The Flank the Left Has on America

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   “Inflation is often thought to be the result of excessive money creation – too many dollars chasing too few goods. While in principle this is true, in practice there can be a lot of leeway, so long as trust and the monetary authority’s ability to keep things under control remains high.”  - Federal Reserve Bank of Cleveland.

   According to the Federal Reserve, inflation is only (though often) “…thought to be the result of excessive money creation – too many dollars chasing too few goods.” To justify the Federal Reserve’s existence, they claim our need to “trust” them to “keep things under control.” Yet the turmoil this central bank has consistently engineered has led to financial chaos and the claim we must trust the Fed who begat the chaos in the first place. 

   Modern economists - suffering under the mesmerizing effect of the pedophile, John Maynard Keynes,  treat economics as subject to “conventions” as opposed to “the laws of human action.” The laws of supply and demand are laws of human action. They are like gravity in the physical realm… No amount of human persuasion can change them. 

   Conventions, in contrast, are the result of societal/individual creation. Choosing to wear a tie and suit… driving on the right side of the road versus the left side (as in England) … eating with chopsticks as opposed to forks, knives and spoons… These are all conventions, subject to change through societal or individual pressure/opinion. 

   In contrast, the Laws of human action cannot be changed. 

   Inflation is nothing less than tampering with the laws of Human Action. This Administration and its fellow-travelers, are passing out checks like gumballs while damaging the productivity of the economy.  Normally, as Demand increases, ceteris paribus , prices rise. That’s basic economics.

   Inflation is easily explained when we understand that by increasing the money supply, prices will rise. Here’s the key: Money is an instrument for EXPRESSING DEMAND!  So, if the money is increased, demand increases and if demand increases, prices rise. 

   As the Fed recognized “in principle,” inflation is more and more money chasing fewer and fewer goods.” But, the Fed offers excuses, accommodating policies which sound humanitarian yet violate laws of human action. Note the words of renowned free market economist, Dr. Hans Sennholz: 

   “The role of money differs fundamentally in… two social orders. The system that governs least leaves the selection of a medium of exchange as well as all other economic activity to the choice and discretion of its people. Money that springs from voluntary exchanges is left free and unhampered. In a transfer society, money becomes a tool of political force in economic redistribution, a tool freely wielded by government, the transfer agency. As the quantity of government money multiplies, its purchasing power must shrink and the price of goods must rise … The public commonly calls these consequences ‘inflation.’ Ours is the age of inflation.”

   The “Continental dollar” was a desperate need for funds by the continental government during the War of Independence. Again, a central authority, not understanding “money” as a precious commodity, undertook a desperate drive for funding a war. Congress authorized a massive production of paper money. Inflation then increased to such levels that the expression “Not worth a Continental” became common. George Washington, Commander of the Continental Army, never received a salary but did request reimbursement for expenses. Historians, always critical and equally ignorant of sound economics, condemn him for a requested reimbursement of $15,000 for one night’s hotel. Those same historians show (nothing surprising here) almost complete ignorance concerning inflation. In short, Washington was charged inflationary prices. This author is amazed he would accept payment in Continental dollars to begin with! 

   Likewise, China was convinced by its Rothschild banking leadership to undertake inflationary policies under the guise of the “New Economics” of John Maynard Keynes. Prof. Ebeling of the Citadel writes of that inflation:

   "The value of China’s paper money on the foreign-exchange market reflected this huge depreciation of the currency. In June 1937, 3.41 yuan traded for one U.S. dollar. By May 1949, one dollar traded for 23,280,000 yuan."

   The result? China fell to communism in 1949. The massive inflation undermined popular support for the government.  Marxism thrives on inflation, as discontent grows, Marxists depend upon the desperation of the masses to catapult them into power. That is our exposed flank today! 

   Inflation is the politics of fraud. As the money supply becomes debauched, people’s savings and the buying power of each dollar is diminished. People are left with worthless paper. Power mongers, like the current Administration, seize POWER, crippling a dependent servile people. Solution? We must end central banking control and put an end to the debauched desire to gratify desires in a flood of paper, dubbed “money.” 

   Contact the author:  •  262-597-2030.

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