Time To End The Federal Reserve System For Failing To Maintain Price Stability or The Purchasing Power of The U.S. Dollar–End The Federal Reserve Banking Cartel For Currency Debasement!–Videos

Posted on February 13, 2011. Filed under: Banking, Blogroll, College, Communications, Computers, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, Money, People, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Resources, Taxes, Technology, Transportation, Video, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , |

http://www.aier.org/research/briefs/1826-the-long-goodbye-the-declining-purchasing-power-of-the-dollar

Behold What The Fed Hath Wrought!

“…The chart pretty much says it all. The incessant, relentless increase in the money supply by the central bank has paralleled the rise in the CPI. With very few exceptions, notably the years 1982-1985 under the Reagan administration when the U. S. economy was coming out of the stagflation brought on by the Carter administration’s dubious policies and the attempt to bring inflation under some sort of control, and then the bursting of the stock bubble in 2000, the central bank has embarked on a systematic expansion of the money supply that has decimated the value of the U. S. Dollar.

For the benefit of those who might be a bit uncertain as to the cause/effect relationship between the money supply and prices think of it this way. The more dollars that the Fed creates, the more dollars there are chasing the same amount of goods. For example – if there are 5000 dollars in circulation chasing a basket of goods and the Fed increases the money supply resulting in another 5000 dollars being created, there are now 10,000 dollars chasing the same amount of goods. The result is that we now have twice the number of dollars competing for the same amount of goods. The effective result is that it now takes 2 dollars to buy the same number of goods that 1 dollar previously was able to purchase prior to the money supply being increased. This is properly termed “inflation.’ It is not so much that prices are going up as it is that the value of the dollar is going down because there are more of them competing for the same number of goods. In real life of course, the number of items in the basket of goods would be increasing as the economy grows. The problem is no economy in the world can increase the production of goods anywhere near the rate at which the central bank can expand the money supply. The result should now be evident – the increase in the money supply at the near parabolic rate as evidenced on the graph MUST of necessity erode the value of the dollar and usher in further inflationary pressures. More dollars = higher prices.

In other words, the expression used by Alan Greenspan in his speech quoted at the beginning of this article:

As recently as a decade ago, central bankers, having witnessed more than a half-century of chronic inflation, appeared to confirm that a fiat currency was inherently subject to excess.”

That is an understatement of cosmic proportions. If we are to believe the change in tone coming from the Fed these last few weeks as signaled by both Alan Greenspan and Fed Governor Bernanke, the incessant flood of dollars rolling off of government printing presses has only just begun. …”

http://www.gold-eagle.com/editorials_04/norcini080604.html

 http://www.mebanefaber.com/2010/11/17/the-dollar-and-purchasing-power/ 

END THE FED!

 

End The Fed!

 

Ben Bernanke was Wrong

 

Bernanke was wrong while Peter Schiff was right

 

End The Fed! – Why the Federal Reserve Must Be Abolished! Share with your friends

 

Paul Ryan: No sugar high economics; need to restore foundations for growth

 

Paul Ryan on the need to focus on price stability

 

Charlie Rose – Rep. Paul Ryan, Wisconsin (R)

 

Bernanke’s Opening Remarks to Paul Ryan

 

FED rates manipulation – Paul Ryan Questions Bernanke

 

Rep. Campbell Questions Chairman Bernanke On QE2

 

House Budget Committee Hearing

 

Congressman Woodall questions Federal Reserve Chairman Bernanke

 

Bernanke: Broader base, lower rates are key to pro-growth tax reform

 

Peter Schiff comments on Ben Bernanke Testimony [onlyhedge.com].mp4

 

Bernanke Threatens Congress

 

Bernanke Speaks on Economy (Part 1) – Bloomberg

 

Bernanke Speaks on Economy (Part 2) – Bloomberg

 

Quantitative Easing Explained

 

Ron Paul: Bernanke Deliberately Destroying Dollar

 

End the Fed | Ron Paul 

 

Background Articles and Videos

 

Tracing the Fed’s Vital Role in the Decline of the US Dollar

“…The purchasing power of a one dollar bill has plummeted more than 95% since the Federal Reserve first began printing its legal tender in 1914. Although the dollar’s epic decline began glacially, it has gathered luge-like momentum.

The greenback’s value dropped only 50% during the first 33 years of the Fed’s stewardship – i.e. between 1913 and 1946. But the 1946 dollar would lose half its value in just 24 years, while the 1970 dollar would lose half its value in just nine years. The rate of decay slowed somewhat during the Volcker years, as the 1979 dollar did not lose half its value until 14 years later.

Nevertheless, the dollar’s progression toward zero since 1913 feels more geometric than arithmetic.

In 1914, the year the Federal Reserve began conjuring dollar bills into existence, 700,000 shimmering new $10 Indian Head Gold Eagles rolled out of the Philadelphia, San Francisco and Denver Mints. Once in the hands of a working stiff, each $10 coin would buy $10 worth of goods and services. Likewise, the Fed’s crisp, new McKinley $10 bill would also buy $10 worth of goods and services.

Over the ensuing 98 years, a succession of Federal Reserve Chairmen labored to “preserve” the purchasing power of their McKinleys, Washingtons and Lincolns. The Gold Eagles had to take care of themselves. The results are in; the unprotected Gold Eagles flourished, while the “protected” Mckinleys withered. Based on its metal content, a 1914 $10 Indian Head Gold Eagle is worth $643.45. A 1914 $10 bill is still worth ten dollars. …”

http://vinceseconomicblog.wordpress.com/2011/02/04/tracing-the-feds-vital-role-in-the-decline-of-the-us-dollar/

Edwin Vieira, Jr. on the Fed’s Transfer of Wealth

 

Zeitgeist Addendum

 

Related Posts On Pronk Palisades

Ron Paul CPAC 2011 Speech–Videos

Ron Paul–Perpetual War–Videos

Read Full Post | Make a Comment ( None so far )

Liked it here?
Why not try sites on the blogroll...