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Concluding Questions for Chairman Bernanke and Associates!

July 19, 2012

Let’s allow some transparency (within the halls of Central Banking) for the American people to evaluate!

Our history as a Nation seems to demonstrate that our money needs to be a physical ‘thing’ to qualify as ‘legal tender’. Our Government has issued paper notes as ‘legal tender’. Silver and gold coins have been created as ‘legal tender’. Now Chairman Bernanke and the FOMC has been creating our money units (the dollar) via their Master Computer at the New York Federal Reserve Bank. Money units are now being created out of ‘thin air’ or more precisely via the Consciousness of Chairman Bernanke and his Committee. This means that our money units are not physical ‘things’…but ‘units of conscousness’. How can these units be viewed as ‘legal tender’? Would a court of law allow the ‘inner’ consciousness of Chairman Bernanke’s thinking as evidence of ‘legal tender’ money units? I don’t think so! Let’s ask Chairman Bernanke enlighten us on the actual operations within the Fed.

 
Questions #1:  Chairman Bernanke, can you enlighten the American people on the concept of QE?  This policy of yours has created lots of discussion among the American people. Just what is QE or ‘quantitative easing’ and how do you create these billions and trillions of money units? For example: you created some 1.5 trillion ($1,500,000,000,000) which was called QE1 (to purchase mostly mortgage assets), then you later created another $600 billion ($600,000,000,000) which you called QE2 (to purchase mostly Treasury Securities).
 
Can you describe how these units were created? Did you actually ‘print’ up paper notes representing this quantitative amount or did these ‘numbers’ come from some non-material source (say, your personal consciousness)? Did you create these symbols (numbers) by ‘typing’ into your Master Computer (at the NY Federal Reserve Bank) these numbers (to increase your System Open Market Account…called SOMA)? What is the operational procedure that creates these ‘dollars’ and then allows you to purchase assets with these created ‘numbers’? Please explain for the American people.
 

 
Question #2:  You responded to a question from Congressman Ron Paul that you would like to increase the transparency of the Fed…but with one exception. You do not want to allow any realtime transparency of your FOMC meetings and the deliberations of this select group. Your response to Ron was that this type of transparency might cause members of Congress to question your decisions and actions (and thus eliminate your independence). Yet how can ‘trust’ be re-established in your private operations with no realtime transparency (given what you have been doing via QE and other special operations)? Who do you represent that desires this secrecy (given that your actions and decisions affect every American and most others on this planet)? Does creating our American money units (dollars) in the trillions require this secrecy…going forward? Please explain why we need your secret operations and meetings in Washington D.C.  and within the New York Federal Reserve Bank kept hidden from realtime news)?
 

 
Question #3:   Congressman Ron Paul and many others claim that you are creating our ‘dollar’…OUT OF THIN AIR. Can you explain what this means and what is your definition of ‘thin air’? Does creating our ‘dollar’…out of ‘thin air’…make our ‘dollar’ a non-thing (nothing) unit…and illegal when evaluated as a unit of ‘legal tender’? And if our ‘dollar’ is not official ‘legal tender’ when created as a ‘no thing’ unit (out of thin air), does this not mean that you are really creating ‘counterfeit dollars’ via your QE operations? If gold is historical American money (a physical thing) then what is ‘thin air’? Please explain your reasoning!
 

Question #4:  The ‘name’ for your private institution and legal entity is: The Federal Reserve System (does this ‘name’ need change going forward?). History shows that this legal entity emerged after the Federal Reserve Act was passed by our Congress in 1913. Since this Act was passed, many patriots have reviewed this legislation and concluded that this Act may not be Constitutional. Are you aware of this?
 
Are you aware that our ‘dollar’ was originally a ‘name’ which was defined in terms of silver and gold? The ‘name’ dollar was defined as 371.25 grains of silver and/or 24.75 grains of gold via the Coinage Act of 1792. This definition gave our money unit some substance and psychological meaning. Also, when paper certificates or notes were created for most of our history these paper notes were viewed as equal to gold or silver since the holder had the option to convert their paper into a real physical metal.
 
Today, you are creating our ‘dollar’ as a digit within our computer screen (a no thing unit). Do digits created via your computer qualify as ‘legal tender’ units (or are they ‘counterfeit units)? Do you think that Capitalism can survive with ‘imaginary’ (virtual/digital) money units…created ‘out of thin air’ (mostly your thinking)? How can ‘prices’ and ‘values’ be stable and predictable with your subjective/imaginary money units? Please explain!
 

 
 

 

 
 
 The above are just a few additional questions which we need to discuss and consider. You have my permission to forward this missive to Chairman Bernanke and his Associates for their discussion. It appears, to me, that our Central Bank has evolved into an unconstitutional operation which is anathema to the philosophy and values of America. I don’t think any of our Founding Fathers would support the QE and similar policies of our current Fed System and its Chairman.
 
Creating our ‘dollars’ within ‘virtual reality’ (out of thin air) with no backing or substance to the units being created does not seem like an operation that Thomas Jefferson, Benjamin Franklin, Alexander Hamilton, or others who understood money would support. What appears to have evolved over the past 40 years is a system where select elites (mostly Ben Bernanke and his Associates today) can manipulate and ‘twist’ our economy in all kinds of subjective directions with no real logic or oversight by our elected representatives.
 
Where is all this subjectivity leading? Will our Congress acquire some ‘backbone’ and start seeking some understanding? The only person who has promoted an audit and review of our Central Bank and their operations is Congressman, Ron Paul of Texas. We now need to assist Ron so that more transparency and integrity is developed. That is my missive for today! Enjoy! Keep up the good work, Ron!
 
2 Comments leave one →
  1. poolman permalink
    July 19, 2012 6:30 pm

    I am so glad the FED is almost mainstream news. Still, it’s hard to get folks motivated to act. I’m grateful for Dr. Paul’s persistence.

    Are you familiar with ‘Mountain Hours’ currency circulating in Breckenridge CO? Seems like an interesting alternative for a local community exchange. I’m certain there will be some that will still figure how to cheat any system.

    Like

    • July 20, 2012 5:08 pm

      No. But I am aware that alternative currencies are emerging all over the country. This is good for the transition phase that must occur in the next few years. Eventually, we need to think seriously about eliminating all ‘money’ from the face of planet earth. D

      Like

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