Long, long ago, doing our best for others meant bringing ourselves into the streets, where the political machine could not touch us. Those days of yore entailed missiles in October, a place called Vietnam, a precarious risk for defenders of the status quo and outright danger for those who challenged it. ML King and JF Kennedy met early demises. Both were shot dead in the summer heat of American discontent, one a challenge to the civil establishment, the other an aggressor against the financial shadow government.
With American Liberty slipping into the abyss and our country dissolving before our very eyes, Lyndon Johnson not only maintained the status quo, the bloody war, the Federal Reserve, the high taxation, and the conscription, but he also managed to exponentially increase the size of the welfare state. Only Bush and Obama have come close to the terror and destruction wrought upon our nation during those times.
Now, in a world struggling to overcome the New World Order, a manufactured credit crisis provides another opportunity for both the principled and practical. At present, 247 men and women of unknown and questionable principle stand with one man of unparalleled integrity, Dr. Ron Paul, to question the fountain of corruption from which stems all American corruption, both political and financial.
Just a decade ago. Dr. Paul introduced legislation similar to HR 1207, the “Audit the Fed” bill, and inspired exactly zero co-sponsors. Now, we have 247 congress critters to show how far we’ve come and disturbing the beast in its process of reaching for empire on its own.
The system retaliates with impunity.
When asked by Rep. John Duncan on Thursday about the fact that a majority of Congress is co-sponsoring Ron Paul’s HR 1207 bill to audit the Federal Reserve, Ben Bernanke responded:
Ben Bernanke: “My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
That threat is serious and severe, to deliberately ruin the economy, forcing every man, woman and child in a nation of 300 million to suffer for the sake a smitten few. Ironically it has already been carried out. It would take over $21 today to buy what $1 would get you in 1913, when this, the third US central bank, was born.
The Second Bank of the United States was run by a genius named Nicholas Biddle, who graduated from Princeton as the class valedictorian at age 15. The bank had a twenty year charter, which Jackson refused to renew. It culminated in a failed assignation attempt by a man with ties to Biddle.
Jackson believed that his reelection was a mandate from the people to break the power of what he called “this hydra of corruption,” the Second Bank of the United States. To accomplish this, Jackson decided to withdraw government money from the bank to pay current expenses and to deposit future government revenues in selected state banks. These banks were called pet banks. Jackson appointed Roger B. Taney of Maryland as secretary of the treasury to carry out this policy after his two previous secretaries refused.
Bank President Biddle and his congressional supporters, led by Clay and Webster, were determined to save the bank. Biddle used the bank’s money to buy political favors. In 1834 the Senate passed a resolution of censure against Jackson and refused to confirm Taney’s appointment to the Cabinet. Biddle said, “This worthy President thinks that because he has scalped Indians and imprisoned Judges he is to have his way with the bank. He is mistaken.”
Biddle began to restrict credit and call in loans from state banks. Business leaders pleaded with Jackson to approve the bank and end the crisis. However, Jackson placed the blame for the panic on the doorsteps of Biddle’s bank and advised all callers to “Go to Nicholas Biddle.” Biddle’s reply was: “All the other banks and all the other merchants may break, but the Bank of the United States shall never break.”
In this struggle for power, Biddle was doomed to defeat. Jackson rallied public opinion behind him, and Biddle was pressured into restoring credit and loans. All he had proved was that Jackson was correct in his contention that a private monopolistic bank, independent of government regulation, should not be entrusted with public finances. Jackson won his greatest political victory, and the Second Bank of the United States passed out of existence when its charter expired in 1836.