Ron Paul mocks Federal Reserve with laughable 1.5 trillion debt dismissal bill

In a move that could just as easily have come from the comic section of the Sunday paper as from a real, sitting congressman, Ron Paul proposed a bill today whereby the Federal Reserve should just cancel 1.5 trillion dollars worth of treasuries that it has been buying up over the past couple years.  After all, quipped Congressman Paul, if the Fed is indeed a government agency as it claims to be then we "owe the debt to ourselves".  Riiiiightttt???  If that is the case then we can just cancel it out and move on, Yeah?

If you don't see the humor in this then I'm afraid you still don't quite get it.  Ron Paul isn't serious here; he's mocking Bernanke using Bernanke's own logic.  At the heart of this poke into Bernanke's eye is the fact that the Federal Reserve is actually a private bank, not an official part of the government.  Shocked?  Don't be.  If you only knew half the crap that was going down right now you would hang your head and cry.  But to the point, the Federal Reserve is not a government agency.  It is a private bank which has special government backing.  It is the basis of crony capitalism in the US where banks and government wash each other's backs at the expense of the people.

Don't believe me?  Check out the Federal Reserve web site.  I did exactly that some time ago.  The Feds have moved links since then so the ones I created a few years back to point things out to family and friends are now broken but here is a site that pretty well summarizes what I found when I was scouring the Federal Reserve web site 3+ years ago.  The fed is not answerable to anyone which is why Bernanke laughs at Ron Paul when Ron Paul demands that audits be done.  The fed ownership is controlled by shares held by the 12 member banks which they cannot sell or use as collateral against any business deal.  Illuminated con men set the whole thing up from the start so it should not really be that shocking that the whole thing is a chocolate coated turd.

So when Ron Paul suggests that the fed just cancel 1.5 trillion in US debt they hold (i.e. treasuries), he is effectively challenging them to explain why they will never do it.  Of course Ron Paul knows that no private entity is going to willingly give up that kind of cash to the government just to provide credible proof regarding its long standing cover story that it is indeed a government agency of sorts.  When they fail to give up the cash, expect Ron Paul to begin to explain to the public why they won't do so.  The more the fed pushes back, the more people will know that Ron Paul has been right about everything for decades. 

The logic will be inescapable.  At the end of the day, the Federal Reserve will eventually topple once people figure out that the funny money it has been printing isn't worth the paper and the ink used to print it.  Unfortunately, lots of economically ignorant people are going to get creamed as a result and I don't just mean poor people who haven't gone to college.  From what I have seen, college graduates with good jobs will be the biggest losers because they have the most to lose and their college exposure to Keynesian (pronounced "canes-e-an", not "can-e-sian", economics majors.  The man's name was Keynes ("canes"), not "Ka-knees") economics has left them even more ignorant of the truth than someone who has never taken a college class in his life.