Monday, August 03, 2009

Monetary Freedom

I don't think a lot of people understand money. It never ceases to amaze me how many people know so little about the stuff they jealously stuff into their wallets and pockets. Most don't understand how it's value is modified and how that directly affects your monetary freedom. I have a few minutes, and I haven't blogged in a while, so I thought I'd drop a few lines about how Liberty relates to money.

Firstly, money is simply supposed to be a measure of the value of goods and services. Any attempt to modify it will result in a change in the relative value of the goods and services it measures. With a steady currency, the value of items don't change. There is no increase in the price of goods and services due to inflation. Prices are stable. The price you paid last week will be the same as this week, varying only with the laws of supply and demand.

When the currency is modified, inflation can occur. For example, before 1913, there was no such thing as inflation in the USA. After adopting the popular british socialist idea at that time of a floating currency, with control of the currency given to a central bank, the USA had it's first experience with inflation.

Prior to Federal Reserve, the private central bank which now con trolls the value of our currency, the USA used gold, silver and platinum as money. The paper bills people carried were certificates that could be exchanged for a set weight of one of these metals. The intrinsic value of these metals has been steady for several thousand years, so it was a very stable form of money.

When we set a price for a good or a service, or when we purchase something for a certain price, we should be able to expect that no one can come and change that price. Devaluing our money is an attack on our monetary freedom. The effect of increasing the amount of dollars in circulation is the devaluation of the money. This is exactly what we're allowing Federal Reserve to do.

Federal Reserve pumps out money to appease people by giving them more money. The people, glad to have more income to meet their needs, don't realize that by allowing Federal Reserve to make more money that it causes the money they have to be worth less, meaning the money will buy less.

This isn't a new trick. In Roman times, tax collectors and government agents would routinely shave the gold and silver coins they used and use the shavings to make new coins. Failing to make a standard weight per coin made this easier. The people were forced to use the coin, no matter the weight, by the Roman government. Inflation and mistrust of the currency helped bring the empire down.

The 2 previous contracts our nation made with private banks didn't last very long, and ended very badly. The central banks, in an attempt to keep control of the money supply, threatened to starve people to death if our government failed to renew their contract. People did suffer, but it was no where near as bad as the threats. Federal Reserve's deal was far sweeter than that, though. Federal Reserve was given an open-ended deal... and no charter or contract to renew. It will be far harder to get rid of Federal Reserve's tentacles into government. It has been allowed to control our money for far too long.

But it is possible to end our deal with Federal Reserve. In order to restore our monetary freedom, we MUST declare any contract with Federal Reserve ended. We have to return to a stable form of money. This is the only way to restore Liberty to our monetary system.

It's late and I'm tired. Feels good to blog again.

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1 Comments:

Blogger Don said...

Welcome back to the blogosphere. I hope your new job is going well.

I think one of the few members of Congress, if not the only one, that understands money, the economy, liberty, and how government polices affect all three is Congressman Ron Paul of Texas.

5:50 AM  

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