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Posts Tagged ‘Ben Bernanke’

Gary northIn his February 1, 2012 article, Ben Bernanke: The Official Counterfeiter, Gary North says of U.S. Notes:

They were taken out of circulation in 1971, the year that Nixon took the country off the gold exchange standard. Today, we still see these words on Federal Reserve Notes: “This note is legal tender for all debts, public and private.”

The Federal Reserve’s Notes looked very much like the Treasury’s greenbacks until the U.S. Notes were taken out of circulation.

And they still do look like the Treasury’s greenbacks, since United States Notes are still valid legal tender, despite being taken out of circulation by the government (but not all private individuals) in 1971.

Here, he is giving the false impression that U.S. Notes are as irrelevant as currency in the United States since 1971 as a Roman coin with Caesar on it.

The U.S. Treasury Department states, as of April 29, 2012:

Both United States Notes and Federal Reserve Notes are parts of our national currency and both are legal tender.

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Gary northIn his February 1, 2012 article, Ben Bernanke: The Official Counterfeiter, Gary North states:

There used to be a legal competitor issued by the U.S. Treasury. We read on Wikipedia:

A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for over 100 years, they were issued for longer than any other form of U.S. paper money. They were known popularly as “greenbacks” in their heyday, a name inherited from the Demand Notes that they replaced in 1862. Often called Legal Tender Notes, they were called United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency. On the back, they give notice that:

This Note is Legal Tender for All Debts Public and Private Except Duties On Imports And Interest On The Public Debt; And Is Redeemable In Payment Of All Loans Made To The United States.

North has been known to derisively refer to supporters of the interest-free paper money as “Greenbackers,” showing how out of touch he is in calling Ellen Brown a Greenbacker, considering she says the issuance of paper money at the federal level is unconstitutional.

Notice how he later focuses his readers’ attention on an insignificant difference between the two notes:

The Federal Reserve’s Notes looked very much like the Treasury’s greenbacks until the U.S. Notes were taken out of circulation.

As if the look of the two notes is at all significant compared to the fact that U.S. Notes are interest-free, and no interest was due — or ever will be due — on them.

For more on interest-free United States Notes, see my article, The Federal Reserve lies about United States Notes (Lincoln Greenbacks).

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Jeff RenseOn March 23, 2012, I noticed that Jeff Rense’s site had linked to the mass media article by Reuters, Bernanke says gold standard won’t solve problems, with the editorial title, Bernanke’s Idiotic Lies About A Gold Standard. It is still there as of April 1.

Here’s all the article says about Bernanke referencing the gold standard:

Since the gold standard determines the money supply, there is not much scope for the central bank to use monetary policy to stabilize the economy,” Bernanke said. “Under a gold standard, typically the money supply goes up and interest rates go down in a period of strong economic activity – so that’s the reverse of what a central bank would normally do today.

First of all, a government-guaranteed gold standard — which is what Bernanke is referring to — DOES determine the money supply, since a certain percentage of the money supply is backed by gold, by law, under such a standard. Bernanke is also right that under such a standard, “the money supply goes up and interest rates go down in a period of strong economic activity.”

The money supply goes up because it’s usually only partially backed by gold — up to 40% prior to the last gold exchange standard in the U.S. that ended in 1933. The Roaring Twenties followed by the Great Depression is the best example of this. It was the low interest rates that contributed to the easy-money situation that extended banks far beyond their ability to meet eventual customer demand for their money in cash or gold.

The implication of Rense’s link is that a government-guaranteed gold standard is somehow good, which is ironic, given that he considers the Protocols to be an authentic document, and in that document, it mentions using gold to control economies! (Note: I don’t regard the Protocols as authentic, despite its accurate statements about a gold standard —  but he does):

“22. YOU ARE AWARE THAT THE GOLD STANDARD HAS BEEN THE RUIN OF THE STATES WHICH ADOPTED IT, FOR IT HAS NOT BEEN ABLE TO SATISFY THE DEMANDS FOR MONEY, THE MORE SO THAT WE HAVE REMOVED GOLD FROM CIRCULATION AS FAR AS POSSIBLE.”

Was this simply a case of editorial license for the sake of getting thousands of cheap clicks, or does he really support a government-guaranteed gold standard?

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The north face of the Marriner S. Eccles Feder...

On November 6, 2011, the Economic Collapse Blog published the article, 14 Reasons Why We Should Nationalize The Federal Reserve.

On March 21, 2012, they published the article, Ben Bernanke Tries To Convince America That The Federal Reserve Is Good And The Gold Standard Is Bad.

At the end of the article, the author, Michael Snyder writes:

When you take an honest look at the Federal Reserve, there is only one rational conclusion: Congress should shut it down, lock the doors and throw away the key.

On November 12, 2011, I wrote the article, Lew Rockwell says MSNBC is blocking their regular contributor, Pat Buchanan, from discussing his new book, but what about LewRockwell.com keeping certain articles by its regular contributors from its readers?

In it I challenged Lew Rockwell to hold himself to the same standard he expected of MSNBC regarding his selective publication of articles by the Economic Collapse Blog, in publishing lots of depressing articles about how poorly the U.S. government is currently functioning but none of the ones about improving government.

What happened in the past four months to make Michael Snyder throw his 14 reasons for nationalizing the Federal Reserve completely out the window?

See my forthcoming article for my guess.

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Ben Bernanke, chairman of the Board of Governo...

On February 6, 2006, Ben Bernanke took an oath to the Constitution at his swearing-in ceremony as Chairman of the Board of Governors of the Federal Reserve System:

From C-SPAN’s video and transcript:

RAISE YOUR RIGHT HAND AND REPEAT AFTER ME. I, BEN F. BERNANKE, DO SOLEMNLY SWEAR THAT I WILL SUPPORT AND DEFEND THE CONSTITUTION OF THE UNITED STATES

The significance of this is that as a federal officer, despite being the front man for a privately owned cartel, he can be prosecuted for any violations of the Constitution that he swore to uphold.

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