ECONOMIC RESEARCH GROUP

MEETING

February 20, 2008

Chairman Tom Keefer called the meeting to order at noon with 36 members in attendance. After inquiring if there were any guests in present Tom continued with by informing the group that he has firm commitments for the speakers though May. There are still openings for speaker Chairman in 2009 for the months of June and July, so if you have not signed up to participate contact Tom Keefer or Bill Schinagl.

Our next speaker will be Philip Keefer who will speak about the programs he is involved with at the World Bank. Mark your calendars for March 19, and be sure to attend.

After announcements were completed Tom ask if Chairman Emeritus Jim McGill would favor us with a joke or an amusing story. True to his Irish heritage Jim had a perfect story to tell.

After lunch was served Tom introduced Gil Goodrich our speaker Chairman. Gil proceeded to tell us about the film we were about to be shown. The film was produced by the Mises Institute and covered the founding of the Federal Reserve Bank. It was an interesting portrayal telling how the Bank was deemed necessary after the panic of 1907 by two of the richest men in the country.

J.P. Morgan and John D. Rockefeller met with their fellow financiers and then with congressional leaders and the President to get their plan put into action. Nothing was accomplished until 1913 when President Wilson signed the charter establishing the Bank. The film went on explaining basic economic reasons why banks were necessary in the transition from a commodity-based exchange to a paper based economy. The film depicted the Fed as a contributor in the debasement of the US currency and urged the return to a currency backed by hard assets of gold and silver. It is known that the Government does have Gold stored in various locations such as at Fort Knox and NY City.

The New York Fed Stores $203.3 billion in gold of which 2 to 5 % is owned by the US. Gold changes hands today not by physical movement but by ownership of storage receipts. J.P. Morgan Chase stores silver for various foreign financial institutions.

An interesting discussion followed.

Great presentation Gil.

Our Next meeting will be held on March 19 at Dominic’s Coyote Point. The menu will be a choice of Chicken Teriyaki or Salmon. Please call Bob Way if you haven't made a meal selection. His phone # is 345-7014.

William Schinagl

Secretary