who, in 1999, authored a book dedicating an entire chapter on why a Western Muslim must engage in violent jihad against his own country – even if Muslims are given equality and freedom to practice their religion and to proselytize.
The lawsuit was filed in the Federal District Court for the Eastern District of Michigan on behalf of Kevin J. Murray, a former Marine infantryman who served two tours of duty in Iraq. Murray is represented by the Thomas More Law Center, a national public interest law firm based in Ann Arbor, Michigan, and David Yerushalmi, an associated attorney who specializes in litigation and is an expert on Shariah law and Shariah compliant financing. Mr. Yerushalmi also serves as general counsel to the Center for Security Policy in Washington, D.C.
According to the lawsuit, use of taxpayer funds to acquire ownership of a business that intentionally promotes, endorses, supports, and funds Shariah-based Islamic religious practices violates the Establishment Clause of the First Amendment to the U.S. Constitution.
Richard Thompson, President and Chief Counsel of the Thomas More Law Center, commented, “This lawsuit not only raises significant constitutional issues, it also shines a light on serious national security issues that our own government has created by direct financial support and ownership of a business that supports anti-American, radical Islamic activities. Make no mistake, there is an internal cultural jihad underway against our great nation, and I fear that many of our political leaders are unwittingly complicit in it.”
On September 11, 2001, Islamic terrorists, guided by principles of Shariah-mandated jihad against “infidels, ” attacked and killed thousands of innocent American civilians. Shortly thereafter, the U.S. went on the offensive by engaging Islamic terrorists overseas in Iraq and in Afghanistan. As in the past when our Nation faced great crisis, American servicemen were called to action, and Kevin Murray answered the call. From March to October 2003, Murray – a U.S. Marine – was deployed overseas in support of Operation Enduring Freedom and Operation Iraqi Freedom.
Yet today, Murray’s federal tax dollars are being used to advance the very cause of global jihad he and his fellow servicemen were placed in harm’s way to overcome. Shariah explicitly demands the murder of infidels like Kevin Murray and the destruction of the United States, which Murray took an oath to defend. Shariah is the same law that is used to justify beheadings, stonings, and amputation for petty crimes in places like Saudi Arabia, Iran, and Sudan, which Americans deplore.
Nevertheless, AIG acknowledges and boasts its promotion of Shariah law and Shariah-based business practices. AIG itself describes “Sharia” as “Islamic law based on the Quran and the teachings of the Prophet .”
In further support of the federal government’s endorsement of Shariah, the U.S. Treasury department co-sponsored a seminar in November of this year entitled “Islamic Financing 101” to promote Shariah financing among American institutions. Click here to read documents from the seminar. The Seminar was jointly sponsored by Harvard University, one of the many American universities and colleges receiving millions of dollars from oil-producing countries to influence their Middle East programs, which are often staffed with professors who are anti-American, anti-Israeli, and pro-Islamic.
“It is clear, ” said Thompson, “oil money is purchasing the sovereignty of the United States and whatever loyalty to America these greedy financial institutions, corporations, and universities have left. It’s up to the American people to take back their country from those who so easily betray its interests.”
The federal lawsuit challenges that portion of the “Emergency Economic Stabilization Act of 2008” that appropriated $40 billion in taxpayer money to fund and financially support the United States government’s majority ownership interest in AIG, which engages in Shariah-based Islamic religious activities that are anti-Christian, anti-Jewish, and anti-American.
According to the lawsuit, through the use of taxpayer funds, the U.S. government acquired a majority (79.9%) ownership interest in AIG, and as part of the bailout, Congress appropriated and expended an additional $40 billion of taxpayer money to fund and financially support AIG and its financial activities. AIG, which is now a government owned company, engages in Shariah-compliant financing, which subjects certain financial activities, including investments, to the dictates of Islamic law and the Islamic religion. This specifically includes any profits or interest obtained through such financial activities.
An important element of Shariah-compliant financing is a form of obligatory charitable contribution called zakat , which is a religious tax for assisting those that “struggle for Allah.” The amount of this tax is between 2.5% and 20%, depending upon the source of the wealth. The zakat religious tax is used to financially support Islamic “charities, ” some of which have ties to terrorist organizations that are hostile to the United States and all other “infidels, ” which includes Christians and Jews.
The Holy Land Foundation for Relief and Development, recently convicted for providing material support to Islamic terrorist organizations, is an example of an Islamic “charity” that qualifies for receipt of the zakat . Thus, as a direct consequence of the taxpayer funds appropriated and expended to purchase and financially support AIG, the U.S. government is now the owner of a corporation engaged in the business of collecting religious taxes to fund interests adverse to the United States, Christians, Jews, and all other “infidels” under Islamic law.
Continued Thompson, “This lawsuit is as much about protecting constitutional principles as it is about protecting our national security and preventing another 9/11 – whether it be overt through flying planes into buildings or covert through appropriating taxpayer money to fund an Islamic cultural jihad .”
The lawsuit seeks a court order to stop the taxpayer funding of AIG and its Islamic-based businesses and activities.
The Thomas More Law Center has been involved in several cases dealing with the insidious threat of radical Islam. Law Center attorney Robert Muise, who is handling this case involving AIG, is also one of the Law Center’s attorneys defending LtCol Jeffrey Chessani, USMC, the senior officer charged in the so-called “Haditha Massacre” case. Those charges were dismissed by a military judge, and the government has appealed that ruling. Muise is also representing former Marine Jesse Nieto, whose anti-Islamic terrorism message was recently banned by military authorities at Marine Corps Base Camp Lejeune because of some unknown complaints.
The Thomas More Law Center defends and promotes America’s Christian heritage and moral values, including the religious freedom of Christians, time-honored family values, and the sanctity of human life. It supports a strong national defense and an independent and sovereign United States of America. The Law Center accomplishes its mission through litigation, education, and related activities. It does not charge for its services. The Law Center is supported by contributions from individuals, corporations and foundations, and is recognized by the IRS as a section 501(c)(3) organization. You may reach the Thomas More Law Center at (734) 827-2001 or visit our website at www.thomasmore.org .
Bush Hands Over Reins of U.S. Economy to EU
By: Dick Morris & Eileen McGann
Wednesday, November 19, 2008 2:28 PM
The results of the G-20 economic summit amount to nothing less than the seamless integration of the United States into the European economy.
In one month of legislation and one diplomatic meeting, the United States has unilaterally abdicated all the gains for the concept of free markets won by the Reagan administration and surrendered, in total, to the Western European model of socialism, stagnation, and excessive government regulation.
Sovereignty is out the window. Without a vote, we are suddenly members of the European Union. Given the dismal record of those nations at creating jobs and sustaining growth, merging with the Europeans is like a partnership with death.
At the G-20 meeting, Bush agreed to subject the Securities and Exchange Commission (SEC) and our other regulatory agencies to the supervision of a global entity that would critique its regulatory standards and demand changes if it felt they were necessary. Bush agreed to create a College of Supervisors.
According to The Washington Post, it would "examine the books of major financial institutions that operate across national borders so regulators could begin to have a more complete picture of banks’ operations."
Their scrutiny would extend to hedge funds and to various "exotic" financial instruments. The International Monetary Fund (IMF), a European-dominated operation, would conduct "regular vigorous reviews" of American financial institutions and practices.
The European-dominated College of Supervisors would also weigh in on issues like executive compensation and investment practices.
There is nothing wrong with the substance of this regulation.
Experience is showing it is needed. But it is very wrong to delegate these powers to unelected, international institutions with no political accountability.
We have a Securities and Exchange Commission appointed by the president and confirmed by the Senate, both of whom are elected by the American people. It is with the SEC, the Treasury, and the Federal Reserve that financial accountability must take place.
The European Union achieved this massive subrogation of American sovereignty the way it usually does, by negotiation, gradual bureaucratic encroachment, and without asking the voters if they approve.
What’s more, Bush appears to have gone down without a fight, saving his debating time for arguing against the protectionism that France’s Nicolas Sarkozy was pushing.
By giving Bush a seeming victory on a moratorium against protectionism for one year, Sarkozy was able to slip over his massive scheme for taking over the supervision of the U.S. economy.
All kinds of political agendas are advancing under the cover of responding to the global financial crisis.
Where Franklin Roosevelt saved capitalism by regulating it, Bush, to say nothing of Obama, has given the government control over our major financial and insurance institutions. And it isn’t even our government!
The power has now been transferred to the international community, led by the socialists in the European Union.
Will Obama govern from the left? He doesn’t have to.
George W. Bush has done all the heavy lifting for him. It was under Bush that the government basically took over as the chief stockholder of our financial institutions and under Bush that we ceded our financial controls to the European Union.
In doing so, he has done nothing to preserve what differentiates the vibrant American economy from those dying economies in Europe.
Why have 80 percent of the jobs that have been created since 1980 in the industrialized world been created in the United States? How has America managed to retain its leading 24 percent share of global manufacturing even in the face of the Chinese surge?
How has the U.S. GDP risen so high that it essentially equals that of the European Union, whose population is 50 percent greater?
It has done so by an absence of stifling regulation, a liberation of capital to flow to innovative businesses, low taxes, and by a low level of unionization that has given business the flexibility to grow and prosper.
Europe, stagnated by taxation and regulation, has grown by a pittance while we have roared ahead. But now Bush — not Obama — Bush has given that all up and caved in to European socialists.
The Bush legacy? European socialism. Who needs enemies with friends like Bush?
© 2008 Dick Morris & Eileen McGann
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