Remember those days of not that long ago when Allen Greenspan was chairman of the Federal Reserve? Recall that the well known student of Ayn Rand objectivism was called The Bubble King?
Bubble King! What a ring it has and how the name was deserved since Greenspan richly earned it. America marched in lockstep to the bubble scheme of the moment.
America had the dot com bubble at one point. There were those cheerleaders on CNBC from Wall Street who kept telling us that only the doomsayers were saying that those dot com stocks were overvalued, urging Americans to buy more.
As is the case with bubbles, they turn into busts, and those alleged doomsayers were correct. Just ask Bill Gates about the plummet that his Microsoft stock took after the smoke puffs vanished and the cold, harsh wind of reality set in.
So what do you do if you are Bubble King and one bubble bursts? You move on to the next bubble, and so it was with those home mortgages.
In fact, why not make it risk free for certain folks and send off speculative junk packaged with fancy names? There’s nothing like good old swaps and derivatives to substitute for what used to be a manufacturing base.
Those super hot mortgage deals that looked too good to be true it turned out really were “too good to be true.”
What was the Federal Reserve all about as originated in 1913? It was really a cartel, a cabal of big money, the muscle flexing economic honchos feeling their oats with their expansive controls as the government and citizenry marched to their tune.
So where has this cartel of Goldman Sachs, Citibank, Chase Manhattan et al led America? Think about the federal rip-off next time you see a new tent city erected.
When the bubble bursts there are harsh consequences for numerous people who suffer mightily so the rich cartel masters can enjoy unrivaled levels of luxury.
What abut the constitutionality of the Federal Reserve system? Is this kind of gigantic cartel monopoly what the Founding Fathers had in mind?
Article 1, Section 8 of the Constitution seems to hold a different ring than what was conceived in 1913. It reads:
“The Congress shall have power … to pay the debts of the United States … to borrow money on the credit of the United States … to coin Money, regulate the Value thereof, and of foreign Coin, … and to make all laws which shall be necessary and proper for carrying into execution the foregoing powers … “
This begs the ultimate question of whether the Federal Reserve system that exists under private monopolistic control is constitutional.
Carrying the issue forward, at a time when the economic system has been effectively demolished through such monopolistic practices the feasible alternative would be following the kind of national banking system proposed by Alexander Hamilton.
A Federal Reserve Nationalization Act would provide a salutary step toward putting economic power back into the hands of the people. A new National Bank modeled under Hamiltonian lines would nationalize the speculative and monopolistic Federal Reserve System, placing it under the Treasury Department.