The Fed Is Your Friend, Citizen, So Shut Up

Check out this graphic on the Federal Reserve.

Let me summarize it for you: the Fed is run by super-smart guys and plays a really, really important and indispensable role in the economy. It was never, ever intended to help Wall Street or the big banks. That’s crazy talk, that is. No, the Fed gives us a nice combination of growth and modest price inflation, since that’s the trade-off it’s faced with. Anyone who might be opposed to the Fed must have only bizarro reasons for doing so, because all the smart people love the Fed. Oh, and in summarizing the points made by Fed critics, let’s make sure never to mention the words “business cycle,” “debasement of the dollar,” or “financial bubbles.”

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  • Goins Report

    For the most part, the kid remained skeptical the entire time…i was sort of impressed.

    Notice he got most of his information from the Internet.

  • gil

    Why are you such a pimp Tom?

  • http://plenarchist.wordpress.com/ plenarchist

    So if the Fed was created to end bank panics, why was it necessary to create the FDIC and FSLIC? Seems like Big Bro admitted the Fed was a failure in 1933…

    If I remember right, the “full faith and credit of the United States Government” came to less than 40 cents on the dollar after the S&L crisis. Which is kinda funny anyway given the tax cattle just pay themselves to cover the losses… plus Big Bro’s cut of course.

  • Gamble

    The flow chart is crazy.

    They clearly admit they never take in enough yet they always
    have enough collateral to cover principle plus interest.

    Geesh, too bad I cannot create infinite debt for myself.

    This FEDFRACFIAT system will never self-correct or crash. It
    is propped up by humanity’s perpetual increase of ingenuity, technology and efficiency.

    The reality is, we should only have to labor about 10 hours
    per week to provide a modest living for ourselves and family. Instead most families
    are 2 incomes working 80 hours.

    Do the math; the guberment is stealing 70 hours of your family’s
    labor with their convoluted flow chart…

    And to the Christians and Jews, what the heck do you think Exodus
    was all about, the only difference is you whip yourselves. Suckers…

  • Niceguy

  • http://twitter.com/JoeFLogan Joe Logan

    Internet bad! Question the (supposed) compromise of Democrats and Republicans bad! This thing was obviously writ like true propaganda, no real debate. Well if we question the Fed we must believe Elvis is still alive!

  • http://www.facebook.com/matt.tanous Matthew Tanous

    I especially like the use of a quasi-Phillip’s curve analysis supposing a link between growth rates and inflation. Question-begging is a great way to prove you are right!

  • ind_liberty

    ‘The Federal Reserve is a public private decentralized banking system that is regulated and independent within the US government.’ Oh I get it, the fed is a cartel that wanted to destroy market competition within the banking industry and politicians in government look the other way because the fed’s debt based money creation powers allows our gov’t officials to make and keep promises to stay in power, damn the consequences.

  • Liberty Belle

    Does seeing things like this infuriate anyone else, or do I maybe just need to find some more hobbies? I’m actually a bit upset with myself for even clicking the link and giving the page a visit. Here’s hoping it stays in the dark corners of the internet where no none-thinkers can stumble across it.

  • Gamble

    Jess Bachman and Wallstats is a real company and he sales his
    stuff to unsuspecting victims.

    If we cannot refute his “wallstats” we have lost.

  • Josh

    “The Federal Reserve is a public private decentralized central banking system that is regulated and independent within the US government.”

    I count four contradictions in that one sentence alone. Disinformation at its finest.

  • Rob Nabakowski

    That’s basically where I stopped reading. I was just on a sports message board and thought that the ignorance and outright stupidity there could not be trumped, but then Tom goes and links to someone who manages to do just that.

  • http://www.facebook.com/MichaelBBurch Michael Burch

    Instead of admitting that the Fed prints money, they say it “buys currency from the US Mint at manufacturing cost, about 4 cents per bill.” You can’t make this stuff up.

  • Anonymous

    This whole sheet is nothing but propaganda.

    I love the “clearly failed” bit about the Jeckyll Island group. Even though they got exactly what they wanted, and even though they essentially selected Wall Street Banker Benjamin Strong as the first head of the Fed, yeah it failed. It gave them exactly what they wanted, but it “failed”.

    This graphic also completely misrepresents the beliefs of the Democratic Party in 1913. They weren’t populists (as they were pre-1896), they were progressives, and progressives are elitists. They believed in a centrally planned, managed economy. A Wall Street-controlled Fed is completely consistent with their beliefs.

    It also misrepresents the Republican views of the time. The plan was originally proposed by the Republicans, as “The Aldrich Plan” in 1911, named for Rhode Island senator Nelson Aldrich (Rockefeller’s brother-in-law, and the man for whom Nelson Rockefeller was named). When the Democrats took power, the power brokers took Aldrich’s name off the bill, and went about selling it to the Democrats. The two parties weren’t all that far apart then (both were essentially progressive), so it only took them a year to finalize it.

    The Philips curve has been debunked for 40 years. Time to let it go.

    It gives no explanation of the 19th century panics.

    It neglects any mention of the downturns after the creation of the Fed.

    You can listen to Murray Rothbard’s lectures on this. http://www.youtube.com/watch?v=Ta7q1amDAN4

    Or better yet, he’s got a recorded lecture series that runs this whole thing together from the 1870’s on forward available on podcast. It’s worth it just for the lines about “it’s good to be Rockefeller’s brother-in-law”.

    Rothbard shows this graphic for what it really is, propaganda, and really lazy, pedestrian, silly propaganda at that.

  • Gamble

    A Visual Guide To the Federal Reserve by Jess Bachman and
    WalStats = EPIC FAIL!

    EPIC FAIL!

    EPIC FAIL!

    EPIC FAIL!

    Stick that in your internet pipe and smoke it, Jess Bachman.

  • Z@Z.com

    It would be great to see someone put something together that offers a counter point to each of the statements in the graphic.