The plan is to steal not just from my grandchildren, but from all of us. Each American anywhere who measures the value of his savings, the pay he receives, the stocks he owns and every other possession he has in dollars — the currency that is created and controlled by our central bank — is a target.
Every time the Federal Reserve turns on the printing presses and creates “money” out of thin air (or, more accurately, creates a digital entry on a computer screen), it reduces the value of all the money that is already in circulation.
The equation is simple: The more fiat (unbacked) currency that is created, the less each individual currency unit is worth. The creation of fiat money is the only reason for inflation. Rising prices do not cause inflation, as the powers that be would like you to believe. You see, if you accept that false explanation, you will put the blame for rising prices on businesses — not on government, where it belongs.
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No, it is the vast and unending creation of more fiat money (which can be done only by our legal counterfeiters, the Federal Reserve) that has caused the U.S. dollar to lose 95 percent of its purchasing power since the Fed was foisted on us nearly 100 years ago.
The Federal Reserve was born in a conspiracy by elitist bankers and government stooges. If you want confirmation of that accusation, click here to read "The Conspiracy That Is The Federal Reserve," based on the interview I did with G. Edward Griffin, author of the superb exposé of the founding of the Fed, The Creature from Jekyll Island.
The Fed still operates as a conspiracy today. That is, it plots in secret to do things that the public would view as harmful. If that’s not a conspiracy, what is?
Here’s the almost unbelievable truth that should get every member of Congress voting to hold some treason trials: Everyone involved in this massive paper conspiracy knows exactly what he or she is doing.
John Maynard Keynes, the British economist who is widely regarded as the father of government intervention in the marketplace, admitted this truth about fiat money creation many years ago. He said: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
Keynes also said that “not one person in a million” would understand the process. That helps explain why our government has been able to get away with it for almost 100 years.
Just how vast is this paper conspiracy? In the past four years, the Federal Reserve has created $16 trillion to $23 trillion in new fiat money. We don’t know exactly how much, and we can’t be sure where every penny has gone, because the Federal Reserve won’t tell us. It operates in secret. And it has flatly refused to share any of this information with Congress.
That’s right. Our elected Senators and Representatives — the people who are supposed to represent us in Washington — are as much in the dark about this as we are. But whatever the amount, it’s a lot of money, folks. More than we owe on the national debt, in fact.
And virtually all of it has gone to the very people and institutions that created our financial crisis in the first place!
Normally, I don’t look to Jon Stewart of The Daily Show for razor-sharp analysis of what our leaders are doing. He is not exactly the staunchest defender of the U.S. Constitution you can find on TV. He’s a comedian, for crying out loud. That’s why his program is broadcast on Comedy Central.
But I’ve got to tell you, the guy knows how to rant. And he did one heck of a job a few days ago on the Federal Reserve bailout of the big banks. Click here to watch it.
In his diatribe, Stewart refers to the Federal government as “the world’s dumbest loan shark.” Why else, he wonders, would they lend $7.7 trillion to our biggest banks for next to nothing (what else can you call a 0.01 percent interest rate?) — and then pay the same institutions more than 2 percent to lend the money back to them?
I wish we were talking about just $7.7 trillion and that U.S. banks and other financial institutions were the only ones getting the fiat money. At least that way, almost all of that newly created currency would be sloshing around our shores.
But the situation is far worse than Stewart described. The Federal Reserve has joined a cabal of its fellow central bankers to paper over the current crisis in Europe.
Their solution to the crises caused by printing too much fiat money is to… print more fiat money. This is akin to the Democrats’ solution to our growing financial crisis here at home: Let’s borrow our way out of debt.
How much more fiat money are we talking about? No one knows. But of one thing you can be certain: No matter how much fiat currency comes flowing out of the tap, it won’t be enough. Like every estimate for a government project I’ve ever seen, the final numbers will be many times higher than the ones they first give us.
Where is the leadership on the right that’s denouncing this extremely dangerous game? Well, actually, there is one person who is speaking out loudly, boldly and clearly: my favorite Texas Republican, Ron Paul.
“This will flood world markets with more dollars and will soon mean rising prices for every American at the grocery store,” Paul warned. “This extra liquidity will temporarily ease the cash crunch for irresponsible bankers all over the world, but in the long run it will make the situation much worse for consumers all over the world.”
Yes. Keynes said, “In the long run, we’re all dead.” That’s what the banking and government elites are counting on.
Paul also said: “Make no mistake — this is not capitalism and this is not how a free market operates.” No, it’s the most odious kind of crony capitalism: planned in secret among our self-appointed rulers in the White House, Congress, and at the Federal Reserve.
Forgive another shameless plug for Paul, but he has also proposed the only practical solution to this conspiracy to bankrupt us: Audit the Fed. And then shut it down.
Until then, keep some powder dry. You’re going to need it.
Chip Wood was the first news editor of The Review of the News and also wrote for American Opinion, our two predecessor publications. He is now the geopolitical editor of Personal Liberty Digest, where his Straight Talk column appears weekly. This article first appeared in PersonalLiberty.com and has been reprinted with permission.
