James Madison: “History proves that the money changers have used every form of abuse, intrigue, deceit, and violent means possible, to maintain their control over government, by controlling money and its issuance.”
Ernest Hemingway: “The first panacea of a mismanaged nation is inflation of the currency. The second is war. Both bring a temporary (and false) prosperity; both bring a permanent ruin. Both are the refuge of political and economic opportunists.”
Ludwig Von Mises: “Government is the only agency, which can take a useful commodity like paper, slap some ink on it, and make it totally worthless.”
Voltaire: “Paper money eventually returns to its intrinsic value…zero.”
Congressman Jerry Voorhis: “The banks…commercial banks and the Federal Reserve…create all the money of this nation, and its people pay interest on every dollar of that newly created money. This means that private banks exercise unconstitutionally, immorally, and ridiculously, the power to tax the people. For every newly created dollar, dilutes to some extent, the value of every other dollar already in circulation.”
Alan Greenspan: “The abandonment of the gold standard, made it possible for the welfare statists to use the banking system, as a means to an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no other safe store of value. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands as a protector of property rights.”
Enough quotes for now. The plain fact is that when you borrow money from a bank, don’t pay your credit card in full, or use any type of unsecured credit, the issuer of that credit, if it isn’t paid in full at the end of the billing period, you are adding to inflation. Banks and credit created out of thin air, and backed by nothing, simply adds to the money supply.
The large commercial banks, or for that matter any bank which doesn’t loan to you from their customers’ savings, is creating money out of thin air. A car loan or mortgage is backed by physical items backing the loans, and the loaner has protected itself by attaching a lien on that car or home.
In the D.C. ‘swamp,’ politicians vote for, and the president signs, volumes of bills requiring payments to those who benefit from those bills, and keeps the Senators and Congressmen or Women in office, bragging about ‘how much I have done for you.’ They have merely increased the deficit, increased inflation and taxed you.
Next to FDR, I believe Donald Trump has added more un-backed money into circulation, thereby causing inflation, than any other president I can think of, but maybe the reader of this can point out anther president who ballooned the money supply more than Trump. Trump’s tariffs are not being paid by those who supposedly are harmed by them, but by Americans, who pay for the tariffs, in increased dollar prices. Trump’s War, will add a half trillion dollars to the debt.
You are forced to pay for inflation, making you a victim of the D.C. swamp and its members. The provider of that inflation is your government and the Federal Reserve, which creates its own prosperity, with the printing press or computers.
Is there any other protection you can conceive of, other than home ownership, or gold and silver? All three go up in dollar value, as fast as the dollar value goes down, and you have no premiums to pay. It’s automatic!
-Don Stott don@coloradogold.com