The Washington Post Runs An Article Entitled “Five Myths About The Federal Reserve” Authored By An Economist Linked To The Rothschilds

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There have been so many attacks on the Federal Reserve recently that the mainstream media now feels almost forced to try to defend their actions.  The most blatant example of this recently was an article in the Washington Post entitled “Five Myths About The Federal Reserve”.  The article was authored by Greg Ip, the U.S. economics editor of The Economist.  According to Wikipedia, the Rothschild banking family is a partial owner of the firm that operates The Economist.  You would have thought that they would have gotten someone a whole lot less obvious to produce this propaganda piece, but apparently they did not think anyone would notice.  Of course an economics editor of The Economist is going to defend the Federal Reserve.  He would be fired if he didn’t.  The Economist is well known to be a mouthpiece for the international central banking establishment.  But what is really sad is how poor a job Greg Ip did in defending the Fed.  If these are the best intellectual arguments they can come up with then they are in huge trouble.


Below are the “five myths” that Greg Ip attempted to debunk in his article.  I will tackle them one by one…..

#1 The First Myth About The Federal Reserve The Washington Post Supposedly “Debunked”: By printing money, the Fed will create runaway inflation.

Are we going to have hyper-inflation tomorrow because the Federal Reserve is pumping $600 billion into the U.S. economy?


But all journeys begin with a single step.  By initiating a new round of quantitative easing, the Federal Reserve has taken several huge steps down the road that could eventually lead to out of control inflation.  Let us hope that they stop and that we never get to that point.

However, the truth is that quantitative easing will cause some inflation.  It is only a matter of how quickly that money gets out of the banks and into the hands of consumers.

In his article, Greg Ip admits that the decision was made to go ahead with more quantitative easing because “the Fed is trying to stimulate spending”, but then he also tries to argue “this money can lead to inflation only if banks lend it and consumers and businesses spend it.”

Say what????

So either the Federal Reserve fails to stimulate spending (which is supposedly the whole purpose of quantitative easing), or spending will be stimulated and we will have inflation.

Perhaps Greg Ip should review some of the statements by top Federal Reserve officials in recent months where they openly admit that they want to create more inflation in order to stimulate the economy.

The notion that “this money can lead to inflation only if banks lend it and consumers and businesses spend it” is nonsensical at best.  According to Greg Ip, we will be perfectly fine as long as nobody lends any of this money and nobody spends any of this money.  Of course that is the whole purpose behind quantitative easing, but that little fact seems to have escaped the U.S. economics editor of the Economist.

#2 The Second Myth About The Federal Reserve The Washington Post Supposedly “Debunked”: The Fed is endangering the global recovery by trying to drive down the dollar.

Greg Ip doesn’t even bother to try to debunk this myth.  He openly acknowledges that quantitative easing will drive down the value of the dollar….

But while a weaker dollar isn’t the direct goal of the Fed’s actions, it’s a predictable and welcome consequence. When the Fed eases monetary policy – either by lowering short-term rates or, nowadays, by forcing down long-term rates with bond purchases – it makes Treasury bills and bonds less appealing. Investors flock to alternatives, including foreign stocks and bonds, driving up other currencies relative to the dollar. The lower dollar complements lower interest rates in spurring economic growth.

What Ip does claim is that all of this is okay because the Federal Reserve is not trying to drive down the value of the dollar on purpose.  It is just an unintended “consequence” of trying to stimulate the economy.

Unfortunately, the rest of the world does not see things that way.  They are not stupid.  They realize that the Federal Reserve is openly devaluing the dollar and they are not happy about it.

But Barack Obama just keeps on defending Bernanke and the Federal Reserve….

“This decision was not one to have an impact on the currency, on the dollar.”

That must have been one of those moments when Barack Obama was not in front of a teleprompter.

In any event, anyone with a brain should have realized that quantitative easing was going to drive down the value of the dollar.

Claiming that the Federal Reserve’s primary goal was not to devalue the dollar and that we should trust their intentions is not going to make it all better.

#3 The Third Myth About The Federal Reserve The Washington Post Supposedly “Debunked”: The Fed is trying to finance the government’s profligacy.

In his article, Greg Ip admits that the Federal Reserve is financing U.S. government debt….

By buying Treasury debt, the Fed is in effect financing the federal deficit.

But he says that this is okay because “there’s no shortage of private and foreign investors to buy Treasury bonds.”

Oh really?

According to the Wall Street Journal, in order to repay maturing bonds and finance the massive budget deficit, the U.S. government will have to borrow 4.2 trillion dollars in 2011.

So what do you think would happen if the Federal Reserve sat back and did not buy up a single penny of that debt?

You guessed it – interest rates on U.S. government debt would soar into the stratosphere.

Of course what Greg Ip failed to mention was that just last year Federal Reserve Chairman Ben Bernanke promised Congress that the Fed would not monetize U.S. government debt.  In cased you missed it, here it is on video….

But now that is exactly what the Federal Reserve is doing.  Ben Bernanke has lost virtually all credibility at this point, and anyone that wants to maintain their own credibility should not be defending him.

#4 The Fourth Myth About The Federal Reserve The Washington Post Supposedly “Debunked”: The Fed is immune to politics.

In his article, Greg Ip insists that although the Federal Reserve is “technically independent from the rest of the government”, there are still many ways that our political system can influence it.

As examples, Ip said that the president and Congress “can privately and publicly browbeat the chairman, withhold his reappointment, appoint compliant governors or amend the Federal Reserve Act.”

Okay, so exactly when have any of those things actually happened in recent memory?

Even Ip acknowledges that the Federal Reserve has had an easy time under all of the most recent administrations…..

“Like Bill Clinton and George W. Bush before him, President Obama has respected the Fed’s independence.”

But the truth is that the unelected Federal Reserve is actually accountable to nobody.  If you don’t believe that, perhaps you should listen to former Federal Reserve Chairman Alan Greenspan make that exact claim in the following video….

Are you starting to get the picture?  According to Greenspan, nobody in the U.S. government can overrule anything that the Federal Reserve does.

As I noted in another article, the Federal Reserve is very open about the fact that it is not an agency of the federal government….

The truth is that the Federal Reserve is about as “federal” as Federal Express is.  In defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve objected by declaring that it was “not an agency” of the U.S. government and therefore it was not subject to the Freedom of Information Act.  It is kind of funny how Fed officials are always talking about how important their “independence” is, but whenever anyone starts criticizing them for being private they start stressing their ties with the government.

If only a significant number of our politicians would start standing up to the Federal Reserve – then we might have something to talk about.

#5 The Fifth Myth About The Federal Reserve The Washington Post Supposedly “Debunked”: Bernanke knows what he’s doing.

In the article, Ip seemed to want to make the point that Bernanke is only human just like the rest of us, but he spent a whole lot of space telling us how wonderful he is.  For example, Ip was apparently quite serious in his contention that we should trust Bernanke because he has such “an impressive resume” and that he knows what he’s doing….

Bernanke came to his job with an impressive resume, including years of studying the Great Depression. To that he can now add the irreplaceable experience of running the central bank through one of its most harrowing periods. If anyone should know what he’s doing, it’s him.

Bernanke knows what he is doing?

Well, has Bernanke ever run a business?


Has Bernanke ever been elected to anything?


Had Bernanke ever successfully run any major organization prior to being put in charge of the U.S. Federal Reserve?


The truth is that Bernanke has spent most of his career teaching at major universities such as Stanford and Princeton.  He has very, very little experience with the real world.

So how has he done as Fed Chairman so far?

Unfortunately, he has done very poorly.

The video below shows various interviews with Bernanke from 2005 to 2007 that demonstrate that he had absolutely no clue that the housing bubble was coming….

The truth is that there are legitimate reasons why so many people are criticizing the Federal Reserve.

We didn’t just wake up one day and decide that we didn’t like the way Ben Bernanke’s beard looks.

The Federal Reserve system is fundamentally flawed and the Fed’s mismanagement our our economy is at the core of our economic problems.

When the Washington Post publishes articles that lecture us on how we need to shut up and trust the wise men over at the Federal Reserve it just shows how out of touch they are with the American people.

We are headed for an absolute economic disaster, and the Federal Reserve is leading the way.  Anyone who claims that there are not legitimate reasons for deeply criticizing the Federal Reserve just does not get it.

  • zack

    Ip is obviously a paid shill for the Fed. He claims that the banks aren’t lending so the newly created money won’t make it into the economy. Not true! When the Fed buys government bonds, it gives the new money to the government, which spends it – thus releasing it into the economy.

    Jobs in Asia –

  • Tim

    More information can be found here

    1790 Mayer Amschel Rothschild states, “Let me issue and control a nation’s money and I care not who writes the laws.”

    1811 The charter for the Rothschild’s Bank of the United States runs out and Congress votes against its renewal. Nathan Mayer Rothschild is not amused and he states, “Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.” However the United States stands firm and the Charter is not renewed, which causes Nathan Mayer Rothschild to issue another threat, “Teach those impudent Americans a lesson. Bring them back to colonial status.”

    …2nd Bank of U.S. bill passed…

    1832 President Andrew Jackson (the 7th President of the United States from 1829 to 1837), runs the campaign for his second term in office under the slogan, “Jackson And No Bank!” This is in reference to his plan to take the control of the American money system to benefit the American people, not for the profiteering of the Rothschilds.

    1833 President Andrew Jackson starts removing the government’s deposits from the Rothschild controlled, Second Bank of the United States and instead deposits them into banks directed by democratic bankers. This causes the Rothschilds to panic and so they do what they do best, contract the money supply causing a depression. President Jackson knows what they are up to and later states, “You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.”

    1849 Gutle Schnaper, Mayer Amschel Rothschild’s wife dies. Before her death she would nonchalantly state, “If my sons did not want wars, there would be none.”

    1862 By April $449,338,902 worth of Lincoln’s debt free money has been printed and distributed. He states of this, “We gave the people of this republic the greatest blessing they ever had, their own paper money to pay their own debts.”

    That same year The Times of London publishes a story containing the following statement,
    “If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”

  • A Dodgy Bloke

    Economist linked to the Rothschilds (Horrors!!!)

  • Even as there may be some justice in the contempt held for many of the people by these arch parasites the Rothschild’s and their near kin, they are mistaken to think they are the pinnacle of mankind. Indeed they are but another aspect of the debasement of a potentially great creation, man.

  • Griz

    With newspaper articles like this. no wonder newspapers are going out of business.

  • Dumb Broke Loser

    The only point of disagreement I have with the author of this piece regards the fifth point: “Bernanke knows what he’s doing.” That is the only point the Rothschild shill got right.

    Bernanke is an evil genius. If he weren’t, he wouldn’t be Chairman of the Federal Reserve. Bernanke is a master economic warfare technocrat. He is an expert on the Great Depression, which means he knows precisely how to engineer an even worse one. He is deliberately destroying the poor and middle class of Amerika, and he’s doing a damned fine job of it.

    Ben Shalom Bernanke knows what he’s doing. He is neither a bumbling idiot nor a fumbling academic struggling with the real world as it exists outside his own head. Ignore whatever he says publicly – that’s strictly for public consumption, just like everything else your self proclaimed masters spew forth. The masses’ attention span is just about zero, and so naturally Ben’s lies change on a day to day basis (just like the president) – but nobody cares, nothing will happen to him over that. Lying is perfectly legal. So is destroying the economy by design. It’s all right there in the Fed’s unconstitutional Charter. They have the power to destroy, and they’re going to use it.

    The government wouldn’t exist without lies. The same goes for Wall Street. Civilization is built on lies. Amerikans worship lies and the liars that tell them.

  • DDearborn

    The solution to the FED is simple. All congress has to do is repeal the Federal Reserve Act. Presto NO more FED. By oblishing the FED we could also make all debts incurred by the FED payable by the FED and NOT the American people! Let the people who have been stealing from America for 100 years pay their own debt. After all if they are totally independent and not answerable to the American people why should we pay their debts? And of course we have to ensure that the same crooks running the Fed/wall street don’t end up at the Treasury department…..

    When the will of the people is clear; why does congress refuse to act? Because congress answers to the richest 1%. This of course automatically means that congress is acting against the best interests of the other 99% and the country as a whole. The American people most stand up and force Congress to obide by the will of the people.

  • farang

    “When the Washington Post publishes articles that lecture us on how we need to shut up and trust the wise men over at the Federal Reserve it just shows how out of touch they are with the American people.”

    Or, perhaps it shows that Mockingbird is still very much alive and well.

    Excellent article, very well done.

  • Kate

    The Economist is still in business? I long stopped reading the drivel that comes out of that rag. Now I see why I don’t read it, It represents the uber out of touch Rothchild family interests.

  • Ken

    So how is this writer any better at getting to the truth than Ip? Arguing about specifics of Ip’s article is just another straw man argument. How about really exposing the CBD’s (Corporate Banking Demonoids)? How about discussing in real terms how the FED (or any central bank in the world) rapes the people of the world by imposing a totalitarian debt-creation money system rather than a real asset-based monetary system similar to the one we used to have?

    Three changes are needed, 1) eliminate the FED and create a federally overseen, asset-based banking system (no fractional reserve crap), 2) replace all paper money with gold and silver and gold/silver-backed “real” money, and 3) seize all assets of any person or company connected in any way with the FED or a central bank, and imprison them for life.

    Now, article writer, if you had discussed these things, perhaps we would have considered you more suitable for the job.

  • walt

    And I for one, believe no Liars.

  • Important Facts About the Federal Reserve

    The Federal Reserve is a private institution.

    The Federal Reserve holds a monopoly on the issuance of currency in the USA

    Much of the Fed’s activity is not made public

    There is debate over the constitutionality

  • Mark

    Tim, your comments were most informative, and you seem to have a good historical perspective on the U.S.A.’s economic woes. I am aware that the Rothschild banking cartel is very influential on this country’s economic policy vis a vis the Federal Reserve. It is also noteworthy that one John F. Kennedy, wanted and did, at least some, encourage debt-free currency, as was noted on some paper currency, which unfortunately is out of circulation. Again, unfortunately, as well, Kennedy was too.

  • All the presidents who had ideas not consistent with the fed were shot except Andrew Jackson but dual attempt was made against him but failed.HE was a military man and not clueless.He was mortal and pased away .He can not be reinstated.JFK was very easy target.He was often good.

  • Habler

    Most of these ‘shrewd’ investors pay very little tax as well. The middle and lower classes pay most of it. They play with the economy like a giant monopoly board. The game is totally rigged in their favour.

  • Hal

    Let’s see If I remember some Karl Marx 101.
    1. Debase the currency.
    2. Destabilize/Destroy manufacturing base.
    3. Debauch morality of the people.
    4. Delute education.
    5. Control the media.

    There are more but just these have gotten us into a fine pickle Ollie !
    What languages should we learn for the centralized one world odor?

  • DavidinMpls

    Kennedy issued E.O. 11110 which gave the US Government power to issue its own currency. The day of the coup d’etat Johnson rescinded it – one of his first acts as President.

  • DavidinMpls

    Apparently I was mistaken. Johnson didn’t reverse it. By March of ’64 the Treasury had stopped honoring the certificates to exchange for silver.

  • :Kevin-John: Morgan.

    The word “Federal” comes from the Latin word “Foedus”, meaning:
    “Foul, hideous, revolting, vile, disgusting, repulsive, filthy or disgraceful”.

    Try placing these words in front of every title beginning with the word “Federal”, and I feel it would be closer to the Truth than Fiction.
    Add to that, the Prefix “Re” actually means NO!

    So, what do we now have?
    A Foul, hideous, filthy, revolting, vile, disgusting, repulsive, filthy or disgraceful, NON-serving Bank, trying to tell the government what to do? Aren’t there Laws against that?

  • AnnaCh.

    What about the OWNERSHIP of the Federal Reserve?! This is the core of the subject. FED is being owned by few families from Europe; why there is not even single word about it in the article? The author actually is writing about FED as if it was state owned.

  • Trevor

    Yup, blame the horrible Fed. Hell of a lot easier than blaming yourselves, or the mad, credit-gorged spending spree your entire nation went on over the past 20 years (were you yelling at the Fed then?). Or the greed that freed the banks to securitize mortgages. Or the two idiotic wars you supported. Or your chronically under-educated, over-fed populace. Or the real estate orgy that everyone swapped wives at. Or your decaying infrastructure. Or your medieval wealth disparity.

    Yup, continue on with your conspiracy theories and finger-pointing in fine populist style, but the truth is that capitalism is a moral system — It doesn’t deliver what you expect, but what you deserve.

    I agree, in a sense, that QE is merely delaying the inevitable, but the notion that Bernake is more or less competent than Greenspan is absurd. They both have little power to make any kind of change. And Congress did, in fact, browbeat the Fed (Greenspan), only it did so when it attempted to raise rates in order to cool off your falsely superheated economy. It seems nobody wanted the party to stop. Did you?

    Stop pointing your fat fingers and hoping for the apocalypse (thinking you’ll be the ones who live) and start living like your forefathers did – within your means, with forebearance and by helping each other.

  • Dumb Broke Loser

    Trevor, what do you think enabled the credit-gorged spending spree, securitized mortgages, two idiotic wars, real estate orgy, medieval wealth disparity, and a falsely superheated economy to begin with?

    Ben Bernanke has little power?

    Do you even know what the Federal Reserve is? They are our official counterfeiters and rate riggers. They give the hot money to their corporate pals, who get to spend it before it is watered down by being dumped into the general economy, which enables that medieval wealth disparity you railed against. Their rate rigging free of the rigors of supply and demand engineers booms and busts scientifically. The super rich insiders know how to bet and make money regardless of which way the economy goes for the rest of us. Artificially low rates sparked the housing and credit madness to begin with. Those rates falsely overheated the economy, and sparked a mass hysteria that built up malinvestments like metastasizing tumors. The Federal Reserve loans money to the government, which enables it to spend beyond its means. That includes all the endless war funding. These wars would be quite impossible without the Federal Reserve! Without the Fed the Amerikan cattle would have to pay taxes to fund everything, including wars. Amerikans would quickly give up on these wars if they saw how much of their paychecks went directly towards paying for them. Instead their taxes go to financing the debt created by the Federal Reserve! As if that weren’t bad enough they take a pay cut year after year through the hidden tax of inflation.

    Really Trevor, you need to at least learn what the Federal Reserve is before you start bashing us for trying to maintain some kind of reasonable standard of living for ourselves and our families while the super rich that have completely rigged the entire economy (oligarchy is not capitalism) enjoy endless paradisal feasts and grandeur at our expense.

    I don’t live in a mansion. I live in a hovel. Fortunately I never fell for the credit card scam. Most of those that did fall for it live in hovels like me, despite having the audacity to “live beyond their means,” i.e., like human beings. The difference is they are now either bankrupt or deeply in debt, while I am just eeking out a meagre existence with no debts.

    The Federal Reserve is an obvious conspiracy of bankers. Central bankers obviously rule the world. Calling it a conspiracy theory won’t change the facts. Even TIME Magazine called Ben Bernanke our “mild mannered economic overlord” when they made the bastard man of the year.

  • Mo321

    Any talk about replacing the Federal Reserve with a better more accountable system is misplaced.

    In the Bible God commands us to look to HIM for our wealth and prosperity. For example in Deuteronomy 8:7 God tells us that HE is bringing us into a good land – where bread will not be scarce and where we will lack nothing. In Deuteronomy 8:10 God continues When you have eaten and are satisfied praise the LORD your GOD for the good land HE has given you.

    We are to look to GOD for our wealth and prosperity and not to banks, man, or any other man made system.

    In Deuteronomy 28:47-48 GOD tells us:
    Because you did NOT serve the LORD your GOD with joy and gladness of heart, for the abundance of everything, therefore you shall serve your enemies whom the LORD will send against you – they will put a yoke of iron around your necks until they have destroyed you.

    The enemies GOD has sent against us are the Illuminati money lenders, and the yoke of iron they have put around our necks is debt.

  • Dumb Broke Loser

    Mo321, it suffices to say that everybody used gold and silver in the Bible. No fourth wise man gave Jesus a wad of fiat paper.