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Ron Paul Money Bill
& the Meaning of Inflation
[COMMENT: Here is a good lesson in economics.
Learn it well. Our government and shadow government (globalist) has been
stealing a river of money out of our economy and out of our savings and earnings
for at least a century. That is theft, and it is treason against the
American people. Time to put a stop to it. See "Conspiracy
D o w n s i z e r - D i s p a t c h
Change the political environment. Recruit more Downsizers. Share this
message with others.
Quotes of the Day:
"Inflation has now been institutionalized at a fairly constant 5% per year.
This has been determined to be the optimum level for generating the most revenue
without causing public alarm. A 5% devaluation applies, not only to the money
earned this year, but to all that is left over from previous years. At the end
of the first year, a dollar is worth 95 cents. At the end of the second year,
the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on.
By the time a person has worked 20 years, the government will have confiscated
64% of every dollar he saved over those years. By the time he has worked 45
years, the hidden tax will be 90%. The government will take virtually everything
a person saves over a lifetime."
-- G. Edward Griffin
Subject: New Ron Paul money bill
The above quote may need some explanation. Most people don't know that the
Federal Reserve has the power to create new dollars out of thin air.
Most people also don't know that this is one of the ways the government pays its
bills. The process is simple . . .
It's a neat trick. The politicians don't have to raise your taxes, but they have
more money to spend.
- The Federal Reserve creates new dollars
- It transfer these dollars to the federal government in return for
- The U.S. Treasury uses this money to cover some of its expenses
What happens when this new money hits the economy? Apologists for the Fed use a
clever supply-and-demand argument to claim that nothing at all happens. Here's
how the argument works . . .
But there are two big problems with this argument. First, it assumes that the
Fed will be able to determine the total supply of goods and services in the
economy, and keep the money supply in balance with it. This assumption causes
the argument to fail, instantly.
- Economic growth equals increased productivity equals an expanded supply
of goods and services
- An expanded money supply equals an increased demand for goods and
- If the expanded demand equals the expanded supply prices will remain
- Insto, presto, no price inflation will result
Total U.S. economic activity amounts to many trillions of productive events. No
amount of reporting to the government could possibly measure this with any
degree of precision. It's inevitable that the Fed will misjudge how big the
economy is, and thereby misjudge how much money creation is consistent with
avoiding price inflation.
When the Fed causes the money supply to grow faster than productivity grows,
supply and demand will be out of balance. There will be more money chasing
relatively fewer goods. The result will be higher prices on the things you buy.
Each of the dollars in your pocket will buy less than they did before.
Your savings will lose value. This is one way you pay the government's inflation
tax. Here's another way . . .
Your wages will rise slower than prices will. It's much easier for a
super-market to change a price tag on a carton of milk than it is for your
employer to adjust your compensation. Your standard of living will decline as
your paycheck buys less. This is another way you pay the inflation tax.
How do we eliminate the hidden inflation tax? Congressman Ron
Paul has developed a simple approach to this. He wants to end the Fed's monopoly
over the money supply. He wants to make the Fed compete with other forms of
money, such as gold. This competition would reduce the Fed's ability to inflate
the dollar supply. Toward this end . . .
He first proposed the "Honest Money Act," which would repeal the legal tender
law and provide people with increased legal security to make transactions in
other forms of money, such as gold.
Now he has a new bill, designed to remove the federal government's monopoly
control over the creation of coins. This new bill is called the "Free
Competition in Currency Act."
We have joined these two bills into one campaign!
If you want to stop paying the inflation tax please send Congress a message
asking them to co-sponsor these two bills.
You can do so here.
Thank you for being a part of the growing DownsizeDC Army.
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