The Neo-Alchemy of the Federal Reserve by Ron Paul

I would like to post an article by Ron Paul that I found .

The Neo-Alchemy of the Federal Reserve

By Ron Paul

December 15, 2008 "ICH" -- - As the printing presses for the bailouts run at full speed, those in power are no longer even pretending that the new giveaways will fix our problems. Now that we are used to rewarding failure with taxpayer-funded bailouts, we are being told that this is “just a start,” more funds will inevitably be needed for more industries, and that things would be much worse had we done nothing.

The updated total bailout commitments add up to over $8 trillion now. This translates into a monetary base increase of 75 percent over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere – it is created from thin air, and devalues every dollar in circulation. Dumping money on an economy, as they have been doing, is not the same as dumping wealth. In fact, it has quite the opposite effect.

One key attribute that gives money value is scarcity. If something that is used as money becomes too plentiful, it loses value. That is how inflation and hyperinflation happens. Giving a central bank the power to create fiat money out of thin air creates the tremendous risk of eventual hyperinflation. Most of the founding fathers did not want a central bank. Having just experienced the hyperinflation of the Continental dollar, they understood the power and the temptations inherent in that type of system. It gives one entity far too much power to control and destabilize the economy.

Our central bankers have had a tremendous amount of hubris over the years, believing that they could actually manage a paper money system in such a way as to replicate the behavior and benefits of a gold standard. In fact, back in 2004 then Fed Chairman Alan Greenspan told me as much. People talk about toxic assets, but the real toxicity in our economy comes from the neo-alchemy practiced by the Federal Reserve System. Just as alchemists of the past frequently poisoned themselves with the lead or mercury they were trying to turn to gold, today’s bankers are poisoning the economy with accelerated fiat money creation.

Throughout the ages, gold has stood the test of time as a consistently reliable medium of exchange, and has frequently been referred to as “God’s money”, as only God can make more of it. Seeking superhuman power over money in the way alchemists did in ancient times caused society to shun them as charlatans. In much the same way, free people today should be sending the message that this power and control over our money is no longer acceptable.

The irony is that even had the ancient practice of alchemy been successful, and gold was suddenly, magically made abundant, alchemists still would have failed to create real wealth. Creating gold from lead would have cheapened its status to that of rhinestones or cubic zirconia. It is unnatural and dangerous for paper to be considered as precious as a precious metal. Our fiat currency system is crumbling and coming to an end, as all fiat currencies eventually do.

Congress should reject the central bank as a failure for its manipulations of money that have brought our economy to its knees. I am hoping that in the 111th Congress my legislation to abolish the Federal Reserve System gains traction so that the central bank can no longer destroy our money.

Comments ?

Ron Paul is so cute!

I said: Ron Paul is so cute! Not in a I-want-to-have-his-baby way, but he can deliver my baby...if I ever have one.

We all know by now that we aren't going back to gold as long as we have our current government. They would never be able to switch anyways, unless we start fresh and leave them and their corrupt banks out of it. And that sounds great to me.

It will be interesting to see if this legislation to abolish the Federal Reserve gains any recognition at all ?

Seems to me that the vote that created the Fed was done so in the wee hours of the night well most members were at home on holidays , can good old Ron not arrange a similar vote to do away with it ? Wink wink

After he delivers Plucky's baby of course lol

[edit on 21-12-2008 by Max_TO]

Right you are Max_TO that's the nature of how the money system works.

Plucky: wtf?!? O_o Although I will give you credit that, Dr. Paul is more cuter than Dr. Phil.

Here is another interesting article that I found

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the government the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

My question , is this Executive order still standing ?

Funny how the U.S once had a president that issued Executive orders that were actually
designed to help and free the people rather then limit and take rights away from the people . But we all know what it got him for his trouble

reply to post by Max_TO


And what do you think those powers (the BIG banks) did to Mr.Kennedy? Well you should know your history.
He refused to play by their rules so he was "removed."

This should give you more of an idea what Big Banks are all about.

Revealed by US Congressman Charles A. Lindbergh, Sr. from Minnesota before the US Congress sometime during his term of office between the years of 1907 and 1917 to warn the citizens.

"We (the bankers) must proceed with caution and guard every move made, for the lower order of people are already showing signs of restless commotion. Prudence will therefore show a policy of apparently yielding to the popular will until our plans are so far consummated that we can declare our designs without fear of any organized resistance. The Farmers Alliance and Knights of Labor organizations in the United States should be carefully watched by our trusted men, and we must take immediate steps to control these organizations in our interest or disrupt them.

At the coming Omaha Convention to be held July 4th (1892), our men must attend and direct its movement, or else there will be set on foot such antagonism to our designs as may require force to overcome. This at the present time would be premature. We are not yet ready for such a crisis. Capital must protect itself in every possible manner through combination ( conspiracy) and legislation.

The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.

When through the process of the law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of the government applied to a central power of imperial wealth under the control of the leading financiers. People without homes will not quarrel with their leaders.

History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.

The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party.

By thus dividing voters, we can get them to expand their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discrete action, we can secure all that has been so generously planned and successfully accomplished."

Revealed by Congressman Charles A. Lindbergh, Sr. to the U.S. Congress sometime between 1907 and 1917.

THE BANKERS’ MANIFESTO OF 1934

Capital must protect itself in every way, through combination and through legislation. Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law, the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of wealth, under control of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an IMPERIALISM of capital to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd. Thus by discrete action we can secure for ourselves what has been generally planned and successfully accomplished.

[edit on 21-12-2008 by Muundoggie]

[edit on 21-12-2008 by Muundoggie]

reply to post by Muundoggie


Perhaps you didn't see the last line in my comment ?
Yes its sad what happened to him

reply to post by Muundoggie


Nice bit of info !!
Thanks !!
Stared !

[edit on 21-12-2008 by Max_TO]

reply to post by Max_TO


I saw it. I just wanted to re-emphasize it. Sorry, I hit the "reply to" instead of "post reply"

[edit on 21-12-2008 by Muundoggie]

[edit on 21-12-2008 by Muundoggie]

I've been trying to wake up the people to the agenda of BIG BANKING.
I hope I'm getting through to some of you. I've been on this planet for 60 years and I have personally seen these things that the Bankers Manifesto is talking about. Does any one believe there is a difference between the political parties? Are we not being foreclosed upon? Are we not squabbling over none important issues while the banks are just moving ahead with their agenda? I think the last 30-35 years of presidents have been the tools of Big Banking. The Federal Reserve is just a branch of Big Banking.

[edit on 21-12-2008 by Muundoggie]

I have not been around as long as you but I agree with you 100 %

Many people will never wake up for if we were awake this sort of thing would have never happened in the first place .

On a side note , about a month ago I actually met someone that thought our currency was still backed by gold , this person considered them selves to be will informed and was in there 50's , so this goes to show ya .

Edit to add , this person thought that I was mentally ill when I told them that the currency wasn't backed by gold .

[edit on 21-12-2008 by Max_TO]