Quote of the Day: "In the general course of human nature, a power over a man's subsistence amounts to a power over his will." -- Alexander Hamilton (1757-1804) Source: Federalist Paper 79
Subject: Legalized Counterfeiting Update
We see no moral or practical difference between new dollars created by counterfeiting rings and new dollars created by the Federal Reserve System (the FED). Both are forms of stealing. The only differences are . . .
* One form of counterfeiting is technically legal, and the other illegal
* The local counterfeiting ring steals from local merchants, whereas the Federal Reserve steals from everyone, for the benefit of those who get the new dollars first
Whenever the FED creates new dollars the value of every dollar you hold diminishes. It may take a while for this loss to be felt, but the longer the new dollars circulate the more likely it is that you will feel the loss, and the more likely it is that bubbles will result . . .
. . . followed by recessions.
Apologists for the FED assert that legalized counterfeiting is the cure for recessions. We assert that it is the cause of them.
Last Fall the FED began implementing its supposed legalized counterfeiting cure on a massive scale. Here are the numbers (in billions) showing the massive rise in the quantity of dollars . . .
We want to call your attention to the numbers for May through August. The FED has promised that it will withdraw the new dollars it has created just as soon as the economy recovers. There were signs that they were attempting to do that at the end of May, and the downward trend continued through July. But now August has come and gone and the money supply has grown again.
Please also notice that the price of gold has spiked above $1,000 an ounce. We've always been skeptical that the FED would be able to reverse its counterfeiting binge. It appears the gold market is skeptical too. If our worst fears are realized then we are all in big trouble.
Look at that list of numbers again. The money supply has basically doubled over the past year. If this money remains in circulation then the value of your savings will tend to be cut in half, as will the purchasing power of your paycheck. Can you afford that?
It gets worse. If we're correct that legalized counterfeiting causes recessions, we may yet face an economic downturn equal to the increase in the money supply.
Worse still, we know from the example of the 1970s that it's possible to have both recession and price inflation at the same time. This too could be in your future.
What can you do about it? Some think we need to end the Fed's ability to counterfeit. We agree. But there's an easy way to do that, and a hard way. We prefer the easy way.
That's why we continue to focus our efforts on three crucial bills NOT YET RE-introduced by Congressman Ron Paul . . .
* The 15-word "Honest Money Act" that would repeal the 41-word legal tender law.
* The 104-word "Free Competition in Currency Act" that would repeal the government monopoly over the creation of coins for use as currency.
* The 193-word "Tax-Free Gold Act" that would prohibit federal and state taxes on precious metal coins and bullion.
These three simple bills would allow you to hold your wealth and conduct your business in forms of money other than Federal Reserve Notes. This would create a free market money system and pave the way for the end of the FED.
We want to point out to you that every new fact we provide to you is another opportunity for you to write a letter to your Congressional employees, and ask for what you want. Please take advantage of this opportunity.
Please use DownsizeDC.org's Educate the Powerful System to ask your representatives to introduce the "Honest Money" bills.
Use your personal comments to tell your Congressional employees that you don't want to be forced to hold your wealth in dollars that are constantly devalued by the FED's relentless legalized counterfeiting. We recommend that you cut and paste the numbers from above showing the explosion in the size of the monetary base.
And you can spread the word about this campaign with the new music video, "Brother Can You Spare a F.R.A.U.D.?"
Thank you for being a part of the growing Downsize DC Army. To see how fast your Army is growing please check out the Keeping Score report below my signature.
Jim Babka, President
KEEPING SCORE REPORT
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