So Easy, Even a Cave Man Can See it … The Cost Of Kidding Yourself

November 29, 2012

The only way to accurately measure changes in a nation’s economy is to do so relative to the world. According to the World Bank, the U.S. represented 31.8% of the world’s economic activity in 2001. By the end of 2011, that share had dropped to 21.6%, meaning America’s slice of the world economy is 32% smaller than it was a decade ago, and getting smaller every day.

Look carefully at the chart. One way of making it not so noticeable that the economy is shrinking just print more money. That way double the Money and you Can’t see the decline. In dollars  it’s growing. Why do you think we ditched the gold standard, not having to have dollars backed by gold, makes it so much easier.

Ben Bernancke ….

They believe that they have the ability to avoid recession by simply printing their own money.  As America’s 100-year numbskull (and current Federal Reserve Chairman) Ben Bernanke once mused:

“…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

True dat, Ben….unless there’s “cost” associated with turning the nation’s currency into the world’s laughing stock….

When does the illusion end… When no one wants dollars anymore. The end.

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Legalize Competing Currencies!

April 24, 2012

Every once in a while people begin to see the error of their ways. Such as now with currency, and the problems of the government printing machine, sky rocketing currency devastation through devaluation. Something that does not happen when your currency is backed by gold.

Sure there is a finite supply of gold, but isn’t that the answer not the problem? There are some things even Ron Paul is right about.

From Freedom Works:

The value of the U.S. dollar is rapidly declining. The dollar is worth roughly half of as much as it was in the mid-1980s. Since the creation of the Federal Reserve in 1913, the dollar has lost a whopping 97 percent of its purchasing power. The Federal Reserve excessively printing money has devalued our currency which means the dollar can’t buy as much as it used to.

Many people assume that the increase in prices over time is just a natural occurrence. But that’s not true. The Federal Reserve’s manipulation of the money supply is primarily responsible for the rising prices of goods and services. The more dollars in circulation, the less the money is worth. It now takes more dollars to buy the same amount of goods as it had taken before. It used to take 79 cents to purchase a pound of bacon in 1962, now it cost approximately $4.77. The poor get hurt the most by rising prices since they have less disposable income.

More Americans are understandably losing trust in the dollar. After all, the paper dollar is backed by absolutely nothing and the Federal Reserve can print as much as it wants with no restrictions. Unfortunately, unconstitutional federal tender laws force Americans to use these Federal Reserve notes issued by the Federal Reserve. Americans are not legally allowed to use other forms of currencies such as gold and silver in transactions.

Why not?

Unlike the paper dollar, gold and silver holds their value over time. That’s exactly why there are laws forcing Americans to use the Federal Reserve issued fiat currency. Without any coercive laws, Americans would likely start using valuable alternative currencies instead of the paper dollar. The Federal Reserve desperately wants to preserve its monopoly on currency.

Americans should be free to use whatever currency they desire. It’s time that the paper dollar is forced to compete with other forms of currency. The prospect of Americans using alternative currencies would likely encourage the Federal Reserve to stop destroying the value of the dollar through inflating the money supply.

While ending the Federal Reserve is the ultimate goal, repealing unconstitutional federal legal tender laws and legalizing competing currencies is a step in the right direction.

Click here to see FreedomWorks’ letter in support of Rep. Ron Paul’s Free Competition in Currency Act.


How The Gold Standard Was Ended — Just Cause A Public Panic, Which FDR Did

March 5, 2012

On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.

Soon after taking office in March 1933, Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.

On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.

The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.


Get Ready for Inflation and Higher Interest Rates

June 11, 2009

Trouble ahead — As if the local corner gasoline station isn’t enough to warn you of the coming inflation, oil is a better investment than dollars, then this WSJ article by Aurthur Laffer should be your wake up call.

laffe_NS_20090609175213

This is the latest of what Glen Beck did originally with his ‘Al Gore on the money supply’. Only now, it’s getting much much worse. The time horizon is now down to less than a year.


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