Dear Fellow Patriot,

I wanted to make sure you saw Dr. Paul's
recent column on the Federal Reserve.

For decades, Big Government socialists and
the global financial elites spoon-fed Americans propaganda about
Keynesian "solutions" for every crisis -- massive stimulus
spending made possible by the Fed printing money out of thin air.

As Dr. Paul points out, the Fed isn't just
pumping trillions into the market to benefit the big banks with
money printed out of thin air -- they're now gobbling up
individual corporate bonds and bailing out state and local
governments' debts.

The truth is, the Fed began has been picking
winners and losers in the economy one way or another for a long
time.

Such actions are just plain wrong . . . even
more so when they're used to advance political goals.

That's where this new bond-buying program is
going. And it is yet another example of why we must force
Congress to Audit the Fed.

Campaign for Liberty will keep you up-to-date
on this looming battle and our plans to strike at the root of the
Big Government Leviathan -- the Federal Reserve itself. For now,
please read Dr. Paul's column, and then, forward it to your
family, friends, and coworkers.

And chip in $50, $25 , $10, or whatever you
can afford to support Campaign for Liberty's efforts to expose
the Fed and put a stop to all the havoc wrought by the Federal
Reserve system.

In Liberty,


Norm Singleton
President






The Federal Reserve is Getting Desperate


By Dr. Ron Paul, M.D., C4L Chairman
June 22, 2020



In a sign that the Federal Reserve is growing
increasingly desperate to jump-start the economy, the Fed's
Secondary Market Credit Facility has begun purchasing individual
corporate bonds. The Secondary Market Credit Facility was created
by Congress as part of a coronavirus stimulus bill to purchase as
much as 750 billion dollars of corporate credit. Until last week,
the Secondary Market Credit Facility had limited its purchases to
exchange-traded funds, which are bundled groups of stocks or
bonds.

The bond purchasing initiative, like all Fed
initiatives, will fail to produce long-term prosperity. These
purchases distort the economy by increasing the money supply and
thus lowering interest rates, which are the price of money. In
this case, the Fed's purchase of individual corporate bonds
enables select corporations to pursue projects for which they
could not otherwise have obtained funding. This distorts signals
sent by the market, making these companies seem like better
investments than they actually are and thus allowing these
companies to attract more private investment. This will cause
these companies to experience a Fed-created bubble. Like all
Fed-created bubbles, the corporate bond bubble will eventually
burst, causing businesses to collapse, investors to lose their
money (unless they receive a government bailout), and workers to
lose their jobs.

Under the law creating the lending
facilities, the Fed does not have to reveal the purchases made by
the new facilities. Instead of allowing the Fed to hide this
information, Congress should immediately pass the Audit the Fed
bill so people can know whether a company is flush with cash
because private investors determined it is a sound investment or
because the Fed chose to "invest" in its bonds.

The Fed could, and likely will, use this bond
buying program to advance political goals. The Fed could fulfill
Chairman Jerome Powell's stated desire to do something about
climate change by supporting "green energy" companies. The Fed
could also use its power to reward businesses that, for example,
support politically correct causes, refuse to sell guns, require
their employees and customers to wear masks, or promote
unquestioning obedience to the warfare state.

Another of the new lending facilities is
charged with purchasing the bonds of cash-strapped state and
local governments. This could allow the Fed to influence the
policies of these governments. It is not wise to reward
spendthrift politicians with a federal bailout - whether through
Congress or through the Fed.

With lending facilities providing to the
Federal Reserve the ability to give money directly to businesses
and governments, the Fed is now just one step away from
implementing Ben Bernanke's infamous suggestion that, if all else
fails, the Fed can drop money from a helicopter. These
interventions will not save the economy. Instead, they will make
the inevitable crash more painful. The next crash can bring about
the end of the fiat monetary system. The question is not if the
current monetary system ends, but when. The only way Congress can
avoid the Fed causing another great depression is to begin
transitioning to a free-market monetary system by auditing, then
ending, the Fed.



###

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www.CampaignForLiberty.org





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