Mercy! Mercy! That Dang Nabed PERCY!

Stop Printing all that Money!

Stop Printing all that Money!

The Government (Federal Reserve) can skim money off the Nation's overall worth, by simply printing more. If you think about it and I have mentioned this before, the Government can raise significant amounts of cash by doing the following things…..Raise Taxes, borrow money, charge higher fees on services, print more currency or sell gold.

In order to finance the various stimulus packages, the money has come from all these sources and the most insidious is through the unrestrained printing of currency. There is only so much value in this country and printing more money simply dilutes the value of what is already in the pot. It‘s a form of taxation that touches everyone. Many citizens are screaming for a flat tax but we don’t really need one. The Federal Reserve simply ratchets up the printing presses and voila… we have the redistribution the President is talking about.

In the past year the value of everything Americans’ own has been devalued by about ten percent. This has gone underreported because the Bureau of Labor Statistics (BLS) has selectively used criteria to make the numbers show what the government wants. By eliminating criteria that show the true scope of the problem (fuel and food) they have been able to marginalize it on paper. Gold has shot up in value as a consequence to show the true scope of inflation while the value of most investments, property and earnings have been stagnant or declined. Don’t look at how much you have in the bank….look at how much it will purchase. Look at what your home is worth today as opposed to what it was worth a year ago. Don’t look to the BLS to define inflation… look at how much it cost to buy an ounce of gold a year ago and what it costs today... or better yet at the bad news on the gas pump or what you pay for that cart of groceries.

Finally a group of congressmen are telling Mr. Bernake to stop printing all that currency! This has never happened before and I am sure the Federal Reserve is not taking the matter lightly because if they don’t begin to show some restraint, legislation will ultimately be enacted that will seriously change the way they do business. For openers somebody is going to decide it’s time they were audited like everybody else. They certainly don’t want the full extent of their monetary machinations to be aired in public.. Just imagine what a disclosure of where the Nation’s gold has gone over last twenty years would do to public confidence. Now that would be a real eye opener. Ron Paul seems to be the only one tugging on that thread but nobody seems to be listening.

In a way I sympathize with the position the Fed is in. If the economy tanks, they will certainly be enjoined in the blame. Never mind that the executive and legislative branches are largely responsible for the deplorable state in which we find ourselves. I can hear the Chairman now speaking to the President….

“You need more money? No problem “boss“, why I’ll just print another installment on what's already out there.”

This tool is being abused on a huge scale and while it might be politically expedient, it’s costing Americans a huge chunk of their actual net worth. Who needs taxes when you can rake ten percent off the top and use it to pay for social programs that are fraught with corruption, waste and unintended consequences? When is the government going to realize that the answer is not stimulating a dead horse but bringing spending and revenues into alignment?