Tuesday night (3/14/23), PBS had a two-hour special on the Federal Reserve, and after two hours, I arrived at the following conclusions.
- The Fed is an absurdity, and most of it should not be in existence.
- Where in the Fed’s charter, does it give it permission to set “interest rates,” for America? The interest rate, as set by the Fed, is for rates between banks, not the commercial system of buying, selling, and loaning. Interest rates, should be set by contracting parties, and not set by anyone or any government. Poor risks would have high interest rates, as the parties are at risk. Low interest between parties where there is low risk.
- Nowhere in the entire two hours, did anyone mention the fact that inflation is caused by, as the dictionary defines inflation, as “An increase in the money supply.” Not even a hint; only that ‘prices go up,’ and the Fed is raising interest rates to stop it, which is part of its absurdity.
- No mention of where the increase in dollars originates, or that it is in any way the fault of the Fed.
- The entire two hours, were a mad scramble between various government agencies, presidents, congress, and the Fed, and it all amounts to a big, fat, nothing.
There Is No Inflation in The Game of Monopoly
Know why? Because there is no increase in the money supply in Monopoly! The money is dealt out at the beginning, and that’s it. You play, win or lose, with a stable amount of money between players, and the rents, and property prices, never change. We all played Monopoly as kids, and even now, isn’t it nice that we don’t have to contend with inflation while playing?
HOW DOES THE MONEY SUPPLY INCREASE?
The money supply is increased by the Fed, on orders from the Treasury Department. Why? To pay government bills and handouts, which were authorized by Congress, the President, or thousands of bureaucrats. Every federal government expenditure, in excess of the dollars it receives, contributes to the increase in money supply, or inflation.
WHY DO THEY DO THAT, AND CAN IT BE STOPPED?
Never, since the days of FDR, has any government of any party, including Trump, ever slowed the money supply from increasing. The current Biden Administration, has broken all records of ordering the Fed to print money, it is said, by about $10 trillion. We will never get any accurate figures on anything, because all governments lie, to stay in power. It is impossible to fire a federal employee, the largest employer in America. The result, is prices going up, inflation, or as a correct definition should be, “The increasing supply of dollars, is losing their value or purchasing power.” There was no mention of that, or Stott’s Law, which states that “The More of Anything There Is, the Less They Will Be Worth,” and this includes Model A Fords, water in the desert, and of course dollars.
Why have they done that? Obviously, to garner votes. Handouts and allowing voters to feed at the public treasury trough, causes them to vote for whoever promises to stop this bankrupting, silly, lying, absurd, promise of “reform,” cutting excess spending, cutting bureaucracy, etc. Republicans and Democrats, all promise to cut spending, reform the bureaucracy, and it’s always lies to get votes. This ‘reformation,’ always costs trillions in handouts. This has always happened, in all civilizations, and all of them have eventually caused their currencies to become worthless, bankrupting governments and their citizens. It’s so obvious, but no one has yet devised a way to stop it. Candidates and bureaucrats, always want to remain in, or gain public office, as it is a wonderful ego booster, not counting, free everything, such as huge pay which may last a lifetime, postage, travel, adulation, health care, and all that goes with that office. You can examine history, but it can’t be changed, and since this has being going on since man developed elections, numbers, and the alphabet, it will continue.
Alexander Hamilton started the first Federal Reserve, and it bankrupted the Continental dollar. Aaron Burr benefitted young America by killing Hamilton in a duel. Andrew Jackson, vetoed the second Federal Reserve, and the third one came into existence in 1913. The current Fed initially promised that a central bank would stop the then practice of various banks printing their own currencies, and concentrate it into one ‘dollar,’ which paper and coinage would be backed by gold and silver. If it had stopped there, (fat chance), and maybe if FDR hadn’t been elected to four terms, we might still be OK with nickel Cokes and Hershey bars, but FDR got the inflation train on the tracks, and it has only gained speed since then, and I am afraid it will eventually run off, and we will say goodbye to the American dream.
Before FDR was elected and began the inflation train, gold had been priced at $20.67 per ounce for a hundred years. He raised the price to $35, stealing millions from everyone, and today, it’s approaching $2,000.
The pre-WW II, $700 trucks, had much heavier body parts, and were far easier to fix, than current ones at $70,000. The pre-WW II Hershey bars and Cokes at a nickel, are the same now as then, and they cost, in inflated dollars, you know what. The six-bedroom home my parents bought for $3,300, at 1811 Kenyon St. N.W. in Washington D.C. in 1935, is the same home now, which would easily get a million, and it still is there and occupied by its current owner. The 40-acre farm, with a lovely two-story home and two barns, in Southern Maryland, 45 miles south of Washington D.C., which they purchased for $9500 in 1948, is still there, and probably could be sold for far in excess of two million dollars today. Tangible things often stay the same, except for their cost in decaying dollars, thanks to politicians, presidents, and the Federal Reserve. All you can do is PROECT YOURSELF, with tangible things such as gold and silver, which can’t be printed on paper, are beautiful, compact, not dependent on government, have no property taxes or insurance, and have been real money throughout all the bankrupted, failed, nations in history, who all basically did the same thing as the ‘swamp’ in D.C. has been doing since FDR in 1933, and shows no sign of ceasing to dig our economic graves.
Don Stott – don@coloradogold.com 1-970-249-4646