Great Summary of How the Fed Steals from Us

I love a good blog.

In Tom Mullen, The Fed Audit Goes the Way of the Tea Party (May 18, 2010), the writer brilliantly sums up truth about the Federal Reserve. In his piece, Mullen is lamenting the Congressional failure to make the common sense change to federal law allowing Congress to look behind the Federal Reserve curtain.

It is still amazing that not even our own Congress gets to see details of what the Fed is doing with our monetary system. South Carolina Senator Jim DeMint is trying to get an audit enacted into law. See The Federal Reserve Sunshine Amendment, Senate 604.

The horrible financial regulation bill at one point actually included DeMint's "audit the fed" bill as an amendment. (I wrote about that "financial reform" monstrosity, which sadly is about to reach the Senate floor, in Dodd's Bill is TARP II--It Guts the Constitution (Apr. 26, 2010).) The audit text was likely added as a political enticement. However, the audit provision in Dodd's financial regulation bill has now been watered down and does not allow Congress a true and full audit of the Fed.

Mullen is aware of these negative developments for America. This is why his piece laments the deterioration of the patriotic effort to enact law which would allow an audit of the Fed.

I'm more of an optimist than Mullen. But his article is worth reading just for the clarity of Mullen's writing. I love his summary of how the Fed steals from us.

The principle is each individual's right to keep his own property, which the Fed is completely antagonistic to. The Federal Reserve System is an instrument of theft. Even if managed flawlessly (which it never has been) by its government-appointed central planners, the Fed would still accomplish every one of its goals by taking property from some people and giving it to others. It is no less a wealth redistribution scheme than Medicaid, food stamps, or Social Security. The only difference is a cosmetic one. Instead of clumsily removing dollars from Person A’s bank account and depositing them into Person B’s, as Congress does through taxation and appropriation, the Fed operates with a more graceful subtlety. It allows Person A to keep his dollars while merely creating new ones for Person B. However, Person B’s new purchasing power has not been created. It has been stolen from Person A, whose dollars are now worth something less than they were before the new dollars were printed.

Mullen continues, "It is a sobering reality that any real understanding of liberty has been completely eradicated in the minds of most Americans today. Instead, we have become a collection of special interest groups, all competing with each other politically for other people's money. Our "progressive" education system has rendered most Americans completely incapable of conceiving that there is an alternative to a government-directed economy."

My reaction is that as long as we have writers like Mullen who can tell the truth, we have hope. We know the MSM is not covering the truth so it is up to guys like Mullen to wake us up.

I believe the American people are much smarter than their education system. They are smarter than what Mullen thinks. I do not believe all will be lost until the entitlement-minded segment of American reaches a majority. Until that happens, we can believe a massive political correction is still a decent probability.

I see it as still very possible now because relative to the rest of the world, our society is still one of the most free. (That! is a sad statement about the rest of the world.) If we can unshackle our American economy from the stifling federal regulations, we can unleash a free market that will explode globally.

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