The Shot!

[Casen Gregg]

As you know, government needs to spend to sustain itself. By controlling wealth and creating dependency upon this control, elected officials can rest assured that its vulnerable, reliant constituents will continue to vote them into power. Because the government has and will continue to spend more than it can tax or borrow, it is left with only one option – counterfeit more money. That’s right, in order to keep up with the demand of vote buying schemes, government, since 1913 has printed out valueless dollars, and this is no different than counterfeiting.

99% of Americans are either unaware of this immoral injustice or do not see it as a problem. Many feel that creating more money is a good thing, as there is more wealth to spread around…Wrong! Creating this fiat system is creating another hidden tax and throwing our nation into deeper monetary uncertainty.

The tax I speak of is the inflation caused by more and more dollars being put into the system. This influences the dollar value and transfers the wealth from those who are saving and investing, to those involved in this glorified subsidy.

Our founding fathers realized the dangers of counterfeit money and its effect on runaway inflation. Therefore, it mandated in the Constitution that Congress would control monetary policy and that the dollar would only be backed by stable commodities, such as gold and silver. This means that every dollar was a federal note that could be redeemed at the U.S. Treasury for a fixed amount of Gold.

Of course, once again, our government decided the rule of law was a little too inconvenient in achieving total control over our lives, and therefore, in 1913 it created a centralized bank – The Fed, and in 1933 it completely deviated from the Gold standard. As an aside, in deviating from the gold standard, FDR made it illegal to privately own gold. Now with actual wealth out of the control of the public, government was free to begin distributing as it saw fit, and as Lenin observed “not one man in a million” would be able to uncover this indirect monetary transfer.

This policy has been a complete failure since its inception and has held Americans hostage to the boom and bust economy that is controlled by artificial money supply. The first example of this was in the “Roaring 1920’s” when the Fed pumped money out as fast as it could cut down the trees. The immediate effect was a booming economy; however, the euphoria had to come to an end. Our population had to correct itself and stifle the money flow, and like a junkie quitting heroin, the withdrawal pains were immense… Enter the Great Depression. Now don’t think I am insinuating that the Fed’s steady devaluation of the dollar was the sole cause of this fiasco. I do however, believe that the Great Depression should have been part of a typical economic cycle that is synonymous with a fiat system; however, couple it with incompetent leadership (Hoover/FDR) and you have a disaster – See: Smoot Harley Tariff, 1932 income tax rate change, criminalization of gold, the Agriculture Adjustment Act, the Wagner Act, the Wage and Hour Act, etc.

More recently we have seen the continued problems with a fiat system, which encourages our society to live beyond its means. In the 1970’s we had stagflation. Over the last couple of decades we have had bubbles burst in different sectors – most recently the dotcom bust. Now we are watching the value of our dollar plummet, as the rest of the World (rightfully so) loses trust in our monetary system. See today’s article on Bloomburg.com.

Since the Fed began, the value of our dollar has dropped almost 100%, and our money supply has tripled since 1990 alone. With no common denominator to keep prices in check, there is no reason to have faith in the U.S. dollar.

It is time for our current government to stabilize the dollar with a value-backed legal tender. Doing this will stifle run-away inflation, involuntary wealth transfer, and will bring international trust back into our financial markets.

This entry was posted on Tuesday, July 24th, 2007 at 5:36 pm and is filed under Casen Gregg, The Chaser, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.