Socialism and the Federal Reserve – Greater prosperity?

Historical Examples of Socialism

  • Most politicians don’t seem to understand that the Plymouth Colony experiment in America was actually a failure.
  • Influx of migrants from South America and Central America to the United States is the result of bad government economic policies (e.g., Venezuela’s socialistic policies).
  • The Soviet Union was perhaps one of the most oppressively burdensome socialistic empires to have fallen within the last two hundred years.

Why is the downfall of the Soviet empire specifically important and how did its demise come about?

  • Nuclear weapons weren’t needed to collapse the Soviet Union.
  • Like most empires, the Soviet Union became bloated due to excessive territorial expansion and unsustainable government spending, causing it to disintegrate internally. Similar to the end of the Roman Empire.
  • Of course, external forces played a small part, but failure undoubtedly started and ended from within.

Comparatively speaking, what is happening to the United States internally?

  • Evidence suggests that the United States is on the path toward self-destruction.

What are some causes of this self-destruction?

  • Keynesian economics.
  • Despite one major financial crises after another, governments and bureaucrats continue to adhere to the idea of Keynesianism economics.
  • This flawed economic theory is the basis of the United States’ Federal Reserve system.
  • The Federal Reserve facilitates excessive government expenditures by printing and loaning inconvertible paper money to central banks, who then loan it to the country’s government and commercial banking system.
  • The Federal Reserve charges interest on these loans, and then the central banks charge their own set of interests when loaning it out to commercial banks, who then pass that accumulated interest onto consumers, mostly U.S. citizens.
  • Fiat money has no inherent value except by government decree. The continual printing of paper money exponentially devalues the purchasing power of U.S. currency.
  • The ability to print money whenever needed is what leads to excessive government involvement in not only domestic affairs but also foreign affairs.
  • In other words, a larger wallet means more unnecessary government intervention for U.S. and non-U.S. citizens.
  • Based on the current state of domestic and international affairs, central banks have been doing a poor job of running the world. The government’s faith in the Federal Reserve is evidently misguided.

What’s a succinct reason for why the Federal Reserve System is flawed and will ultimately lead to the United States’ self-destruction?

  • Simply put, the Federal Reserve promotes inflation in order to earn revenue from government debt while influencing U.S. citizens to believe that the Federal Reserve can guarantee economic safety and security when, in reality, it cannot (as evident from the 2000 Nasdaq bubble and the 2008 financial crisis).

What can be done to stop the Federal Reserve?

  • The Federal Reserve System has on many occasions refused to be audited by Congress.
  • Congressional members have also refused to pass legislation demanding that the Federal Reserve be audited.
  • This lack of accountability casts doubt on the Federal Reserve’s ability to provide the kind of economic safety and security it promises.
  • The only option is for Americans to persuade their congressional representatives to audit and abolish the Federal Reserve System.
  • The nation’s debt and spending problems can’t be corrected by just expanding government regulations and government printing of more debt.

The United States, the Soviet Union, and the Rest of the World – Socialism

  • Similar to the Soviet Union, war will not be the cause of the United States’ downfall.
  • The United States’ economic policy is responsible for creating the economic problems we are experiencing today (both at home and around the world).
  • The disintegration of the middle class is the result of individuals who dole too much on government welfare.
  • People are essentially rewarded for not working, and then there are too many rewards for people who enter the United States illegally.
  • The government’s “limitless supply of money” fuels its interventionist foreign policy of meddling in the affairs of other nations, which has led to the forced migration and displacement of millions of individuals globally. The European Migrant Crisis is a notable example.

Possible Solutions

  • Rather than intervene in the affairs of nations abroad through wasteful spending, unabashed coercion, unconstitutional military force, and strategic bombings that displace countless people, Americans can consider the idea of less government as being the most sound option in strengthening their economy and in fortifying the United States’ ability to defend its own borders (instead of having its military forces spread too thin around the globe).
  • In implementing a more reliable economic policy and form of governance, U.S. citizens will naturally reap the benefits of greater liberty and increased prosperity.