[peaceandlove]

Article Posted at http://www.gcnlive.com

'Abolish the Fed' by Paul-Martin Foss

Remarks delivered at the End the Fed rally in Washington, DC, November 22, 2008, across the street from the headquarters of the Federal Reserve Board of Governors.

Original Article Here: http://www.lewrockwell.com/orig9/foss1.html

Excerpt:

The Fed's manipulation of interest rates creates the boom-and-bust business cycle that we have become all too accustomed to in this country. At present we find ourselves moving toward the bottom of a particularly destructive business cycle. Our policymakers unfortunately do not understand the role of the Fed in the creation of business cycles. Instead of ending the Fed's manipulation of interest rates, the Fed is encouraged to embed itself ever deeper in the economy, involving itself in bailouts, creating new lending facilities, and acting as the guarantor of financial market stability. Until the Fed ceases its loose monetary policy, there will be no economic correction. There may be short-term improvements in the economy, but once the Fed's policy tools are shown to be ineffective, the end result will be a cataclysmic economic depression.

Recently the Fed has been heavily involved with the actions surrounding the Wall Street bailout, injecting trillions of dollars of credit into the financial system. Reserve bank credit is up almost 150% over the past two months, while the monetary base has increased 75% in that same time frame. If the people across the street don't get their act in gear, this country could face a hyperinflationary crisis the likes of which has not been seen in the First World since Germany in the 1920s. You all have undoubtedly seen photographs of people filling their wheelbarrows with paper bills in order to go grocery shopping. Well, I have two wheelbarrows already, so I'm ahead of the curve.