Tuesday, September 30, 2008
A liberal calls for review of the 1913 Federal Reserve Act
Received from "Barry" this am:
Rep. Dennis Kucinich has gotten pretty salty in his denunciations of the bailout. Most remarkable is his reference to fractional reserves. Below is a link to the transcript of his comments on Democracy Now yesterday and that is a three graf extract. Note the second graf.
* REP. DENNIS KUCINICH: Well, this is really a fundamental issue in our society. Again, it’s all about how the wealth accelerates to the top and how work is not respected or rewarded for its own intrinsic value. We’ve really moved, you know. We’ve made a transition in our economy from industrial capitalism to finance capitalism. And with this debt-based economy that we have, where we keep—this public and private debt keeps exploding, as it has under—as it did under Alan Greenspan, quadrupling in a period of twenty years, we see ourselves in a position where the debt just keeps building and building and building, and we’re calling that economic progress. It is not.
* We need to challenge again the underlying assumptions about a debt-based economy, about whether or not we should revisit the 1913 Federal Reserve Act, which has an unfortunately privatized monetary system and created a system which includes banks having the ability to create money almost out of thin air with a fractional reserve. We have to look at the implications of that, maybe put the Federal Reserve under the Treasury and have the Treasury really be responsive to the interests of the American people and keeping the economy going.
* You know, we’re looking at the potential here for some positive changes, if we address them directly. But what this bill does, unfortunately, it just kind of helps things keep going until the next trillion-dollar crisis, which is coming in a few months when the Alt-A or jumbo mortgages, which are being reset in ’09 and 2010, will find their maximum financial stress on marketplaces. So I think that you have to realize that this—what we’re doing today is not going to forestall a recession, it is not going to solve the problem of a collapse of mortgages, it’s not going to help homeowners.
Click here to read.