“2 Debates and No Mention of the Fed: How Is that Possible?”
That was the headline that I read yesterday on Yahoo Finance. In my analysis of the first presidential debate and the vice presidential debate, I noted this point. The Federal Reserve was not mentioned once either by the moderator or by any of the candidates.
This is not a coincidence. What Ron Paul has worked so hard on to bring to the forefront, the establishment is attempting to hide.
There has been some talk of the huge debt and deficits (although neither Romney or Obama have any plan to solve it) and yet the Fed isn’t mentioned. If the central bank didn’t exist, then there is no way that a huge national debt could exist. It would still be possible for the government to borrow money, but interest rates and buying would be dictated by the market. Without a central bank to create new money out of thin air to buy government debt, the amount of debt would be somewhat limited.
We can see this by looking at state and local governments. They have, for the most part, been forced to tighten their belts. If they continue to spend money they don’t have, then interest rates will eventually go up. Eventually, these governments have to either find more money, cut spending significantly, or else file for bankruptcy. They can’t rely on a printing press.
The U.S. government is different, not because of its size, but because of the central bank. The Federal Reserve can keep the game going much longer through the use of monetary inflation. It simply monetizes government debt, keeping interest rates artificially low and bond prices up.
Without the Fed, there probably would not have been a war in Iraq. There may or may not have been a war in Afghanistan, but it probably wouldn’t have been an ongoing occupation. Without the Fed, there wouldn’t have been a big housing bubble. There wouldn’t be a lot of the welfare programs that currently exist. We probably wouldn’t have Obamacare.
The Fed is what allows Congress to spend recklessly. It is the main cause of the boom and bust cycles that we have. It is partially responsible for the high unemployment. It is almost completely responsible for overall higher prices.
Aside from the fact that Congress could end the Fed’s monopoly over money, the Fed is, at least in some ways, more powerful than either Congress or the president when it comes to controlling the economy. Yet, with all of the talk about the economy, there has not been one mention of the Fed in these debates so far.
This is why the internet is so important. We can see issues discussed that get little play by the establishment media.
Remember, when they get you asking the wrong question, they don’t have to worry about the answer. This is why we have heard nothing about the Fed so far. But the good news is that we can find the right questions through other media sources now. We don’t have to get all of our news from television and newspapers. In fact, I would recommend that you get as little as possible from these sources.