inflation

Why End the Federal Reserve?

Most people today do not understand where inflation comes from, how our money is printed, and who is in charge of printing our money. To make it worse the average American does not even know what the Constitution says about our government and money.

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To keep it simple, the United States Constitution says in article 1, section 8. “[Congress shall have the power..]To coin Money, regulate the Value thereof, and of foreign coin, and fix the Standard of Weights and Measures”. The Constitution does not give Congress the authority to print paper money themselves, let alone delegate control over monetary policy to a central bank.

Before the mid-twentieth century our currency was backed by an asset, more importantly it was backed by gold. For the longest time in our country the dollar was worth 1/20 of an ounce of gold. After the Federal Reserve was created in 1913 our government went on a mission to not only eliminate the gold standard but confiscate the gold from its citizens as well.

So you may ask why, why would the government do that? Why would they disregard the Constitution? Well it wouldn’t be the first time and probably not the last. The simple answer to those questions is this: When an asset such as gold backs money, government deficit spending is severely limited. With the creation of the Federal Reserve we have given the government the ability to have money printed out of thin air.

Like G. Edward Griffin said, “if you give someone the power to create money out of thin air, don’t be surprised when they create money out of thin air”. The world we live in today goes like this- The Federal Reserve prints our money and lends it to our government at interest. This loan is guaranteed by the taxpayers.

It is not a coincidence that the income tax was created in 1913, the same year the Federal Reserve act of 1913 was passed by congress. The Federal Reserve is a private bank held by private stockholders. We cannot audit the Federal Reserve. It is not owned or run by the taxpayers or the federal government.

I say “let’s end the Federal Reserve”. Congress does have the power to do that and we should demand that they do it.

Below is some quotes and text. There is a Federal Reserve Abolition Act that was brought to committee. It is called The Federal Reserve Board Abolition Act (H.R. 2755). It is still sitting in committee in congress. For many bills, this is the closest they will ever come to actually being debated on the floor of congress. We the people need to write our congressmen and demand they co-sponsor this and take it out of committee

Quotes:

G. Edward Griffin quotes:

“Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime”.

Rep. Ron Paul to Congress:

“Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.”

“In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.”

On November 22, 2008 thousands of people rallied to protest the Federal Reserve. The Rallies toke place from Washington D.C. to San Francisco.

If you are interested in joining the protest and help bring awareness to the biggest scam in American history visit EndTheFed.us

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Is it Possible to Predict Mortgage Rates?

Mortgage rates can fluctuate rapidly. With these unexpected changes, it can be hard to know exactly when to lock in a rate. Could you have saved money if you waited one more month? Or did you stall too long and miss a window of opportunity? Wouldn’t it be easier if there were a concrete way to predict mortgage rates?

No one can predict mortgage rates precisely, but if you pay attention to a variety of factors, you may begin to notice a trend. Unfortunately, even keeping an eye on the trends in mortgage rates will not tell you exactly when it is the best time to lock in a rate.

While it may be impossible to guarantee that you are locking in the lowest available rate, you can get a good interest rate by paying attention to the market and knowing what to look for.

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In the past, it was much simpler to predict mortgage rates. They would typically follow the interest rates of corporate bonds, but lag behind by anywhere from six months to a year. And while this would not make it possible to determine the exact mortgage rate, it would provide some insight into whether mortgage rates were trending up or down.

This method was very effective when a bank or credit union made a loan and held that loan for the duration of the term. Today, that is not how lending works.

A mortgage is originated at a local bank, but it is then bundled and sold. Because mortgages are now considered investment vehicles, it is important that the interest rates be competitive enough to attract attention from potential investors. The mortgages are pooled into an investment group called mortgage backed securities.

These securities have the same type of appeal as bonds, and the interest rate is typically comparable to that of a ten-year treasury bond. While the interest paid on a mortgage-backed security is higher than that of a ten-year Treasury, they will typically follow the path of the Treasury bond. For example, if interest rates for Treasury bonds drop, expect mortgage rates to drop as well.

Another consideration for predicting mortgage rates is the current rate of inflation. When inflation gets higher, mortgage rates go up too. And conversely, low inflation rates usually mean lower interest rates. There are, however, exceptions to this rule. If the federal government is working to stimulate the economy, mortgage rates may remain artificially low, even as inflation rates increase.

Finally, look at what large, national lenders are doing. Although there is no reason to expect all lenders to follow along with what these large lenders do, they often do. The business section of your local newspaper will probably tell you everything you need to know about what lenders are doing across the nations. Depending on where you live and the economic climate, you may see similar results within days or weeks. While the mortgage rates may not be the same, the trend will be.

While following these basic rules will give you an edge over less informed consumers, there are other factors that will affect your personal mortgage rate. Lenders look at individual borrowers when determining what rate they offer to a customer. A person seeking a mortgage that has exemplary credit, a hefty amount of money to pay for a down payment and some extra cash to pay on points will have a lower mortgage rate than someone who has some blemishes on their credit, little money for their down payment and not enough extra money to pay any points.

It is also important to understand the difference between a fixed rate mortgage and an adjustable rate mortgage. Fixed rate mortgages are typically higher than adjustable rate mortgages. The adjustable rate mortgage may seem like a better deal, but often the adjustable rate mortgage resets at a higher rate than the fixed rate mortgage.

It is important not to waste too much time worrying about mortgage rates. While we all want to save as much money as possible when buying a home, at some point you have to make the commitment to invest the money and close on the loan. While it may seem like a mortgage is a lifetime commitment, in many cases it is possible to refinance a mortgage.

If mortgage rates drop, speak to your lender. Some lenders will expect you to go through the entire lending process again when refinancing, while others will allow you to refinance without a new appraisal, deferring many of the closing costs. If your lender seems unwilling to work with you on this, shop around. You may find a better deal, or you may find that your current lender is more willing to work with you in an effort to keep your loan in house.

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