Friday, January 30, 2009

Hyperinflation anyone?


I got this chart from Glenn Beck and FoxNews. Don't believe Beck and Fox? Okay, the source is the Federal Reserve Bank, believe them? At any rate, the chart plots over time the amount of money we have out in the market at any one time. So, that being the case, it clearly shows one thing. An exorbitant increase in the amount of money we've been printing following the onset of the latest recession. We've never done this before. The chart goes back beyond the Great Depression. During that time, we were on the gold standard and couldn't print more money. This remained true throughout WWII, Vietnam, etc. It was only after the programs of the "Great Society" began to really cost a lot of money that Nixon removed us from the gold standard in 1971. So, look at the chart carefully. We began to print more money after 1971. Not a problem because there are all kinds of checks and balances to keep the whole thing balanced, right? Sure, as long as you don't just print money like crazy. That's what happened to Germany after WWI that caused their hyperinflation. So, what else does the chart show. It shows us that in 1971, we had about 50 billion dollars out there which over time increased to about 900 billion by 2007. Then we hit 2008 and the amount jumps to about 1.7 trillion dollars. That is almost doubling the amount of money on the market in just one, 1, uno, um, un, ane, een, eins, eyns, en, unu, aon (how many languages do I need to put it in to make the point) year. That's outrageous and dangerous. We need to reign in our own government. Thomas Jefferson put in the Declaration of Independence

"that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."

In addition, Jefferson also wrote in a letter to John Taylor in 1816, "I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale" which basically means that the government shouldn't establish a bank because that would be more dangerous than a standing army (which we also have) and that we should not spend money or have debt that needs to be paid by our posterity, our offspring, our future. So, what the government is doing now is endangering our ability to pursue life, liberty and happiness by buying banks (establishing them?) and by printing money frivolously and by mortgaging the future of our country and our children with trillion dollar debts all in the name of sparing ourselves a bit of discomfort and difficult times. This is not only wrong, but I submit it is immoral and should be vigorously defended against.

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