Wednesday, December 17, 2008

The Fed, Bankers, & Thomas Jefferson

The Federal Reserve cut rates yesterday to practically zero, and committed to 'quantitative easing'. The markets applauded by rising, and the cycle of debt-and-credit goes on. Will that help us now by making us pay later? I suspect so. The previous central banker, Greenspan, created one mess, and the current one, Bernanke, is 'solving' this mess but doing the very thing that Greenspan did in 2002-2003 to fix the previous bubble that burst (internet bubble). This will get us back 'on track' - maybe - or it may end up giving us another 'lost decade' like Japan had in the 1990s. The previous post mentions the price tag on the bailouts - about $7 trillion. 2% return on 10-year treasuries is absurdly low and it makes for cheaper housing refinancing, but at the same time it inflates our currency and sows the seeds for a weak dollar and inflation down the road.

So it seems apropos to have a quote about the bankers. A tart suspicion of bankers has been an American tradition since ... Thomas Jefferson:

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. " - Thomas Jefferson in a Letter to the Secretary of the Treasury Albert Gallatin

1 comment:

Anonymous said...

When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe . Thomas Jefferson



The democracy will cease to exist when you take away from those who are willing to work and give to those who would not. Thomas Jefferson


It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.
Thomas Jefferson



I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. Thomas Jefferson


My reading of history convinces me that most bad government results from too much government. Thomas Jefferson



No free man shall ever be debarred the use of arms. Thomas Jefferson



The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government. Thomas Jefferson



The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. Thomas Jefferson



To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical. Thomas Jefferson