Sketch #9: Get Your Stimulus!
(Clockwise from center: President Barack Obama, Fed Chairman Ben Bernanke, Representative Ron Paul, anonymous investor, President Grover Cleveland, President Andrew Jackson, President George Washington)
“When business in the United States underwent a mild contraction…the Federal Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. The ‘Fed’ succeeded;…but it nearly destroyed the economies of the world, in the process.
The excess credit which the Fed pumped into the economy spilled over into the stock market—-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in breaking the boom. But it was too late:…the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence.
As a result, the American economy collapsed.”
–Alan Greenspan, ‘Gold and Economic Freedom’ (1966)…& former Fed Chairman (1987 – 2006)…describing the circumstances of the Roaring Twenties that led to the beginning of the Great Depression (1929).
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.