The Creature From Jekyll Island

Bernanke has ZERO credibility based on his track record of misrepresentation and total failure in safeguarding the value of the US dollar. Fool me once, shame on you. Fool me twice, shame on me.

Between the "oh" and "ums" uncle Ben stumbles around "why would the American people want congress to control monetary policy?"

Perhaps Ben, because the constitution explicitly states in Article 1, Section 8 that Congress has the sole power:

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

To provide for the punishment of counterfeiting the securities and current coin of the United States

In principle the idea of a central bank with a flexible, fiat currency sounds great - much like a communist utopia sounds ideal to many at first. The problem is that the ups and downs of life cannot be eliminated no matter how hard we try and that human nature forces us to act in our own best interest even at bureaucratic levels in governments or central banks.

The United States has a long, storied history of fighting central banks and their banksters and many of the military conflicts it has endured have been intimately tied into currency control.

Although science has begun to lend itself further to economics whether it be through the Black Schulz option pricing formula based literally on rocket science or in the creation of patterns as seen in the Fibonacci cycle, it does not take upper level mathematics or physics, however, to understand that history has a tendency of repeating itself, or at least "rhyming" as Mark Twain put it.

Let's take a quick look at a few presidential quotations.

"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered." - Thomas Jefferson

"If Congress has the right under the Constitution to issue paper money,
it was given to be used by themselves, not to be delegated to individuals
or corporations." - Andrew Jackson

"As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war. God grant that my suspicions may prove groundless. - Abe Lincoln

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." - Woodrow Wilson

"The real truth of the matter is that a financial element in the large centers has owned the government since tv days of Andrew Jackson." - Franklin Delano Roosevelt

"The high office of the President has been used to foment a plot to destroy America's freedom and before I leave this office, I must inform the citizens of their plight." - John F. Kennedy

Spanning more than two hundred years, it's easy to see that the issues America has faced yesterday look a lot like those of today.

The United States will soon be forced to restore some credibility to the US Dollar by limiting its printing and ideally tying it in to some store of value. The printing press needs to be returned to congress and the practice of deficit spending and interest payments on debt needs to be curtailed. Although this will lead to a rapid collapse of the existing system, it is both inevitable and necessary. The credibility of the dollar is near its end and restoring it will be costly as holders of the new currency will call for collateral - backing by gold and silver.

One of Kennedy's final acts in office was Executive Order 11110 which required the Treasury Department to begin printing and issuing silver certificates for the remaining silver then in the US Treasury. Kennedy also signed a bill that day changing the backing of one and two dollar bills from silver to gold. After his assassination, these certificates were removed from circulation and the program terminated. We need to look at some type of system like this.

Although we all long for a perfect world, life happens and history has shown us that we have to fend for ourselves and protect each other from over zealous governments and banks. Andrew Jackson put it well:

"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society the farmers, mechanics, and laborers who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles."

– Andrew Jackson on the VETO OF THE RENEWAL OF THE SECOND BANK OF THE U.S.