Wednesday, July 22, 2009

The Naked Currency Emperor

Every time the idiot seen below starts to yammer about what the Federal Reserve does and how important it is I start to scream at the TV set. However, he knows that he is stating nonsense and possesses the nervous demeanor that goes with that territory. I especially yell when emperor Ben talks price stability as a reason for the existence of the Federal Reserve.


Let examine this one question of price stability and that alone will be enough reason to abolish the Federal Reserve Board in lieu of a legal currency based on gold or silver that cannot be inflated like paper and now far worse, electronic money. First let us look at the price of gasoline. It soared to $4.50 a gallon last summer along with the supply of money. Then the supply of money collapsed when lenders quit lending. So due to economic law the dollars that remained circulating in the economy gained in value. That meant gasoline fell to less than a buck fifty a gallon since the few dollars still available for transactions were worth more due to their scarcity. So what does the Federal Reserve and the Treasury do? They start creating more currency and just give it away or loan it for zero percent interest. Economic law kicks in again to reflect the increased number of dollars artificially created then injected into the economy. The price of gasoline roars back up by forty percent. Currently the initial effects of this fiat stimulus dough are running out so the price of gasoline is declining once again and all this has happened just over the past year. How's a business fella supposed to price his goods and services with these kinds of wild cost fluctuations?

Now you understand why so many businesses are failing. Everyone is trying to figure out how much things should cost - using Federal Reserve notes of course. Unfortunately the value of these notes changes every day because emperor Ben dicks with the supply of his currency crack in our economy. This creates artificial demand for wealth, but not wealth itself. Wealth is created by workers like you and me doing a physical or mental processes that aides in the creation of goods and services that people either want or need to live as humans and not as animals in the forest. People like Ben and his bankster buddies the world over have merely devised a sneaky way to milk the people of the planet of their labor without these workers knowing it. The banksters don't actually aid in the production of any wealth because they are too busy stealing it from those that do create wealth...workers.


Blogger Tomás Estrada-Palma said...

Go away shill and quit pretending to be Fantomas. You sound foolish.

6:14 PM  

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