Posts Tagged ‘gold standard’

The Popular Uprising Against the Fed

February 13, 2009

(that title makes it sound like I’m soon gonna be calling for “agrarian reform!” and nationalization of industry, doesn’t it?  lol)

Here’s a great article from The American Conservative magazine examining the fading of the taboo against criticizing the Fed.  Or perhaps not taboo but exclusion from discourse (kinda reminds me of Chomsky’s manufacturing Consent, where he accuses the MSM of defining the terms of debate within exclusive parameters and/or not giving voice to viewpoints that greatly upset conventional wisdom…or power).  It looks at Ron Paul as an icon of this resurgent unease or even hostility toward the Fed, and examines how he served to bring the debate into the mainstream and have it somewhat ratified via his virulent, empassioned supporters.

It also makes a pretty convincing case for the wisdom of the Austrian school of economics, a long-time critic of fiat money (money that is created within a system, as opposed to currency that is backed by commodities like silver or gold) and central banking.  I confess I am quite confused and uninformed when it comes to macroeconomics; an uncertainty that grates at me when I see convincing, albeit frivolous and surely suspect, internet movies decrying international banking and central banking (along with 9/11 and, in this particular movie: Zeitgeist, religion).  I just wish I knew more so I could put suspicions to rest.

Any Citizens out there wanna share knowledge on the subject?  I struggle with: A) Does the Fed “lend” money to the US government, and charge interest? (If so, what on earth is anyone doing charging our gov interest for the money our gov creates?)  B) Are there good reasons why not to be suspicious of the enormous amount of power concentrated with the Fed, especially now that we are handing them huge sums of money?  C) Why did we get off the gold standard?  Was this a good thing?  Ron Paul sure made sense when he ranted against this on the campaign trail (and yes, I still commend his courage in mentioning ‘blowback’ in the context of 9/11 at mainstream debates…more whispers of Chomsky).