Thread: The Fiat Currency Disease

The Fiat Currency Disease

Yesterday the Federal Reserve completed the latest meeting of its Federal Open Market Committee. It re-affirmed its plan to purchase by the end of the year some $1.8 trillion – yes, $1.8 trillion – of US government paper, comprising of agency debt, agency mortgage-backed securities and US Treasuries. That’s nearly $6,000 for every man, woman and child in the United States.

While $1.8 trillion is a gargantuan amount of money, the actual amount is of secondary importance to the essential, piercing question. Namely, where is this $1.8 trillion going to come from?

The answer is not pretty. These dollars will come from the same place that all other dollars are created these days, namely, out of thin air. Here’s how Mr. Bernanke explained this monetary sleight-of-hand before he was appointed as chairman of the Federal Reserve. “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.â€

I've been under the impression that our government gives something like an interest bearing treasury note for the Federal Reserve to hold for the Federal Reserve Notes that are printed up when we don't have any money.

You know for all of the wars, bailouts and health care and such.

That is how they as a bank collect interest from us.

When we had money backed by gold I would imagine the Federal Reserve held gold to represent the paper that was out there.


Anyway to get past all of the confusion here is a picture to look at.




This is a representation of the purchasing power of the money in your pocket. The Consumer Price Index.

See how it held steady when we were on the gold standard? The little bumps are when we toyed with going off of the gold standard during wars, but people always returned to their senses.

When they print up money that we don't have the value falls, or as on the chart, the line rises. That is what they have been doing to us all of our lives. You put the money in your pocket but if you let it stay there to long it becomes less valuable. Well it's happening faster than you can spend it.


If you try and play it smart and by a bunch of stock for your retirement they get you again. The next picture is of the Dow Jones Industrial.




See how it looks like you are doing well, and boy howdy is it going up. (These charts do not cover the exact time frame.)

The thing is, is that you may have more money but money that is worth less because the government has been using money it didn't have. On top of the devaluation of your money you still have capital gains to pay.

The real evil part is that if you and the other, "We the People" were to decide to embark on ANY freedom that the powers that be didn't agree with, they can out print your real hard earned money and get everything their way. Not only get everything their way, but their way by stealthily sucking the value out of the money in your pocket!

Now that this concept has come over me I see evidence of it happening almost every day now.

Though at the moment the only ones I can think of are the subversion of the worlds immigration law and the way the global warming crowd can silence the opposition with their unlimited funding.

I suppose if we thought on it we could come up with a pretty long list.

As I mentioned in the beginning of my last post that the government gives the Federal Reserve interest bearing treasury notes.

Well those are just more paper.

Interest bearing paper. On a national debt of 11,000,000,000,000 we would give the men and women that own the Federal Reserve about 440,000,000,000 a year in interest at a rate of 4%.

I'm not sure what rate we are paying them at.

I don't think once the money leaves the country and goes to them any taxes are ever paid on it.

At the end of my first I said,

I suppose if we thought on it we could come up with a pretty long list.

If I was to start a list of the way the government subverts our quest for freedom with the creation and use of their fiat money, Illegal immigration would have to top the list because it was from watching that I discovered the funding for thing like their front organizations like La Raza.

Recently I just saw evidence of a new way they are spending money we don't have to get what they want in regards to the push for a health care plan.

They are running commercials on television to twist our minds to support THEIR grandiose scheme and using OUR money against us.