The Central Bank and Wall Street cronyism

David Stockman at his website below posts a Wall Street Journal article suggesting we end the Federal Reserve’s money monopoly. The author argues that we should have a choice of currency based on gold as an alternative to printed-paper promises from Washington, D. C.

The Fed (Central Bank) prints money based on nothing of value, holds our economy hostage to arbitrary interest rates, and has a crony relationship with Wall Street money changers.

Mr. Stockman a former Michigan congressman, budget director for President Reagan and a private equity investor knows a lot about corruption in our federal government and the cronyism with private investment bankers.

Stockman’s website and his 700-plus page book The Great Deformation (2013) are worthwhile for any serious student of the corruption of capitalism in America.

The book is a great historical reference, but quite readable. It’s in five parts beginning with Part I, a dramatic account of the 2008 $700 billion Troubled Asset Relief Program ginned up by former Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson to unnecessarily bailout several American companies. Stockman was suspicious of them promoting the “Great Depression 2.0.” He wrote,

Then, when the Fed’s fire hoses started spraying an alphabet soup of liquidity injections in every direction, and its balance sheet grew by $1.3 trillion in just thirteen weeks compared to $850 billion during its first ninety-four years, I became convinced that the Fed was flying by the seat of its pants, making it up as it went along. It was evident that the aim was to stop the hissy fit on Wall Street, and that the threat of a Great Depression 2.0 was just a cover story for a panicked spree of money printing that exceeded any other episode in recorded human history.


About R. E. Smith Jr.

Mr. Smith writes essays and commentary on politics, American history, environment, higher education and culture. He's been published in print media and at blog sites for about 25 years. Smith's formal education includes B.S. and M.S. degrees from the State University of New York and Syracuse University. He has earned a 21-credit hour Certificate in Professional Writing from the University of North Carolina-Wilmington. Training/work experience: NYS Ranger School; U. S. Army, Corp of Engineers; soil scientist and forester with USDA; Assoc. Professor at SUNY; real estate agent; small business owner.
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