The Plebian

Pretty Economic Pictures for the Illiterate Masses

Thomas Jefferson’s view on the Federal Reserve

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You can take off your tin foil hats, I am not advocating the abolishment of the Federal Reserve, but I am very concerned that the quasi-governmental agency needs a makeover of transparency and accountability.  

Over the last several decades and until 2008, inflation was a constant.  And by inflation, I am using the Austrian econ. definition of simply an increase in the broad money supply, or M3 data as tracked by the fed.  Now in the wake of the credit freeze we have entered a new paradigm of deflation.  Home prices are declining, the Dow has basically lost half its value and even things like cheese and shoes are becoming less valuable (or more affordable depending on your perspective).

But these conditions are by no means unique and even some of our founding fathers have provided insights to this phenomenon…

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Thomas Jefferson, (Attributed)
3rd president of US (1743 – 1826)

Everything is just history repeating.


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