America's Road to Ruin

 Sunday, July 26, 2015

This blog does not attempt to present a comprehensive case against the Federal Reserve or fiat money and credit [paper or electronic] per se ... others have already done that quite well. Rather it assumes [rightly or wrongly] that, in a reasonable, non-revolutionary, best case scenario, these are constitutional and can play a beneficial role in American life ... as long as they remain within the limits of the law. Thus this blog simply examines whether the Federal Reserve in its management of our fiat money and credit is acting legally or illegally under the Federal Reserve Act which is a fundamental American question of law and order with deep and pervasive global ramifications.

If you can read the Federal Reserve Act and parse its nouns, adjectives, verbs and adverbs within the logical structure of economics and the evidential context of the Fed's own database, then you should be able to review the actual court case documents [left column] and judge for yourself whether the Federal Reserve is in violation of the law under which it was formed and by which it daily exercises power over, perhaps, the most important medium that socially, economically and politically links Americans ... to one other ... to our pasts and futures ... and to the rest of the world ... across classes, generations and ideologies... our money and credit.

The overthrow of constitutional democracy

But why should you, an individual American citizen, have to spend your time judging whether your own government is in violation of its own laws? Isn't the government which made the laws supposed to obey [or change] them and then to follow them impartially for the mutual benefit of all? Isn't that a given in a constitutional democracy?

Unfortunately, the answer is NO. Through constitutional slight of hand [aka separation of powers and the use of federal agencies], the Congress is able to enact laws ... creating federal agencies [like the Federal Reserve] with specifically limited powers ... which specific limits the President [with Congressional dysfunction or complicity] can then permit [or even direct] those agencies to violate ... resulting in actions that should be condemned as violations of law and abuses of power ... but which instead, over time, become routinely accepted as expediently replacing the rule of law by the exercise of unlimited power. Constitutional democracy and limited government are thus overthrown ... one agency at a time ... and the result is a virtual coup d'etat of the People by their own government.

The abdication of the Courts

But, you may ask, what of the Courts ... won't they judge whether the federal agency has violated the law ... and in so doing expose the subtle exercise of unlimited power for what it is ... the raw abuse of limited power? That was my hope when I filed my lawsuit in federal district court against the Fed for violating the Federal Reserve Act. 

Unfortunately, the answer is NO. The Courts [whose judges are appointed for life by the Congress and the President] conceived a circular argument known as sovereign immunity which "reasons" that federal agencies always act with implied Congressional and Presidential consent and are thus the best interpreters of their limits [if any] under the law which created and empowers them ... a clear abdication by the Courts of their duty to interpret the law under the doctrine of separation of powers. This refusal by the Courts to judge the federal agency's compliance with the law completes the subversion of constitutional democracy and enables the exercise of unlimited power by the agency ... unless ...

The Courts, still following their tortured logic, do concede that IF the Congress and the President, when enacting the law, explicitly permit a citizen to challenge a specific federal agency's violation of the law, then the government has implicitly admitted that ... that specific federal agency may sometimes violate the law ... with or without Congressional and/or Presidential complicity ... in which case the citizens may attempt to enforce the law ... by bringing an action for damages against the agency in the Courts. In other words, the Courts agree to do their job IF BUT ONLY IF the Congress and the President specifically authorize the citizen to complain about the federal agency's abuse of power. Are there snowballs in hell?

Unleashing monetary power

Folks ... this is not rocket science ... any high school student should be able to see how the use of federal agencies coupled with the circular argument of sovereign immunity subverts the separation of powers and overthrows constitutional democracy. And because the Congress and the President did not explicitly permit any citizen [including me or you] to challenge the Federal Reserve's violations of the Federal Reserve Act, my lawsuit was dismissed by the Court without any consideration of the facts and arguments offered to prove the Fed's actions are illegal.

So the Federal Reserve is free to be a monetary tyrant [benevolent or not] ... violating the very law that created it ... with unlimited power over our money and credit ... and with the Courts making sure the Fed cannot be challenged by any citizen. And if this is not dangerous enough ... it gets worse.

Power corrupts and absolute power corrupts absolutely

Congress, the President and lobbyists for TBTF banks, multinational corporations, financial insiders, leveraged hedge funds, special interests of all sorts and even foreign governments are irresistibly attracted to the Fed's vast and unlimited monetary power ... like insects pressing closer and closer to a light in the darkness ... each greedily seeking to use that power for its own gain. But [with the exception of a truly voluntary exchange] wherever there is gain ... there is always a corresponding loss of equal magnitude ... for somebody to win, somebody else must lose.

In the case of the Fed's abuse of monetary power, the gains accrue to a small minority whose wealth soars while the loses fall systematically and heavily on the majority of citizens who hold larger proportions of their discretionary wealth in the form of a depreciating currency ... bank deposits, savings accounts and simple cash from paycheck to paycheck ... the middle class and the poor. But the most devastating effects of the Fed policies are on labor. [For more on the financial enslavement of labor see the blog page titled Central Banking IS Central Planning].

Neutering then fattening the middle class

But the Fed's actions have an even more disastrous impact on this large majority of citizens that make up the middle class ... the de facto loss of their historical economic role, political power and social position. It used to be that ... for the government to run a deficit or wage a war ... or capitalists to build factories ... or bankers to make loans ... they first had to go, hat in hand, to the middle class saver ... and ask for money in the form of a treasury bill or war bond, a corporate bond or a bank deposit ... and promise to repay those savings with interest. This economic balance of power between the few big borrowers and the many small savers gave the middle class great importance, power and position ... the middle class was valued and needed in America for its hard work, frugality and savings.

But the Fed's willingness to break the Federal Reserve Act and provide unlimited and indefinite amounts of zero-interest, fiat credit [created out of thin air] gave government, corporations and banks the green light to turn their backs on the middle class ... and the middle class, which was no longer needed for its virtuous actions, began its slide into obesity, impotency and obscurity. Government could now spend without limits ... corporations profit without limits ... and banks lend [and speculate] without limits ... the Fed's unlimited power to print money and create credit eliminated any economic or political need for a virtuous middle class. The only role left for the middle class was to consume  without limits ... by amassing more and more debt to buy things it no longer produced ... the neutering and fattening of the middle class ... before the slaughter.

Reaping the whirlwind

The inevitable reactions to the Fed's actions [Newton's 3rd law] violating the Federal Reserve Act are playing out in myriad perverse economic, political and social trends across the nation and across the globe ... it is nearly impossible to exaggerate the scope and severity of their tragic and destructive impact. And while proliferation is to be avoided at all costs when dealing with venereal diseases and nuclear weapons ... proliferation is the goal when it comes to money and credit ... and thus it is no accident that the Fed has shamelessly and serially infected the entire world by its insatiable and unrestrained licentiousness.

What difference does it make?

Unfortunately ... most middle class Americans are simply unable to understand what is happening and what the consequences are ... and those very few Washington politicians who do understand and care are savagely opposed by the establishment and attacked by its media minions. But even the dumbest kid can learn something if it is repeated enough times ... and "better late than never" is still true. So take your time ... read the case ... and if you agree that there is a problem, talk to somebody.

I am making sure that every sitting member of the House and Senate get a copy of the link to this blog ... but the power of social media is repetition ... "hits" ... so do your part to get the word out. And maybe ... just maybe ... social media will prove to be the champion for the other vital medium in our lives ... our medium of exchange ... our money and credit.

PS to Congress.
STOP! You and your cohorts have shamefully and relentlessly undermined constitutional democracy ... usually claiming ignorance when the "bad stuff" happens. Well, I will not deny your ignorance ... but your good faith is a lie. You understand enough to know better ... as my grandmother would say. You stand condemned along side the Fed for leading America into tyranny and bankruptcy ... moral as well as economic.

PS to Everyone Else.
GO! If you have something that you believe will add to the simple issue of the illegality of the Fed's actions under the Federal Reserve Act and would like to get the word out to others, put it into a blog and send me a link ... I will try to add links that appear to be constructive and complementary.