A Historic Day For America’s Economic Collapse
June 5, 2012 by Sam Rolley
Today is one of great historical importance for anyone who is interested in the ongoing economic collapse of the United States.
On June 5, 1933, the United States Congress and President Franklin Delano Roosevelt unConstitutionally abrogated the use of gold for the payment of public and private debts while simultaneously bailing out the Federal Reserve and forever enslaving the American people to its inflationary economic policy.
The Federal Reserve Act of 1913 set up the Federal Reserve System to supervise the economy that had become highly elastic, and thereby easily manipulated, in the years following the United States’ industrial revolution. Next came “The Roaring 20s” a period marked by easy credit and economic expansion fueled by the Fed’s ability to print money at will. By 1933 the Keynesian-fueled boom had already caused the stock market crash of 1929 and Americans’ faith in their economy was lost.
Roosevelt’s answer to the economic problem brought on by the Keynesian carelessness of the era’s economic policymakers was to put ultimate control into the hands of those who had created the problem in the first place: The Federal Reserve. Fearing a gold-run and knowing that neither the U.S. Treasury nor the Federal Reserve had the gold to back the notes that had been issued, Roosevelt signed the Gold Standard Act on June 5, 1933. For the first time the Fed was in control of how much fiat money it was able to produce without short-term consequence. This also gave Roosevelt the ability to kick off his New Deal programs which would require billions in deficit spending by the Federal government.
Today, the implications of Roosevelt’s actions are clear. Last year an Audit of the Fed revealed that it secretly handed out more than $16 trillion to U.S. banks and corporations without the knowledge of the American people. And the Federal Government spends in ways that many people consider to be reckless on “stimulus” and green energy initiatives, continually weakening the dollar’s power.
But, economists such as The New York Times’ constant Keynesian Paul Krugman say it is no big deal. Defending government spending on the failed solar firm Solyndra, he said, “[W]e’re talking as if a billion dollars was a lot of money. In $15 trillion economy, it’s not. Solyndra was a mistake as part of a long program, which has been by and large, it had a good track record—of course you’re going to find a mistake.”