What has Government Done to Our Money?

I'm still plugging away through this as it's a mighty document.

Murray N.Rothbard wrote this piece, I have to thank him for producing a informative piece which shows how government meddling in the financial system has screwed up so much in our lives. I think this can be applied to most countries.

I found this article when reading Ron Paul's book, The Revolution : A Manifesto.

Enjoy.

Link (big)

They have given it to banks, Military industrial complex and various interests in the private sector wall street etc. That pretty much covers it.

Monetary policy, by design, serves the perceived needs of the rulers. It does not, as a rule, serve the needs of the ruled, although they may occasionally benefit from, ah, proximity effect, if you will. The government gave control of monetary policy to central bankers. The government does not rule. The bankers are the rulers.

What is being witnessed, globally, is the shift in monetary policy to suit the perceived needs of the rulers. The ruled have thought, wrongly and for far too long, that the rulers (again, bankers, not governments) made policy in the interest of the ruled.

Some of the ruled had a good run, making easy money where they could. In comparison, that was but bread crumbs compared to the rewards the rulers have reaped and will continue to reap if the ruled do not wake up to reality.

One of Rothbard's friends gave a lecture on how monetary inflation killed the Roman empire (coupled with, as a result of and simultaneously causing all sorts of wrong-headed policies). I cannot remember his name, Professor something or other, but it is a good, and timely, read.

I agree the bankers actually rule and the politicians allow it because they get to tax the populous using the hidden tax of inflation. The ruled are now fighting against two greedy power blocs, the Bankers and the politicians. There is a third and that is the Corporations. Since Corporations are usually the first to benefit from newly inflated dollars in terms of loans, and they get to pay those loans back with dollars of less value down the road, they are part of the power block also. Any one else notice that the Evil Monster corporation, Monsanto is 85% controlled by Financiers?


An objective in 1913 when the Fed was formed "was to reverse the trend of what is called private capital formation. That's banker language for a process in which an individual or a corporation uses their own savings to pay for something instead of going to the bank and borrowing it.... The banks were very concerned over this trend because this is their life-blood. Loaning money is what they do so how do you loan money when people don't want to borrow it? The answer they knew, and they talked a lot about this, was to lower interest rates, get those rates down so that they were so attractive that people would be crazy not to come to the banks and borrow money at those good interest rates." link This cheap money is another reason for Corporations to be in bed with the Bankers.

The leveraged buyout spree of the 1980's killed off US high equity corporations by allowing Corporate Raiders to use bank loans to buy up stock and then pay it off after the take over when the well run high equity Corporation was torn apart and sold off in pieces. We are paying for it now because the only US companies left are highly debt ridden and many are owned by foreign investors (over 70% of the US GNP is foreign owned!)


DId you know ALL of your tax dollar goes to the Central Bank?

"With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government." - from the Grace Commission Report famguardian.org...

The Central Banks cause Large Scale Warfare

From the Bank of England forward all the governments of Europe had central banks for a very good reason. The kings and princes of Europe had learned from hard experience that they could raise the taxes of their subjects only so high and then they had a revolt on their hands and they tended to lose their jobs (and heads). It appears that that natural level was about 40-43%; people will tolerate taxes up to about 40-43% and then they start digging in their heels and they just won't allow it to go any further. But with the central bank mechanism in place the lid was off. Now these governments could tax their people 50%, 60%, 70% and in some cases 80% of everything they produced and they did not have a revolt on their hands. They did not have resentment because the people didn't know that they were paying a tax. They knew that prices were going up, but they didn't understand why, they didn't know who was getting their lost purchasing power.

It was a nifty arrangement for these governments. It was at that point in history that governments' wars began to heat up. They always had wars but they were relatively small things because wars are expensive and the people won't pay more than 40% for everything including wars. But now that they had a way to tax higher than that, they could engage in very expensive wars. It's at that point in history that Europe plunged headlong into continuous war and big, very, very expensive wars. The people paid for them uncomplainingly through the process of inflation.
www.bigeye.com...

Other excellent references

A PRIMER ON MONEY:Committee on Banking and Currency, House of Representatives 1964 famguardian.org...

G.Edward Griffin speaks about his book “The Creature from Jekyll Island” www.bigeye.com...


Interviews with John Perkins, former respected member of international banking, Author of “Confessions of an Economic Hit Man”
www.lewrockwell.com...
www.democracynow.org...

Thanks for the comments people I'll bump this now.

Good links as always crimvelvet.