History Warnings of Today’s Political Decisions – A Look at the Fed’s Protection of Homebuyers


I would bet every reader of this blog has heard of Mark Twain. On the other hand, I would bet I’m probably the only person on this blog familiar with Craig et al v. The State of Missouri. This article gives quite a bit of insight into Samuel Clemens. Please read it before you read the rest of this post.

I suggest you read the article because you will undoubtedly recognize a good number of today’s “events” in references from quoted Twain writings. It seems not much has changed in the 100+ years Twain put pencil to paper.

You don’t need to read the Craig case. I’ll summarize it in a sentence or two. The U.S. Supreme Court was deciding an appeal from a case in Missouri in which Craig claimed the issuance of bills of credit by Missouri violated the Constitution. Should you decide to read the case, simply put it in your favorite search engine. If you do, you’ll see the court decided in favor of Missouri.

Also, you will get quite an education on paper money and its (il)legality. If you would like more information on how wide spread this idea of emitting bills of credit has become, I suggest you read this article.

To put it all in perspective, at least according to me, I’ll quote Thomas Jefferson:

“What has destroyed the liberty and rights of man in every government that has ever existed under the sun? The generalizing and concentrating of all cares and powers into one body, no matter whether of the autocrats of Russia and France or of the aristocrats of a Venetian Senate.”

I didn’t write this post to even suggest I’m some sort of brain child or have all the answers. I wrote it because

I saw this headline the other day — Fed plans new rules to protect future home buyers. Where in the hell did the Federal Reserve get the authority to step into housing? It just so happens the answer is in a paper written by Sterling E. Edmunds of the St. Louis Bar. His paper is titled: The Roosevelt Coup D’ Etat of 1933-40

Chapter VII is titled: The End of the Cycle of Constitutional Freedom for the American Citizen. Scary, this freedom snuffing activity by the government.

If you decide to research any of the above referenced material, let me know if you think it pertains to today’s events. I’d like to hear your thoughts on the validity of it being the ground work for those of us experiencing its aftermath.

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  1. The Federal Government’s writ and power have expanded tremendously from its original conception by the Founders. Some of these expansions are a result of Constitutional amendment; others not.

    The main culprits, in my opinion are:

    16th Amendment (1913; The Income Tax): This concentrated spending power in Washington. Congress regularly uses its spending prowess to coerce uniformity among the States. (i.e., “Do it our way or we cut off all your highway funds.”). The Courts have never enforced any rational connection between the requirement and the funds withheld. This is why we have national speed limits and drinking ages.

    17th Amendment (1913; Direct Election of Senators): Before this Amendment, the Senate worked for the State governments, and were a check on Federal power. Senators are no longer answerable to State governments, and voters are usually insensitive to this issue. The Federal legislature (Congress) now is unchecked by the States and has all the money it needs.

    FDR’s creation of the Administrative State and the Judiciary’s (forced by FDR) expansion of the Commerce Clause. Mentioned above. Terrible. This is why we have national drug and labor laws, even when localities wish to innovate in the regulation of local matters.

    However, I don’t know how related these are to “today’s events” (if by which you mean the housing bubble and the effects of its slow deflation). We have a national currency in the USA, and its regulation has been given to the Federal Government since Day 1. This only makes sense (you can’t have 50 regulators of one currency). Most of today’s events (certainly the run-up since 2001) were driven by macro economic events that are naturally regulated at the Federal (and global) levels. Returning to the Federal Govt of 1875 would have little effect on them I think.

    This may be a bit counter intuitive, but I think housing prices are primarily inflated over the last 20 years because of the national teacher’s unions and the government monopoly on education. I can’t find the link right now, but it should be common sense to anyone reading this blog that there is a HUGE correlation between the price of a home and the quality of the local school district. The fact is that people want to pay for better education for their kids, but the government’s monopoly on providing it means that you can’t. So instead home prices are bid up where schools are good. It’s a messy way to pay for that kind of thing.

  2. Real Estate Sage on

    What I feel is ,every citizen has to sacrifice his part of liberty for the sake of liberty it self .Otherwise the terms like constitution equality, fraternity…etc will become useless.

  3. There’s still two places in the world actively promoting the citizen sacrificing his part of liberty for the sake of libery itself. They are Communist China and North Korea. Places like Zimbabwe under Mugabe and the “new” Russia under Putin are very close behind. Of course Cuba with its benign version of Fidel can’t be forgotten either.

    For now, I’ll be content not to sacrifice my liberty. Putting it in the hands of collectivist mentalists seems counter productive.

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