Monday, August 10, 2009

Will Ron Paul Deliver the Fed Into the Hands of the Radical Left?

National People's Action Network's executive director George Goehl 's strong endorsement of Ron Paul's bill is the problem I have been warning about. If this Bill gets close to passing, the left is going to attempt a power grab of the audit.

Goehl's anti-Federal Reserve position is not theoretically deep. As I mentioned, he seems influenced by William Greider, author of Secrets of the Temple. Here's what Lew Rockwell said about Greider's book:

To his credit, Greider has changed the way journaliststhink about the Fed. Even his old paper,The Washington Post,no longer automatically defers to the central bank, whereonce it ran its pronouncements as fact. Also to his credit,Greider has angered financiers and bankers by telling thetruth: that the Fed is the most powerful policymaking institution in America and maybe the world. (Those who profit from what Andrew Jackson used to call the Monster preferto c ontinue operating in the dark.)

Greider criticizes the Fed, but for all the wrong reasons.For example, he claims it isn't inflationary enough! And he calls for high, sustained inflation to create prosperity andjustice. Inflation will resolve the eternal conflict between the rich and the poor, says Greider, in favor of the poor.

There is a seemingly eternal conflict, but it's between those who use the government to get rich, and the rest of us who are thereby made poorer.In his chapter on the founding of the Fed, Greider mentions the idea of the Fed as cartel, but he never brings it upagain. His own·position is that the Fed came about through popular demand, stimulated by political movements forhigher farm prices and an end to bank panics.

In fact, these groups provided only a political opportunity and an ideological excuse for the Morgan.Rockefeller forces-in cahoots with the politicians-to seize control ofthe dollarbyestablishing the Fed.Greider claims that·deflation, not inflation, benefits bankers, and says that the Fed seeks to promote "the virtual elimination of dollar inflation." But the central bank was established only to circumvent the strictures of the gold standard. That is it was founded to inflate...

Greider calls inflation. "a promising model for social equity. " "Many poor people" benefit since they don't have to bearthe rising costs of medical care and housing with "Medicaid and public housing." Similarly, the "elderly" are "partially protected" from inflation because Social Security is "indexed to the inflation rate."

So it is very much a big government inflationist anti-Federal Reserve stance. The exact opposite of Pauls' stance.

When I asked Goehl if the Fed should be abolished he seemed for a second to be taken aback by the question, as though he hadn't even thought about the question before, and then sort of in a reflex answer said "Yes". But then added, "What we really want is more representation of how the Fed operates." Translation: They want to control the Fed to force more inflationary money printing to finance their big government schemes.

I hope Ron Paul knows what the hell he is doing. His End the Fed book better be real good so that it explains to the general public what is really wrong with the Fed and why it needs to be audited (and abolished), otherwise he is going to end up delivering the Fed into the hands of the radical big government Left.


  1. Wenzel,

    To ask is to answer.

    By the way, any tips on how to be charming with scary leftists and statists, the Wenzel Way?

    Serious question. I need to work on my interpersonal skills as I seem to only make people want to ignore what I'm saying and dig in their heels further anytime I come into contact with the "others."

  2. @ Taylor

    Give me a couple of days, I think I will do a post on it.

  3. "... otherwise he is going to end up delivering the Fed into the hands of the radical big government Left."

    What do you think we've had for the last 95 years?

  4. I wonder how much the poor is going to like heavy price inflation on food, clothing and energy. I am assuming that the left will favour price-fixing all basic commodities.

    I wonder how much the poor is going to like shortages of food, clothing and energy. I assume that a leftist government would take control of these markets to guarantee "fair distribution".

    I wonder how much the poor is going to like no food, clothing and energy. I assume that the leftist government will in the end run out of "rich people". When a loaf of bread costs $200,000 and you have to stand in line for a day to purchase it - those tax hikes for "rich people" may become somewhat troublesome.

    I wonder what is happening to the world ....

  5. The principle to apply here is, well, PRINCIPLE. No dark secret helicopter drops targeted to the money elite. Honesty is the best policy. Period.