Image: Former United States Congressman Ron Paul, Republican of Lake Jackson, spoke about the economic damage the Federal Reserve Board has caused on CNBC in October, 2019, and on many other occasions.
The Golden Hammer Staff Reports
Conroe and Washington, D.C., February 2 – Government is no longer for the people. Rather, government meets and operates away from the citizens as much as it possibly can.
This series examines some examples of the tricks local government leaders – perhaps the better term is “hiders” – utilize to eliminate any possibility of public knowledge of what they’re actually doing. There are tens of thousands of examples of this phenomenon in Montgomery County, known as “the most corrupt county in Texas.” This six-part series will focus on two of the perpetrators of dark meetings and dark operations, the Magnolia Independent School District (Magnolia ISD) and the Montgomery County government.
Before returning to the local examples of the damage government secrecy causes, it’s important to look at one of the worst examples of secrecy in American history, when the United States Senate voted to create one of the most damaging federal institutions in the 244 years of the Constitutional Republic: the Federal Reserve Board, which supposedly acts as the central bank of the United States but has become an accomplice to so much more of the corruption with is the United States Government.
In 1913, the United States faced the serious prospect of a world war. While World War I had not yet begun, tensions in Europe came close to the breaking point. It would only be a few months until the First World War would begin. While the United States sought to stay out of the war for as long as possible, President Woodrow Wilson knew that it was inevitable that European allies would ultimately drag the United States into the conflict.
The serious question arose: how would the United States finance the war? As Alexander Hamilton, the first Secretary of the Treasury, observed, “In both peace and war, governments usually have only three ways to pay their bills: they can print, they can tax, and they can borrow.”
Central banks are the means by which governments print and borrow money. Hamilton knew that, so he argued for a national bank, a proposal which was extremely controversial.
Founding Fathers, such as Thomas Jefferson, were very wary of banks in general and believed that central banks served wealthy financiers and bankers rather than the people of the United States. Almost a quarter of a millenium later, former Congressman Ron Paul, Republican of Lake Jackson, observed during an interview on CNBC, “The Federal Reserve allows the federal government to overspend; otherwise, we couldn’t afford to police the world…They think they can do economic planning through manipulation of money supply and interest rates; that’s the price we pay for them. They’re destroying markets and creating a socialist monetary system…The Fed is trying to manage something that they can’t manage. It’s central economic planning through the manipulation of money and credit. We’re so far removed from capitalism and yet socialists blame us for what they are claiming happens in a free market economy.”
Paul has argued that the only way to avoid the fiscal meltdown of the United States government is “We have to cut the spending, get rid of the deficit, and get the Federal Open Market Committee [the policy arm of the Federal Reserve] out of planning.”
In recent years, the Federal Reserve Board and its Open Market Committee saved large private banks by printing dollars and putting the good credit of the United States Government in an even more precarious position than it had already been after years of deficit spending. The Fed chose to prop up the “too big to fail” financial institutions at the expense of American taxpayers. When the China Virus hit American soil, Congress and the White House chose to spend over $4 trillion to stimulate the economy, after the government, in sheer panic, rapidly destroyed the economy through irrational mandates shutting down businesses and ordering people to remain in their homes.
From where did that off-budget money come? The Fed created it out of thin air.
How did an institution as reckless as the Federal Reserve Board come into existence?
In secrecy and darkness with little open policy discussion among American citizens and their elected representatives in Congress. Rather, members of the United States House of Representatives and the United States Senate chose to shove through the creation of the Federal Reserve System in the darkness of holidays when they hoped that neither the public or the national news media would give the adoption of the terrible policy the attention it deserved.
The United States Senate adopted the Glass-Owens Act, also known as the Federal Reserve Act, at 6:00 p.m. on December 23, 1913. Since the Nation stood at the precipice of the Christmas holiday, few eyes watched the actions of Washington, D..C. In fact, out of the membership of the United States Senate, 27 Senators had already gone to their homes for the holidays. The Senate adopted the conference report by a vote of 43 to 25, with every Democrat present voting for the measure and all but four Republicans voting against it. Most senators immediately rushed to Union Station to catch trains home for the holidays, while the chief sponsors went to the White House. President Wilson signed the Glass-Owens Act with little fanfare and even less attention.
Operating in darkness works very effectively. When the citizens sleep, government policymakers thrive in their freedom from watchful eyes. “Leaders” made history in the form of a very questionable decision where they created a supposedly independent federal institution with vast power and little genuine oversight.
The citizens have paid a dear price ever since.