Dear Friends,
It seems to me once a thing has outlived its usefulness, or has proven itself to be counterproductive, it’s time to retire it. That logic is no where better applied than to the Administrative State and Federal Reserve. If you bought a car to get to work on time, but that car infallibly broke down, making you late for work every day… a wise person would replace that car. The self interested mechanic, however, would counsel you to keep it since you’ve put so much money in it already. If you agree that such a car should be replaced, then you probably also agree that the Federal reserve and Administrative State should be retired, if they are indeed counterproductive. For one to argue otherwise would be hypocritical. The question now is, has the bureaucracy and or Fed, succeeded or failed?
The Federal Reserve was instituted under Woodrow Wilson. Congress delegated powers the Constitution says are un-delegatable, to an organization controlled by and run for a cartel… banks. The idea was that it would be unaccountable to the public and so that independence would allow it to make the hard decisions that it would need to, to fulfill its mandate. That mandate was to protect the US dollar, and keep unemployment low. Since its founding the Federal Reserve has obliterated the value of the Dollar. The only thing holding it up is its status as the world’s reserve currency. A dollar today buys what a few cents would when the Fed was established. By the measure of protecting the Dollar then, the Fed has failed miserably. Then there’s the metric of low unemployment.
Since the Fed has failed in protecting the Dollar… maybe it’s protected jobs? Profligate money printing has indeed protected jobs… in the bureaucracy by abetting the growth of the Administrative State. The corporate executive suite has also been protected from their own mistakes by the Federal Reserve. Banks have been the greatest recipient of the largess. So much so, they have changed their business model from taking in savings and loaning that money out at interest. Now they eschew savings and simply borrowing the money they loan out, from the Fed’s overnight window. Meanwhile, white-collar and blue-collar jobs have flooded overseas due to regulations, taxes, and disincentives from the Administrative State. So they’ve failed on the job front too.
The Administrative State, the ideal government according to the book Philip Dru: Administrator, Woodrow Wilson’s favorite tale, has failed at everything it’s put its hand to. When it was started US education was among the top on the planet. Since the education department was instituted US education has dropped to around the fiftieth percentile. That is failure by any standard. The Department of Energy has failed to lower energy costs, the Department of Commerce makes commerce more expensive, the Department of War hasn’t won a war in decades, Homeland security has made the US a far more dangerous place since 911, the CIA has systematically undermined American interests since its inception, and the FBI seems to create false flags as part of its job description.
When you bring up getting rid of failed agencies and departments people instinctively react. “Who will set this or that?” This shows how deep the programming is. Interest rates could be set by the market, education standards could be set by parents, and money could be printed by Congress. Returning to ways that worked isn’t insane. That’s a con shilled by the profiteers. The first step to fixing anything is the recognition it’s broken. The fed and Administrative State have failed us in every way possible. So it only makes sense to close them down. Central planning has failed, whether in the Soviet Union, Nazi Germany, or the US bureaucratic state. They are cut from the same cloth, the idea that central planning is better than allowing a complex system to work. So let’s retire the broken system.
Sincerely,
John Pepin
