Dow at 10K...whooptidamndoo

"The Federal Reserve System is the central bank of the United
States. It was founded by Congress in 1913 to provide the
nation with a safer, more flexible, and more stable monetary
and financial system. Over the years, its role in banking and
the economy has expanded...

During the nineteenth century and the beginning of the twentieth cen-
tury, financial panics plagued the nation, leading to bank failures and
business bankruptcies that severely disrupted the economy."

Above is taken from the ninth edition of "The Federal Reserve System:
Purposes and Functions," and may be downloaded at Federal Reserve.

The Dow average hit 10,000 yesterday. When the Dow first hit 10K in '99: total U.S. debt was $24.6T vs $50.8T now, gold was $280 vs $1,070, oil $16.44 vs $74.80. I have seen in my short life: 21% interest, 1% interest, Cokes for a nickel, movies for a dime, coffee for a nickel, and the Dow at 1000. I've recently seen financial panics, bank failures, business bankruptcies, and even the federal government taking over General Motors!

Maybe the Fed should read their own book. Better yet, END THE FED!

Ron Paul Q&A: Audit the Fed, Then End It

By Sudeep Reddy, Wall Street Journal

For three decades, Rep. Ron Paul has waged a lonely battle in Congress
to abolish the Federal Reserve. But he has more foot soldiers across the
nation today, particularly after the financial crisis, who are leading
the drive for wider congressional audits of the central bank. (See
today’s Journal story for more on their movement.)

In his new book — “ End the Fed” — released today, Rep. Paul walks
through his critique of the central bank and lays out a strategy
(briefly) for eliminating it. We sat down with the congressman to hear
his views on a money system backed by gold, the Fed’s challenge of
withdrawing its stimulus and his legislation to audit the central bank.
Excerpts of the interview:

What would a world without the Fed look like?

You’d go back to the day that if you wanted to borrow money to build a
house, somebody would’ve had to save some money. You wouldn’t have zero
savings and all the credit in the world. That’s just a total distortion
of capitalism. Capital comes from savings. The part you don’t use for
everyday living which you have left over, you reinvest and you save or
you loan it out. We were living with something absolutely bizarre that
had nothing to do with capitalism. We had no savings whatsoever yet
there was all the credit in the world.

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