Freedom News Blitz

WASHINGTON (Reuters) – The U.S. Federal Reserve on Tuesday proposed tough new credit card rules to protect consumers from potentially costly practices by lenders and moved to implement legislation enacted in May.

“This proposal is another step forward in the Federal Reserve’s efforts to ensure that consumers who rely on credit cards are treated fairly,” said Fed Board Governor Elizabeth Duke said in a statement. For the rest of the story click here.

Now, I have to admit I don’t possess any love for credit cards or credit card companies. In fact, I recommend avoiding credit card companies like mice or lizards should avoid wandering into a family of Boa constrictors. If credit cards are adding weight to your wallet or purse, then you might consider traveling much lighter.

You probably realize that too much debt threatens to break the economic camel’s back. In fact, the crushing load already has the economy on its scabby knees.

However, the problem with credit card abuse derives from the fact The Federal Reserve System manipulates interest rates by artificially lowering them, resulting in massive increases in the quantity of money. What’s the definition of inflation? Inflation is an increase in the quantity of money (money supply).

Let’s say that at a natural rate of 6% the supply and demand for money meet at the imaginary intersection economists create as a mental tool of analysis. If the Fed suddenly increases the rate to 7% the supply of money would outweigh the demand for it.

Unfortunately, the political and financial establishment thrives on easy money. So here’s what happens. The Fed lowers the rate of interest; let’s say to 4.5%, which creates an artificial demand for money. Of course, with the supply of money the same, the increased demand cannot be met. But wait a minute, the mighty Fed comes to the rescue by increasing the money supply.

I’m sure you can see how ridiculous a rate of interest near 0% is.

The Fed recklessly encourages the credit card companies to supply credit to anyone who hasn’t taken his last breath and can still fog a mirror. Obviously, this results in a higher than normal percentage of cardholders defaulting on their payments. Now, the credit card companies create ways and means of still profiting, some which seem to be rather anti-consumer.

Let’s get right down to the “nitty-gritty.” We are expecting the same entity that spawned our financial disaster to flex its muscles and reign in credit card company abuse. Are we out of our “cotton pickin’ minds” or what? Would we ask the fox to guard the hen house?

Apparently, all reason and sanity vacated the economic scene long ago. The Federal Reserve System along with our greedy, interventionist government is the problem. They maliciously attempt to cram socialism down our already parched throats. Do you know what brand of socialism the financial and political establishment plans to bless us with. Well, it’s a strange mixture of Nazism and fascism, run by humongous government, bloated banking and monopolistic corporations.

Fortunately the Fed is under fire for it monetary abuses. Do yourself a favor and order Ron Paul’s book End the Fed. It’s time to end the Fed’s iron grip on monetary policy—permanently.

Also, for your protection I offer you 2 valuable free reports—reports that supply you personal solutions to our long-term economic malaise.

Robert A. Meyer
The Libertarian Way

Let’s ask an important question. Since the Federal Reserve System controls our currency and along with the government determines where the newly created inflationary money goes, who is responsible for our current economic crisis?

Let’s ask another question. Who is responsible for every economic crisis we’ve experienced since 1913, the year special interests created the Federal Reserve System?

The Boom Cycle

We must face a hard fact that establishment economists and money cranks refuse to face. Plain and simple, increases in the quantity of money (money supply) cause economic distortions. During the past 25 years, the Federal Reserve System recklessly increased the money supply causing the stock market boom, the tech boom and the housing boom. When, the Maestro of Monetary Mayhem, Alan Greenspan lowered the Federal Funds rate to practically nothing (to counterbalance the effects of the tech collapse), he guaranteed there would be an unsustainable boom somewhere in the economy. Conditions dictated the inflationary money went into the housing market. Illusions are just that—illusions. All artificial booms end in busts.

To know that Alan Greenspan was a disciple of Ayn Rand and Objectivism must have caused much heartbreak for Objectivists. Of course, critics of Objectivism claim it’s a heartless philosophy.

The Bust Cycle

Let’s face it—even if the establishment won’t. The party is over. The partygoers wantonly consumed all the booze and drugs of false prosperity. Now is a time of hangovers and drug withdrawals. The addicts of inflationary money must go into rehab. The recovery will be long and painful.

Unfortunately, our government and the Federal Reserve System are attempting to keep the party going with massive injections of bailout money along with “gasp” close to 0% interest rates. It is all in vain. Lenders won’t lend money to people who can’t and won’t pay them back. The debtors are borrowed out. Of course, it is possible that all this inflationary money could cause a hyperinflationary boom—with the tragic result of goods and services disappearing from the marketplace. It definitely won’t stimulate the production of goods and services.

Trillions of dollars have “vanished” from the world economy. Trillions upon trillions more will “vanish”. This is a tragic joke. The money didn’t exist in the first place. It was phony Federal Reserve money. Individuals were relying on paper profits that didn’t actually exist. Bill Bonner calls the marketplace Mr. Market. Mr. Market has exposed it all as a fraud. Now he is attempting to restore wealth to its rightful owners—productive individuals, such as you, who actually produce value and those thrifty people who save money. That is what is a deflationary collapse is—restoring value to its rightful owners.

No wonder they fight the severe recession (the one they caused) tooth and nail. Heaven forbid that wealth is restored to you, me and other productive citizens, instead of remaining in the greedy hands of the parasites who attempt to run the show.

Something almost incredible is taking place, Ron Paul’s bill, H.R. 1207, which would require the Fed to submit to audits by the Government Accountability Office. The Fed is doing everything possible to derail this attempt at exposing it for the fraud that it is.

Surprisingly, people are taking Ron Paul seriously. You know, he released a book on September 16 called “End the Fed.” You can order it from Amazon.com.

Paul’s bill is an outstanding attempt to reveal the monetary policies of the Fed. Hopefully, his efforts are the beginning of the end for the Federal Reserve System. Let’s abolish the Fed for once and for all.

Robert A. Meyer
The Libertarian Way