Conspiracy of Counterfeiters
by Patrick J. Buchanan: Obama's
Race-Based Spoils System
"Lenin is said
to have declared that the best way to destroy the Capitalist System
was to debauch the currency. By a continuing process of inflation,
governments can confiscate, secretly and unobserved, an important
part of the wealth of their citizens."
certainly right," John Maynard Keynes continued in his 1919 classic,
Economic Consequences of the Peace.
"There is no
subtler, no surer means of overturning the existing basis of society
than to debauch the currency. The process engages all the hidden
forces of economic law on the side of destruction, and does it in
a manner which not one man in a million is able to diagnose."
that terrible hatreds would be unleashed against "profiteers" who
enriched themselves through inflation as the middle class was wiped
out. And he pointed with alarm to Germany, where the mark had lost
most of its international value.
1923, the German currency was worthless, hauled about in wheelbarrows
to buy groceries. The middle class had been destroyed. German housewives
were prostituting themselves to feed their families. That same month,
Adolf Hitler attempted his Munich Beer Hall Putsch.
Today a coterie
of economists is prodding Federal Reserve Chairman Ben Bernanke
to induce inflation into the American economy.
prices, professor Kenneth Rogoff, former chief economist for the
International Monetary Fund, is pushing for an inflation rate of
5 to 6 percent while conceding that his proposal is rife with peril
and "we could end up with 200 percent inflation."
Krugman, Nobel Prize winner and columnist for The New York Times,
is pushing Bernanke in the same direction.
writes Krugman, should take the advice he gave Japan in 2000, when
he urged the Bank of Japan to stimulate the economy with "an announcement
that the bank was seeking moderate inflation, 'setting a target
in the 3-4 percent range for inflation, to be maintained for a number
And who inspired
Bernanke to urge Tokyo to inflate? Krugman modestly credits himself.
"Was Mr. Bernanke
on the right track? I think so – as well I should, since his paper
was partly based on my own earlier work."
is not optimistic about Bernanke's injecting the U.S. economy with
a sufficient dose of inflation.
Why is Ben
hesitant? Two words, says Krugman: "Rick Perry."
Bernanke has been intimidated by Perry's populist threat in Iowa
after his first day of campaigning:
"If this guy
(Bernanke) prints more money between now and the election, I don't
know what y'all would do to him in Iowa, but we would treat him
pretty ugly down in Texas. Printing more money to play politics
at this particular time in American history is almost treasonous."
Perry was indulging
in Texas hyperbole, and the press came down hard on him for language
unbefitting a presidential candidate.
Yet Perry has
raised a legitimate series of questions.
be done to high officials of the U.S. government who consciously
set out to dilute and destroy the savings and income of working
Americans? What should be done to those who have sworn an oath to
defend the Constitution and then steal the wealth of citizens by
secretly manipulating the value of the currency, the store of wealth
upon which those people depend?
inflation – debauching the currency, the systematic and secret theft
of the savings of citizens – a legitimate policy option for the
Federal Reserve? Has Congress authorized official thievery?
Who do these
economists think they are?
debt – and erodes savings. It is legalized counterfeiting, the deliberate
creation of money with nothing to back it up.
If a citizen
printed dollars bills, he would be tracked by the Secret Service,
prosecuted and imprisoned. Why, then, is the Fed's clandestine printing
of money with nothing to back it up a legitimate exercise and, according
to Krugman & Co., a desirable policy for Bernanke and the Fed?
such as Rogoff, Krugman and Bernanke know how to shelter their wealth
from the ravages of inflation – and even to get rich. But what about
widows whose husbands leave a nest egg of savings in cash and bonds?
What are they supposed to do as the value of their savings is wiped
out at 4, 5 or 6 percent a year – or whatever annual rate of ruin
the Rogoffs and the Krugmans decide upon?
This is not
only an economic issue but a moral issue.
inflate a currency is to steal the money citizens have earned and
saved and entrusted their government to protect. Any government
that betrays that trust and steals that wealth is not only unworthy
of support. It is worthy of being overthrown.
On this one,
as Keynes said, Lenin was right.
Perry and Ron
Paul deserve the nation's gratitude for putting this issue of the
unfettered power and the amorality of our unelected Federal Reserve
on the political docket.
J. Buchanan [send
him mail] is co-founder and editor of The
American Conservative. He is also the author of seven books,
the Right Went Wrong, and A
Republic Not An Empire. His latest book is Churchill,
Hitler, and the Unnecessary War. See his
© 2011 Creators Syndicate
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