in World News Inflation: Government’s Insidious Form of Theft
By George Ford Smith
No one today talks about the death penalty for debasing gold or silver coins as established by section 19 of the Coinage Act of 1792, nor do they usually bring up Article 1, Section 10 of the Constitution, which authorizes only “gold and silver Coin a Tender in Payment of Debts.” Instead, we’ve come so far as to establish a “gold standard” for the monetary policy of inflating currency at roughly two percent per annum to be carried out solely by the Federal Open Market Committee of the Federal Reserve System.
When we glance between the lines, we see that the Fed holds a monopoly of money creation. And since the government no longer regards gold or silver as money but instead issues paper bills or their electronic equivalent (not as substitutes for real money but as money itself), the United States is in the strange position of being a counterfeiter, and a monopoly counterfeiter at that.
Without the enforced promise of note redemption, the currency exposes itself to multiplication without restraint. An economy needs a generally accepted medium of exchange, and one would arise naturally over the course of trade. A state, given its nature as a predatory institution since it funds itself by force, needs a monetary unit it controls exclusively, with the ability to increase its quantity quickly to deal with its perpetual crises.
Debasement Reaches Fruition
One of the great “achievements” of modern states is their ability to hide the debasement of their currency. Before the printing press made its debut, tyrants had to debase actual money by diluting the precious metal content or falsifying the imprint of a coin. Modern technology, along with elaborate legerdemain, has hidden the counterfeiting process from the public. The rest are bought off or ignored.
We’ve heard a lot about the pharmaceutical industry’s corruption of public health. The Fed is in the same league, having virtually bought the economics profession.
The Fed employs hundreds of PhD economists and a host of researchers and support staff. It also
doles out millions of dollars in contracts to economists for consulting assignments, papers, presentations, workshops, and that plum gig known as a “visiting scholarship.” . . .
Being on the Fed payroll isn’t just about the money, either. A relationship with the Fed carries prestige; invitations to Fed conferences and offers of visiting scholarships with the bank signal a rising star or an economist who has arrived.
Fortunately, not everyone is an economist in that sense.
One of the appeals of cryptocurrency is the limit on the number of monetary units. Not only is inflation impossible, but deflation, a gradual lowering of prices, naturally results from market productivity. The theory that a growing economy needs a constant influx of dollars was blown up by the unprecedented prosperity of the late nineteenth century in which prices dropped. In today’s debt-based economies, “deflation” is a dirty word, the “it” to be avoided at all costs lest the house of cards collapses.
The Fed in a Fight for Its Life
Today, the Fed is in the unenviable position of dealing with government’s latest war on the economy during the orchestrated covid vax onslaught and its sorry attempt to rebuild the economy by means of a Woke agenda that places ideology above everything.