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: