Fed News Friday: How to feed the hungry people of the world in one easy step

 

At the level of production humanity is now capable of in the world today, there is absolutely no reason why anyone should go hungry, and yet so many still do. Why? The answer is no great mystery. The proximate causes and their root cause are easy enough to ascertain. Cross-reference a map of conflict zones in the world with a map highlighting areas of malnourishment and it isn’t difficult to draw the correlation between starvation and war. Look again at which governments rank as the most corrupt, and note that they typically govern nations that also rank as the least well-nourished. Government corruption, then, is strongly correlated with world hunger. Finally, pay close attention to one of the most far-reaching and historically significant, yet under-reported stories of our era: the dramatic rise in global food prices, and it should be no wonder that so many of the world’s people remain hungry even at a time when there’s no good reason for anyone not to have enough to eat.

So if the three proximate causes of world hunger are warfare, corruption, and soaring food prices, what is the ultimate cause? We are in luck, because all three share a single ultimate cause in common. If we can strike at this one root, we can relieve its three symptoms and feed so many more of the world’s people with the explosive power of the modern global economy’s productive capabilities. A final end to most hunger in the world is a realistic and achievable goal, even in our lifetimes. Even better– it doesn’t require us to do anything new, launch a new program, or create a new organization. In fact, it involves no longer doing something that we have done for a century now, ending an old program that has clearly failed, and abolishing an old organization whose time has finally come: The Federal Reserve central banking system of the United States. That is your root cause and ultimate reason for the near endless warfare in the world, the corruption of so many of the world’s governments, and the dramatically rising global food prices over the last decade.

It is no coincidence that the Federal Reserve System was created in 1913 and that the first World War started in 1914, and that since then, the entire world has been embroiled in a single, unending conflict with only temporary breaks between hostilities and the occasional change in alliances. World War I, arguably the greatest and most destructive that the world had ever seen, spilled over into a second and even greater world conflict, World War II, which concluded with a full third of the world’s population relegated to the oppression and starvation of communist imperialism, and a “Cold War” between the Soviet Union and the United States, which played out as multiple regional wars using proxy countries from Vietnam, to Korea, to Iran, to Iraq, to Nicaragua, to Cuba, to Afghanistan, and beyond. At the end of this era, the Cold War spilled over into the present Global War on Terror as the unintended consequences of United States hegemony, predicated on Cold War domino theory, would “blowback.” With the Soviet Union gone, previous U.S. allies of convenience against the Soviets in the Middle East and elsewhere turned their weapons and advanced CIA training on America. This entire century, then has been the story of endless global warfare.

Why is it no coincidence that the century of central banking would also be a century of never-ending wars, more brutal, bloody, costly, and total in their nature than any in human history? Because with a central bank capable of printing money on demand, the world’s governments were no longer limited by one of the most effective safeguards against unnecessary war: the people’s aversion to paying the taxes necessary to fund wars. The American Revolution itself was the result of the colonists’ unwillingness to pay the taxes levied by England to pay off its war debts from the Seven Years War with France. But with a printing press and a central banking system, the world’s governments could simply create the money to fund wars out of thin air without raising anyone’s taxes. Instead they would subtly and secretly transfer the cost of their wars to the people when the prices of goods rose as the result of printing too much money. To end starvation, we absolutely must end warfare on this planet. As long as countries are at war, their people’s standards of living will suffer and food will be more scarce than it ever should be. To end warfare, we must cut off its endless source of funding, which is the Federal Reserve.

Corruption is the second proximate cause of hunger in the world, and like warfare, it is a direct result of the central banking policies of the Federal Reserve. For years before his people deposed him in Egypt, the country’s corrupt autocrat, Hosni Mubarak was the beneficiary of billions of dollars in U.S. foreign aid, all created out of thin air, courtesy of the Federal Reserve Bank. Other examples of U.S. dollar-supported dictators and autocrats around the world, whose corrupt governments starve and hurt their people abound. Why? Why would the U.S. government fund these devils? Because that way, at least they’re “our devils.” Remember that before he was an enemy of the United States, Saddam Hussein was an ally of convenience against the Soviet-funded Iranians. His corrupt regime was a beneficiary of money created by the Federal Reserve. The Taliban, one of the most repressive regimes in the world, was likewise a Cold War era U.S. ally of convenience, benefiting from Federal Reserve money. Even the recently-deposed (and killed) dictator of Libya, Muammar Gaddafi, was the beneficiary of Federal Reserve dollars during the Bush Administration, and was hailed as an ally of the United States in the Global War on Terror. The truth is, so many of the world’s corrupt governments hang on to power in great measure because they are funded by the central bank of the United States.

The policy is cynical and evil, but it’s subtle too. Unfortunately, many U.S. citizens will not stand and oppose such a destructive, absurd, and even self-defeating foreign policy until they can see more clearly how they are footing the bill for it– that is until the central bank is gone and foreign aid for corrupt governments can only continue if the government overtly raises taxes on the American people. Without the easy ability to create money, the government will have a strong disincentive to continue sending aid to corrupt governments overseas. Without the endless funding spigots of the American central bank to line their coffers, pay for their repression, and keep their army and police forces well-fed and well-armed, it will be only a matter of time before these broken systems collapse under the weight of their own unsustainable absurdity and evil just as the Soviet Union did. The only reason these weeds thrive and grow is the Federal Reserve keeps watering them.

Finally, the overall effect of no more printing money to fund wars and corrupt governments will be no more price inflation for food. It’s no coincidence that in the same decade that the Federal Reserve has ramped up its money creation to levels unprecedented in its hundred year history, the prices of global commodities like fossil fuels, precious metals, and food have soared. As with all goods in a market, the more money there is, the less valuable each unit of that money becomes, and the more units of it you’ll need to buy the same number of units of another good like oil, silver, or wheat. So many of the world’s people are going hungry because food is becoming more expensive. Food is becoming more expensive because the world’s reserve currency– the U.S. dollar– is losing its value as the Federal Reserve creates more and more of it out of thin air. It creates that money to loan to corrupt governments (including our own corrupt government in Washington D.C.) and wealthy financial institutions. They profit from the creation of money at the expense of the world’s poor and middle class who struggle to feed themselves because of the creation of money.

As you can see, the solution is simple. Ask Congress to take steps to abolish the Federal Reserve bank. It is an experiment in economics that has failed and history makes that clear. The bank was created in 1913 by an act of Congress for the twin purposes of keeping unemployment low and prices stable. It has done neither. Since its creation, the U.S. has drifted closer and closer to the European economy’s never-ending, high levels of structural unemployment and its prices have been anything but stable– they’ve continued to rise over the last hundred years since the creation of the Fed so that it takes a dollar today to buy what was only five cents in 1913. In addition to failing at its own mission, the experiment in central banking had disastrous unintended consequences: the power of endless money creation was all too tempting for the power-hungry, and created perverse incentives that rewarded and perpetuated endless warfare, rampant corruption, and the subtle transfer of wealth from poor people to wealthy people as the wealthy prospered from easy money created out of thin air at the expense of the poor who had to pay higher and higher prices over their lifetimes, seeing the value of the money they had labored so hard to earn subtly and mysteriously diminish over time as it became worth less and less on the market for goods like food.

If you want to end world hunger (and knock off warfare and a few corrupt dictators all in one fell swoop), the solution is simple: END THE FED.

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