The November 22 “End the Fed” rallies raise a vital issue: it is past time to abolish the unconstitutional, illegal, and failed institution known as the Federal Reserve System, the privately owned central bank which has been looting and wrecking the US economy for almost a hundred years. We must end a system where unelected, unaccountable cliques of bankers and financiers loyal to names like Morgan, Rockefeller, and Mellon set interest rates and money supply behind closed doors, leading to de-industrialization, mass impoverishment, and a world economic and financial depression of incalculable severity. The Fed helped cause the crash of 1929, did nothing to stop the banking panic of 1932-33, and is the main cause of the $1.5 QUADRILLION derivatives crisis which is devastating the world. The Federal Reserve System is Wall Street’s murder weapon against the United States, and the Fed must be stopped.



The purpose of abolishing the Fed is to get re-industrialization, economic modernization, full employment, and rising standards of living for all the people. Contrary to monetarist fetishes, the value and soundness of currency in the modern world are determined by the ability of a national economy to produce physical commodities that the rest of the world wants to buy. The decline of the dollar has its roots in the wanton destruction of the US industrial base initiated by the Trilateral administration of Jimmy Carter and Fed boss Paul Adolph Volcker with his 22% prime rate. Over the past forty years, the US standard of living has declined by two thirds, and the country has become a post-industrial rubble field, a moonscape monument to the folly of a post-industrial service economy. If you want to go back to sound money, you must gear up modern industrial production so that the world will need dollars to buy goods manufactured in this country. No amount of gold will do the trick.



Gold has a critical role to play in a new international currency system, but returning to a gold coin standard would create the most ferocious deflation of all time. Got any credit card debt? If you do, a gold coin standard would make it infinitely harder to ever pay it off. You would be slaving for the rest of your life to pay off a $5,000 credit card balance, or less.



The United States is blessed by the world’s greatest tradition of economics, the American System of political and national economy. Contrary to monetarist mythology, the American System never had anything to do with free trade or “free markets.” It is a tradition of protectionism, mercantilism, and dirigism. It starts with Governor Winthrop of Massachusetts Bay in the 1600s, who promoted industry and launched a sovereign currency. Benjamin Franklin, the founder of the post office, was another dirigist. George Washington was always devoted to infrastructure projects, and Alexander Hamilton created the First Bank of the United States, without which the new nation would have collapsed into poverty, chaos, and a return of British monetarist rule. James Madison created the Second BUS, again to ward off chaos. Henry Clay coined the term of The American System, and it meant a national bank, a protective tariff, and national infrastructure financed by the federal government. Daniel Webster tried to create a third BUS, and when he fell short the slide into slave power and civil war resulted. Friedrich List, Matthew Carey, Henry Carey, and Justin Morrill were American System economists who influenced or advised Lincoln. The rise of the US as the world’s greatest industrial power came thanks to a protective tariff and a controlled currency, the greenbacks. When Wall Street imposed the Cross of Gold, the American System tradition was continued by the Populist Party. The New Deal, the fruit of mass struggles and the rise of the labor movement, provided a way out of the Herbert Hoover depression by forcing the Morgan-controlled Fed to knuckle under to the FDR presidency. JFK tried to revive the New Deal and break the power of the Fed, and was assassinated by the financiers with the help of the CIA.



