Tuesday, July 21, 2009

Wheels Within Fed Wheels (Lew Rockwell)

Lew Rockwell blogs:

More and more victims are clamoring for an end to the Federal Reserve, and Ron Paul’s book could not be coming out at a better time. But this has also given an opportunity to battling interest groups within the Fed, the banks, and the state to claw for more power from each other, and us. When the Morgan, Rockefeller, and Kuhn-Loeb interest groups wrote the Federal Reserve Act, they wanted a state-empowered private bank on the lines of the first Bank of England, to cartelize the banking industry, to monetize state debt as needed, and to allow all the banks to inflate together with no fears of bank runs. This was too open a powergrab, so they designed the present public-private system — appropriate in the Fascist-Progressive Era — but with one difference. The NY Fed was to have control of open-market operations, that is, inflation, and to be in open league with Wall Street and the big NY banks. This too proved a bridge too far, so while the NY Fed is far more powerful than, say, the Kansas City Fed, the Board of Governors in DC holds most power. But with this latest crisis, and yet another Goldman-Sachs guy in charge, opponents of the NY Fed and its present relationships see their chance. All power may move to DC in any “reform,” and the Fed regional banks may be emasculated, and the central bank changed from a fascist structure to a communist one. After all, Karl Marx called for this in plank five of The Communist Manifesto. When previously untouchable institutions like the Fed or Goldman become attackable in the MSM, we can know that groups within the power elite are at each other’s throats. While it is interesting to watch, this is a reminder that there can be no real reform without abolishing the whole criminal enterprise, root and branch, and sowing salt in the ground where it stood.

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