Quote of the Day: "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes Source: "The Economic Consequences Of The Peace"
Subject: Counterfeiting Update
In May of last year the U.S. money supply stood at roughly $834 billion. Now, a year later, the Federal Reserve has created an additional $941 billion out of thin air. Pay close attention to those numbers...
* The amount of new money the Fed has created is roughly $107 billion more than all the money that was in circulation just a year ago
* In other words, the U.S. money supply has more than doubled
Think about what this does to the value of your dollars, to your savings, to your paycheck, to your retirement income? A doubling of the money supply means your money is worth half what it was.
Of course, your money's loss of value won't manifest itself overnight. It will take time for the Fed's counterfeiting to drive up prices. But those who get the new money first will be able to spend it while prices are still low, increasing their wealth at your expense.
The Federal Reserve, as you might expect, promises that prices won't rise. They claim they'll withdraw their counterfeit money before that happens. Do you feel comforted? Should we really believe that...
* The Fed can really undo so much counterfeiting
* The attempt to withdraw the counterfeit dollars won't cause economic disruptions of its own
And if they did sop up their funny money, wouldn't that mean another "contraction?" ...more unemployment? ...other sectors in trouble and screaming for a taxpayer-funded bailout?
Our position is simple. If it's wrong for individuals to counterfeit, it's also wrong for the government to do it. What we need is money that no one can counterfeit, like gold and silver. Some people want to make this happen by abolishing the Fed. We agree. That needs to happen. But it's a big step. We think there's an easier way...
Congress should start by ending the Fed's monopoly control of money. Congress should permit you to use whatever form of money you prefer. This would...
* Empower the creation of an alternative money system
* Reduce the Fed's ability to counterfeit by forcing Federal Reserve Notes (FRNs) to compete with honest money
* Make it easier to abolish the Fed once a new money system is fully operational
To make this happen Congressman Ron Paul introduced three "Honest Money" bills in the last Congress (110th). These bills would...
* Repeal the legal tender law that forces you to accept FRNs
* Repeal the federal government's monopoly over coinage
* Prohibit federal and state taxes on precious metal coins and bullion
These simple changes would allow you to buy and sell using means of exchange other than FRNs. Sadly, Congressman Paul hasn't re-introduced these bills. If you're one of his donors or constituents please calls his office at 202-225-2831 and ask him to re-introduce his three "Honest Money" bills, combined as one bill. As for the rest of us...
We should tell our own representatives to ask Congressman Paul to re-introduce these bills, or do it themselves. You can send your instructions using DownsizeDC.org's "End the Inflation Tax" campaign.
Use your personal comments to tell your representatives that you've seen the Federal Reserve's lastest counterfeiting numbers. Object to the fact that the Fed has increased the monetary base from roughly $844 billion as of May 2008, to roughly $1,775 as of May 2009.
To exceed the 36,512 messages we sent last month we need to send at least 1,651 messages today.
Thank you for being a part of the growing Downsize DC Army. To see how we're growing, check out the Keeping Score report below my signature.
Jim Babka, President
We grew by 12 net new members over the weekend, which brings us to 1,163 net new members for the year. The Downsize DC Army now stands at 25,512 -- 51% of the way from 25,000 to 26,000!
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