Wednesday, October 28, 2009

Toastmasters Speech #6 "Vocal Variety"

The Monster From Jekyll Island

It began one dark and scary night in the year 1913 on Jekyll Island. Seven very powerful bankers had a secret meeting and set out to devise a scheme to create a monster. Now, you ask yourself, why would these bankers create this monster? Do these men want to hurt others? Well no, in a sense, but these bankers are willing to sacrifice others if they can gain more power and money. The bankers created a monster that is so deceptive that it deceived the US government to accept it. This monster is so cunning that it can burden, and effectively tax the US workers without their knowledge. This monster is alive today and affects all of us. Now, you may ask, what is this monster? I will tell you, but first I must say that this monster is so powerful that it can control many of the banking systems in the US. It is the Federal Reserve. Today, I will explain why the Federal Reserve is such a monster.

First, the Federal Reserve is such a monster because it leeches off hard earned money of the US taxpayers without their knowledge with the hidden tax of inflation. It does this with its magic powers that can make money out of nothing. The Federal Reserve is able to create money, which increases the money supply and causes all of the money as a whole to become devalued, which causes inflation. You might ask yourself, is the Federal Reserve counterfeiting? Yes, but it is perfectly legal. The US government backs the money created by the Federal Reserve as legal tender and it is illegal for anyone to reject the currency created by the Federal Reserve.

Second, the Federal Reserve is a monster because it effectively supports the banking industries risky behavior. The men at Jekyll Island created this central Federal Reserve in order that they could loan out this created money with minimal risk. Before the Federal Reserve, the banks could only loan out as much as they had in deposits. With the Federal Reserve, the loans are not made with deposits but money created out of thin air. Banks can loan the money, collect the interest, and minimal deposits are required, thus taking away most of the risk. Even more scary, is the fact that if many of the loans went default, the government would just bail out the bank if it was deemed “Too big to Fail”…leaving smaller banks on their own. This only encourages bigger banks to give out more loans, yes even risky, high interest loans, with the knowledge that the Federal Reserve will bail them out when they fail.

The final and most frightening part of the Federal Reserve is that it is almost impossible to kill. It affects all of us. Most of the money used today is based on credit supplied by the Federal Reserve. We have credit card loans, car loans, and house loans. Even the US politicians feed off it. The US government controls the Federal Reserve and anytime it needs money, then the Federal Reserve prints it. It gives politicians the power to deceptively tax US citizens without their knowledge. This allows US politicians to fund their special projects, social programs, and stimulus projects to keep their constituents happy, so they can continue to get reelected. The politicians would never remove the monster of the Federal Reserve that helps their career.

Now, I would like to tell you that this is just another scary story. Oh no, no, this perhaps might be the scariest story… because the monster still exists. The Federal Reserve feeds off unsuspecting US citizens with the hidden tax of inflation. It encourages big banks to continue in risky behavior knowing that the Federal Reserve will bail them out. Last of all, the monster of the Federal Reserve cannot be stopped, because the very government that can end it loves to feed off of it.

1 comment:

Mary said...

Thanks for explaining something I never really understood before! I agree with you that it is a monster and now I understand how all this government spending that the current administration wants to do will whittle away our economy and the postion our country has had in the world.