Economy Of The United States

"The Federal Reserve Banks, while not part of the government, are the central banking sytem for the Nation.… Holdings of Federal debt by the Federal Reserve Banks do not have the same impact on private credit markets as other debt held by the public. Their holdings of Federal debt arise from their role as the country's central bank."

"The Fed is a disaster. We should have a discussion in this country about whether we need a Fed."

"The Federal Reserve, as one writer put it, after the recent increase in the discount rate, is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up."

"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures who control it."

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."

"No observer has succeeded in pinpointing the spark that set off the roaring conflagration that swept and eventually consumed the securities markets in 1928 and 1929. Clearly, however, its sustaining oxygen was a matter not only of recondite market mechanisms and traders’ technicalities but also of simple atmospherics—specifically, the mood of speculative expectation that hung feverishly in the air and induced fantasies of effortless wealth that surpassed the dreams of avarice. Much blame has been leveled at a feckless Federal Reserve System for failing to tighten credit as the speculative fires spread, but while it is arguable that the easy-money policies of 1927 helped to kindle the blaze, the fact is that by late 1928 it had probably burned beyond controlling by orthodox financial measures. The Federal Reserve Board justifiably hesitated to raise its rediscount rate for fear of penalizing nonspeculative business borrowers. When it did impose a 6 percent rediscount rate in the late summer of 1929, call loans were commanding interest of close to 20 percent—a spread that the Fed could not have bridged without catastrophic damage to legitimate borrowers. Similarly, the board had early exhausted its already meager ability to soak up funds through open-market sales of government securities. By the end of 1928, the system’s inventory of such securities barely exceeded $200 million— a pittance compared to the nearly $8 billion in call loans then outstanding. By ordinary measures, in fact, credit was tight after 1928. Mere money was not at the root of the evil soon to befall Wall Street; men were—men, and women, whose lust for the fast buck had loosed all restraints of financial prudence or even common sense."

"So I think the reason that the newspapers are going quiet on this is the Fed broke the law. And it wants to continue breaking the law. And that's why these Wall Street banks fought so hard to get the current head of the Fed reappointed, [[Jerome Powell|[Jerome] Powell]], because they know that he's going to do what [[Timothy Geithner|[Timothy] Geithner]] did under the Obama administration. He's loyal to the New York City banks, and he's willing to sacrifice the economy to help the banks. Because those are the clients of the New York Fed, the big New York banks. And that's been the case ever since I was on Wall Street half a [century] ago. And Pam [Martens] is trying to expose how these banks are crooked, and really what the whole problem was. She points out that the Fed is supposed to make short-term loans, but these are long-term loans."

"...Pam Martens is very clear... She points out the reason that the regular newspapers don't report it is the loans violated every element of the Dodd-Frank laws that were supposed to prevent the Fed from making loans to particular banks that were not part of a liquidity crisis. In her article, she makes very clear by pointing out these three banks, Chase Manhattan, Goldman Sachs – which used to be a brokerage firm – and Citibank, that the Federal Reserve laws and the Dodd-Frank Act explicitly prevent the Fed from making loans to particular banks. It can only make loans if there's a general liquidity crisis. And we know that there wasn't at that time, because she lists the banks that borrowed money, and there were very few of them."

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and through its Board of Governors manipulates the credit of the United States."

"There has been a great reaching out by bankers in the last fifteen or twenty years--and especially since the war--and the Federal Reserve System for a time put into their hands an almost limitless supply of credit. The banker is, as I have noted, by training and because of his position, totally unsuited to the conduct of industry. If, therefore, the controllers of credit have lately acquired this very large power, is it not to be taken as a sign that there is something wrong with the financial system that gives to finance instead of to service the predominant power in industry? It was not the industrial acumen of the bankers that brought them into the management of industry. Everyone will admit that. They were pushed there, willy-nilly, by the system itself. Therefore, I personally want to discover whether we are operating under the best financial system. Now, let me say at once that my objection to bankers has nothing to do with personalities. I am not against bankers as such. We stand very much in need of thoughtful men, skilled in finance. The world cannot go on without banking facilities. We have to have money. We have to have credit. Otherwise the fruits of production could not be exchanged. We have to have capital. Without it there could be no production. But whether we have based our banking and our credit on the right foundation is quite another matter."

"Neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face value."

"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."

"The Consumer Price Index is 15 times higher than it was when the Federal Reserve was founded in 1913. In the hundred years prior to the advent of the Federal Reserve, prices in America fell by one third."

"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized […] the worst legislative crime of the ages is perpetrated by this banking bill."

"We don't know what would have happened had [[w:Benjamin_Strong|[Federal Reserve Governor Benjamin] Strong]] lived; but what we do know is that the central bank of the world's economically most important nation in 1929 was essentially leaderless and lacking in expertise. This situation led to decisions, or nondecisions, which might well not have occurred under either better leadership or a more centralized institutional structure. Associated with these decisions, we observe a massive collapse of money, prices, and output. … Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton [Friedman] and Anna [Schwartz]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

"The defeat of some eighty administration supporters in November of 1938 meant that the Congress that convened on January 3, 1939, was much more conservative than the Congress that had preceded it. On January 6, 1939, the President sent his first relief message for 1939. He requested that Congress appropriate an additional emergency sum of $875,000,000 so that it would be possible to continue the relief program for the next five months, at the level at which it was then operating. The House Appropriations Committee cut $150,000,000 from the bill and sent it to the House for consideration. A number of efforts were made to increase the appropriation above the figure asked by the President, but these received little support. On January 13, 1939, an effort was made to re- instate the sum of $875 million that had been asked by the President. It was defeated by a teller vote of; 137 to 226. Efforts to secure a roll call vote failed."

"The New Deal is plainly an attempt to achieve a working socialism and avert a social collapse in America; it is extraordinarily parallel to the successive "policies" and "Plans" of the Russian experiment. Americans shirk the word "socialism", but what else can one call it?"

"The dichotomy that existed between the domestic elite view of the United States as being under pressure from within and without, and the international view of America as superabundant and expanding, was replicated from the 1930s onwards in the fissures that the Great Depression created in American politics. Roosevelt’s New Deal and the state-led reforms that followed were greeted by some as a necessary concession to collectivism, while others feared the administration’s initiatives and saw them as confirming the political, cultural, and moral decline that had been forced on America by ‘‘foreign’’ influences. Both directions – ‘‘liberal’’ and ‘‘conservative’’ – were anti-Communist, but the latter was considerably more skeptical to direct military intervention in the 1930s and through most of the Cold War. Both saw international affairs as an extension of their interpretation of America’s domestic role, with the conservatives accusing their opponents of being ‘‘soft on Communism’’ and the liberals claiming that the conservatives were unwilling to pay the price of ‘‘making the world safe for democracy.’’"

"I'm a professor all right. But I was always violently anti-New Deal."

"Roosevelt's New Deal was not the best alternative, but it certainly was a better alternative than had been offered to the problems of our times, and it was offered with an elan, a spirit that made things go and which tended to lift up people's hearts. In retrospect, I wouldn't change many of the criticisms I then made. Yet the net result was certainly the salvation of America, and it produced peacefully, after some fashion not calculated by Roosevelt, the Welfare State and almost a revolution."

"The similarities of the economics of the New Deal to the economics of Mussolini's corporative state or Hitler's totalitarian state are both close and obvious."

"What we were doing in this country were some of the things that were being done in Russia and even some of the things that were being done under Hitler in Germany. But we were doing them in an orderly way."

"A few timid people, who fear progress, will try to give you new and strange names for what we are doing. Sometimes they will call it "Fascism", sometimes "Communism", sometimes "Regimentation", sometimes "Socialism". But, in so doing, they are trying to make very complex and theoretical something that is really very simple and very practical."

"Plausible self-seekers and theoretical die-hards will tell you of the loss of individual liberty. Answer this question out of the facts of your own life. Have you lost any of your rights or liberty or constitutional freedom of action and choice? Turn to the Bill of Rights of the Constitution, which I have solemnly sworn to maintain and under which your freedom rests secure. I have no question in my mind what your answer will be. The record is written in the experiences of your own personal lives. Read each provision of that Bill of Rights and ask yourself whether you personally have suffered the impairment of a single jot of these great assurances. I have no question in my mind what your answer will be. The record is written in the experiences of your own personal lives."

"I pledge you, I pledge myself, to a new deal for the American people."

"Such terms as communism, socialism, Fabianism, the welfare state, Nazism, fascism, state interventionism, egalitarianism, the planned economy, the New Deal, the Fair Deal, the New Republicanism, the New Frontier are simply different labels for much the same thing."

"The real end of the New Deal period took place in the Congressional election of November, 1938, when some eighty odd liberal and middle-of- the-road members of the House were replaced by members much more conservative than they were. But, actually, the New Deal was defeated by the coalition of northern Republicans and southern Democrats that took place in Congress in 1937. The strength of this coalition was strikingly demonstrated in the Revenue Act of 1938, in which the principle of taxation based upon the ability to pay, as enacted in the Revenue Acts of 1935 and 1936, were largely scuttled without the matter even being permitted to come to a vote on the floor of either house of Congress."

"Fascism was really the basis for the New Deal. It was Mussolini's success in Italy, with his government-directed economy, that led the early New Dealers to say "But Mussolini keeps the trains running on time.""

"You want to know what fascism is like? It is like your New Deal!"

"We have tried spending money. We are spending more than we have ever spent before and it does not work…I say after eight years of this Administration we have just as much unemployment as when we started, and an enormous debt to boot!"

"The effect of every sort of New Deal is to increase and prosper the criminal class. It teaches precisely what all professional criminals believe, to wit, that it is neither virtuous nor necessary to suffer and to do without."

"The New Deal began, like the Salvation Army, by promising to save humanity. It ended, again like the Salvation Army, by running flop-houses and disturbing the peace."

"Just as he was sensitive to the broad geographic appeal of the Corps, so too was Franklin Roosevelt aware that the CCC could bring together often competing special interests under the banner of New Deal liberalism. The president consciously used the CCC's popularity among both the working and upper classes, on the local and the national levels, and on the political Left and political Right, to knit together an ideologically diverse political constituency that supported the New Deal."

"At the end of February we were a congeries of disorderly panic-stricken mobs and factions. In the hundred days from March to June we became again an organized nation confident of our power to provide for our own security and to control our own destiny."

"A critical aspect of the operation of the New Deal system was the long history of incremental change and resistance to more fundamental modification. This incremental adjustment orientation was apparent in government policy, managerial practice, and union bargaining objectives."

"Woodrow Wilson's New Freedom promised our nation a new political and economic framework. Franklin Roosevelt's New Deal promised security and succor to those in need. But the New Frontier of which I speak is not a set of promises--it is a set of challenges. It sums up not what I intend to offer the American people, but what I intend to ask of them. It appeals to their pride, not to their pocketbook--it holds out the promise of more sacrifice instead of more security."

"This is what the "New Deal" means to me, an era of acute social consciousness and realization of mutual responsibility, a time of reciprocal helpfulness, of greater understanding and willingness to work together for the good of all."

"Even today-in blithe disregard to his actual philosophy- Smith is generally regarded as a conservative economist, whereas in fact, he is more avowedly hostile to the motives of businessman then most New Deal economists."

"The Green New Deal is modeled after FDRʼs New Deal, which is always celebrated as progressive action that lifted the US out of economic depression through infrastructure development projects like dams and extractive industries that put people to work. Whatʼs far less acknowledged, however, is how much environmental and cultural death and destruction all that development wreaked on Indian country. We see a similar pattern occurring globally in the realm of “sustainable” development, which has given rise to a modern global land rush that impacts Indigenous communities the most. Ultimately, unchecked capitalism is the problem and we need to heed the research that connects cultural diversity with biodiversity if we are to avoid the worst impacts of climate change."

"The resemblances between Adolf Hitler's speech to the newly elected Reichstag on March 21, 1933, and Roosevelt's inaugural address are indeed a great deal more striking than the differences. Yet it almost goes without saying that the United States and Germany took wholly different political directions from 1933 until 1945, the year when, both still in office, Roosevelt and Hitler died. Despite Roosevelt's threat to override Congress if it stood in his way, and despite his three subsequent re-elections, there were only two minor changes to the US Constitution during his presidency: the time between elections and changes of administration was reduced (Amendment 20) and the prohibition of alcohol was repealed (Amendment 21). The most important political consequence of the New Deal was significantly to strengthen the federal government relative to the individual states; democracy as such was not weakened. Indeed, Congress rejected Roosevelt's Judiciary Reorganization Bill. By contrast, the Weimar Constitution had already begun to decompose two or three years before the 1933 general election, with the increasing reliance of Hitler's predecessors on emergency presidential decrees. By the end of 1934 it had been reduced to a more or less empty shell. While Roosevelt was always in some measure constrained by the legislature, the courts, the federal states and the electorate, Hitler's will became absolute, untrammelled even by the need for consistency or written expression."

"Sometimes I had morning meetings with President Roosevelt to discuss the legislative program. But no matter how often he referred to the agglomeration of recovery legislation as the “New Deal,” I refused to use the term. As far as I was concerned, it was just a part of the Democratic tradition. It was new only in contrast to the ice-age policies of Harding, Coolidge and Hoover. I didn’t care to abandon the Democratic Party label for a catch phrase. To me, most of what Roosevelt advocated was consistent with our party’s past. One of my fears was that by referring to this progressive legislation as the “New Deal,” we might be building a separate group which would eventually branch off into a new political party."

"The New Deal also came to the rescue of mortgaged farmers and city-dwellers by taking steps to prevent foreclosures, then dreadfully common; the federal government, in essence, underwrote both the lenders and the borrowers."

"The only light in the darkness was the administration of Mr. Roosevelt and the New Deal in the United States."