Enemy Of The State: The Federal Reserve
The Uneducated War Upon "Commodity Speculators"
I continue to be amazed, even to this day; just how many people don't get it. I would have thought what's going on with the Federal Reserve would have been common knowledge by now, but I guess I'm wrong. On every street corner I walk, I hear people whine, cry, and lament over gas prices. As I said a while back in one of my earlier Hubs, the price of oil isn't going up, merely the value of the dollar is going down. In fact, oil prices are going down relative to silver. Many are calling for action of the revolutionary nature, which is a refreshing change of pace, if only their anger wasn't so misplaced. Some still believe the government should save them from despair by regulating gas prices. Many are blaming "commodity speculators" for ramping up the prices of everything imaginable, from crude oil to beans. We've got to the point now that if people still don't get it, they never will.
Normally I wouldn't be too concerned over the displayed idiocy, the problem is this time it could have larger implications that could actually affect those of us who are properly prepared. There's talk of clamping down on "commodity speculators." Ben Bernanke is deliberately blaming the commodity speculators for the price inflation. What defines a "commodity speculators" would be so vague to say it’s preposterous. What exactly do such people complaining over commodity speculators expect? Will the government raid the homes of everyone who is stockpiling commodities? Because truth is told, you could have bought a cotton sweater, popcorn, gold, silver, copper, oil, rubber, wheat, etc. and you would have seen "profits" of in and around 50% to 500% the past two years. Does that suddenly make you a genius investor? No. Are the prices increasing because you're hoarding material and that's somehow "manipulating the market"? No. The prices are increasing because the Federal Reserve, the institution involved in organizing America's monetary policy, is printing tons of money through "quantative easing". Essentially, someone innocently trying to stock up food would fit the definition of a "speculator" because their shelves would increase several times in value relative to the U.S dollar. Should the state seize the food from the "evil speculator" just because he or she was prepared?
Here's a simple, yet humorous and educational cartoon, which explains how inflation and the Federal Reserve work. Consider this my last ditch attempt to get people informed
Inflation 101: The Federal Reserve
So What Is The Federal Reserve?
The Federal Reserve System is the central banking system of the United States. It was created in 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.
It's important to note that the Federal Reserve is neither federal nor a reserve. The institution is a private enterprise; it's as federal as Federal Express. It's also not a reserve. There's currently nothing of substantial value housed in the Federal Reserve. There's no gold or silver bullion. There are no investments to be used of any kind in the event of a state emergency that would require reserve funds.
The responsibilities of the Federal Reserve are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions. The Federal Reserve maintains all sovereign rights to enforce these policies as it deems necessary, mostly because when it comes to monetary policy, the Federal Reserve supersedes the U.S government in authority. The Federal Reserve, a private enterprise, is essentially the employer of the U.S government. According to the Board of Governors of the Federal Reserve, they're an independent body within government in that "its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government."
The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the Federal Open Market Committee (FOMC). The FOMC is the committee responsible for setting monetary policy. There are twelve regional Federal Reserve Banks located in major cities throughout the nation, along with numerous privately owned U.S. member banks and various advisory councils that are kept hidden from the general public.
The chairman and vice-chairman for the Federal Reserve are chosen by the President and have to be confirmed by Congress; however the Federal Reserve Board of Governors reserves the right to veto any decisions for candidates the President makes. While the Federal Reserve has both private and public aspects, it's apparent when following their convoluted structures that ultimately America's entire economic system and fate is put in the hands of a few unelected men that make up the Board of Governors.
Endgame: Clamping Down On "Commodity Speculators"
I will conclude this Hub by stating that the end of civil society as we know it will come from people ill prepared scapegoating "commodity speculators" for their misfortunes. How quickly people forget what Ben Bernanke and the Federal Reserve have done. People are gullible. Deflection and scapegoating are some of the oldest propaganda in the books when running a fascist nation. Starting today, there's nothing stopping anyone from putting their fiat currency in hard assets, and protecting themselves from what will be devastating hyperinflation brought to you by the Federal Reserve. Believe me when I say that it's not too late. The prices for commodities will continue to inflate at astronomical levels, not only in America, but worldwide, as long as the USD stays the World's reserve currency.
-Donovan D. Westhaver