You’ve seen the gold commercials. You’ve heard the commenters and prognosticators. They’ve told you (correctly) that the U.S. central banking system has increased the monetary base of the United States at a pace previously unheard of in our history. They’ve told you over and over again to brace for an imminent wave of high, even hyper, inflation. But it hasn’t come.
People with sound economic principles and good minds have been pushing the imminent inflation line more aggressively. I keep telling them that they’re right, but early. Some listen; some don’t. But to give them credit; they’ve had a good point: the Fed has created an enormous pool of ‘money’ since the credit crisis. In fact, they have more than tripled their monetary reserves. Doesn’t that mean that we should have a more than tripling of prices? If Milton Friedman is right (and I think he is) that ‘inflation is always and everywhere a monetary phenomenon,” then it stands to reason that if the Fed triples it’s monetary reserves, we should inflate our way up to a tripling of our price level. Even allowing for the time delays and the slower circulation of money in a more slowly moving economy, it seems as though monetary shenanigans which started in 2007 should have been felt by the summer of 2012. Cont. Reading
By Jerry Bowyer
Hyperinflation Special Report (2011)
Comments:
Great article! It is a good explanation of how private currency monetary systems work and why they are doomed to fail the interest of American citizens.
As Thomas Jefferson warned some two hundred years ago, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Abraham Lincoln’s opinion was no better: “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
Now the Supreme Court opened the door for law suits to attack the Federal Reserve System’s private currency as legal tender when it affirmed the limits on congressional power and authority to mandate citizens use the products of commercial enterprises in the recent healthcare case. If Congress cannot mandate citizens buy health insurance or eat broccoli, does not have the authority to require citizens, corporations, state and local governments accept private currency as payment for debts.
Only sovereign governments have the power and authority to issue legal tender currency.
People with sound economic principles and good minds have been pushing the imminent inflation line more aggressively. I keep telling them that they’re right, but early. Some listen; some don’t. But to give them credit; they’ve had a good point: the Fed has created an enormous pool of ‘money’ since the credit crisis. In fact, they have more than tripled their monetary reserves. Doesn’t that mean that we should have a more than tripling of prices? If Milton Friedman is right (and I think he is) that ‘inflation is always and everywhere a monetary phenomenon,” then it stands to reason that if the Fed triples it’s monetary reserves, we should inflate our way up to a tripling of our price level. Even allowing for the time delays and the slower circulation of money in a more slowly moving economy, it seems as though monetary shenanigans which started in 2007 should have been felt by the summer of 2012. Cont. Reading
By Jerry Bowyer
Hyperinflation Special Report (2011)
Comments:
Great article! It is a good explanation of how private currency monetary systems work and why they are doomed to fail the interest of American citizens.
As Thomas Jefferson warned some two hundred years ago, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Abraham Lincoln’s opinion was no better: “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
Now the Supreme Court opened the door for law suits to attack the Federal Reserve System’s private currency as legal tender when it affirmed the limits on congressional power and authority to mandate citizens use the products of commercial enterprises in the recent healthcare case. If Congress cannot mandate citizens buy health insurance or eat broccoli, does not have the authority to require citizens, corporations, state and local governments accept private currency as payment for debts.
Only sovereign governments have the power and authority to issue legal tender currency.
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