The Federal Reserve: Massive Government’s Best Friend

By Michael Clayton

We are slowly learning that this shutdown is anything but a catastrophe, but many Americans are still asking themselves, “How did we get in this position?” They are learning this week that the shutdown of a part of government functions does not mean the end of the world. However, many citizens are still wondering what made Congress think they can continue to expand government spending in all areas and pile up ever-increasing amounts of national debt. The simple answer to that question is the Federal Reserve. Without a central bank such as the Federal Reserve, out-of-control spending in Washington would not be possible.

Without the FED, the Federal Government would not be able to finance endless, “preventative” wars overseas. Establishment politicians on both sides of the aisle would be unable to come up with the funds necessary to enact such needless foreign intervention without the massive influx of money that is provided by the FED. Although we may never know how much money the FED supplies to such conflicts because of its secretive policies, we can clearly see that over the last century, since the FED’s inception, the U.S. has been waging constant wars all over the globe. The ability of the FED to print an endless supply of money has enabled the federal government to make the domestic population feel unaffected… until now. As the well-known Austrian economist Ludwig von Mises once wrote:

“one can say without exaggeration that inflation is an indispensable means of militarism. Without it, the repercussions of war on welfare become obvious much more quickly and penetratingly; war weariness would set in much earlier.” (Mises, Nation, State, and Economy, pg. 163) (Taken from End the Fed, pg. 64)

- Along those same lines, Campaign for Liberty Chairman Dr. Ron Paul has said:

“When government had to fund their own wars without a paper money machine to rely upon, they economized on resources. They found diplomatic solutions to prevent war, and after they started a war they ended it as soon as possible… Now with central banks, governments could just print what they needed, and therefore they were more willing to pull the trigger and pick fights.” (End the Fed, pg. 63)

Thanks to the FED, politicians were given the ability to create an expansive welfare state. Just as the FED enables politicians to combat needless and endless wars overseas, the system that provides for an elastic money supply is also convenient when considering expansive government welfare programs. Many D.C. politicians have fallen into the belief that they were elected not to listen to their constituents, but to actually think and act as if they know what’s best for them. It is clear to most of us that welfare programs do nothing but take away our freedoms, liberties, and the ability to be self-responsible, whilst at the same time encouraging reliance on the federal government. The FED has given these politicians the ability to enact such programs that would have otherwise seemed unaffordable. Medicaid, Social Security, food stamps, and subsidized housing are all programs that have been enacted since the FED’s inception in 1913. Dr. Ron Paul has also provided valuable insight on this subject:

“What the Fed and paper money have done for Congress is lead legislators to believe that there are no limits on what they can spend, on what they can propose, and what they can accomplish. They really do behave like college students on spring break who are using their parents’ credit cards with no limit.” (End the Fed, pg. 115)

So while Congress and the Obama administration debate whether to delay or defund Obamacare and whether to maintain the minuscule reductions in spending contained in the sequester (reductions which are scheduled to disappear at the end of this fiscal year), nobody is seriously debating cutting spending. Perhaps we should be viewing the federal government shutdown in a new light: as a way to enlighten the masses about the overbearing government spending that takes place in our nation’s capital. Politicians on both sides of the aisle will continue to spend us into oblivion until we educate ourselves on the issues and demand a real debate on the role of government and the Federal Reserve.

If you haven’t already, I urge you to join Campaign for Liberty’s fight to Audit the FED by calling your Congressmen and asking them to support H.R.24 and S. 209 and by signing this petition.