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URL:  http://boards.fool.com/quotisnt-the-creation-of-the-quotfederal-20700376.aspx

Subject:  Re: RON PAUL: The Federal Reserve Debt Engine Date:  4/28/2004  9:23 PM
Author:  Lokicious Number:  10048 of 35357

"Isn't the creation of the "Federal Reserve System" by New York Banking insiders the ultimate example of this?"

No question a lot of bankers making a lot of money off differential between the rate they pay and the rate they ask. There's also a lot of money to be made with tax shelters that wouldn't be made if the rich didn't have to pay taxes.

I don't have the expertise to understand the functioning of the Federal Reserve as one of the mechanisms that have developed over the last 100 years or so to replace the "invisible hand" as the mechanisms for bringing some law and order to the "market forces" that proved no more self-regulatory than a combustion engine made by igniting gas in a metal can. But, at least since the Great Depression, when many of the regulatory means were put in place, Capitalism has done a lot better job of bringing wealth to nations, not just a few wealthy and their heirs, than it did unregulated, and there have been a lot fewer and a lot less devastating crises—the Savings and Loan frauds being a good example. The bail-out cost tax payers a pretty penny, but the end result was better than if all the folks with money in those S&Ls lost everything.

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