Letter: The people deserve better
Posted on Dec 04, 2013 - 01:14 PM Printer Friendly View
It is becoming evident that the media is either complicit or intimidated when it comes to reporting the threat posed to the people by continued dollar creation, while it is no secret that the Federal Reserve is engaging in a massive expansion of the money supply, referred to as Quantitative Easing. The money supply has tripled since the financial crisis of 2008. Fortunately, not all of the mainstream media is complicit or intimidated. The Wall Street Journal (Aug. 27, “The Danger of an All-Powerful Federal Reserve”) warns, if the Fed goes through with its new “macroprudential” strategy, the world will go into an economic conflagration.
Unfortunately the Federal Reserve presumes to manage bubbles created in a robust economy by manipulating the interest rate. Monetary policy, however, is much enhanced in a transparent and predictable methodology. The forces of the market will ultimately overwhelm manipulation, no matter how strenuously applied. The global financial conditions are dire and getting worse every day.
The world is experiencing the result of every currency being of the fiat variety, backed by nothing. This is further compounded by many of the world’s economies attempting to print its way out of debt and to increase its exports by devaluing its currency. The Federal Reserve and other of the world’s central banks have managed to create liabilities that have no intrinsic value. Meanwhile, many of the world’s central banks are buying gold in huge quantities with currency that was created out of thin air.
It is a basic economic given, as fiat currencies decline, real money will increase in value. This is a severe conflict of interest being perpetrated by the central bankers upon the people.
America under the policies of the Federal Reserve, a central bank, has lost 98 percent of the purchasing power of the dollar since its inception in 1913. The vast majority fail to realize that prices rise because the value of the dollar falls.
The people deserve better. The toil and inventiveness of the American people created the greatest example of wealth and liberty ever experienced by the common man. Meanwhile, that wealth is being stolen by manipulative central banks and self-interested politicians. We are about to have stolen from us the remaining 2 percent of the U.S. dollar’s value.
Port Haywood, Va.