Fedís Real Agenda: Wealth Among the Ruins?
Campaign for a Sound
by Charles Goyette: Newton
If they only
make us poor enough, then well all be better off
they can only make the currency that we work for, earn, save, and
buy things with, worth a lot less
then well be better
make a lot of sense, does it?
the kind of logic one would expect from those who believe we can
spend our way to prosperity.
bequeathed us a mountain of unpayable debt. The logic of trying
to create prosperity by destroying the value of the money will bestow
on us a worthless currency.
I spoke with
Congressman Ron Paul, chairman of the Domestic Monetary Policy subcommittee
shortly after the Fed announced its new initiative, Quantitative
Easing IV, last month. In the context of the Fiscal Cliff debate,
Dr. Paul pointed out that the Feds monetary policies are enablers
of congressional profligacy.
important observation. With QE IV, the Fed will purchase $45 billion
of long-term U.S. Treasury issues a month. Couple that with QE III,
in which the Fed is buying $40 billion a month in mortgage securities.
Altogether the Fed is buying $85 billion a month, over $1 trillion
a year in debt instruments.
amount equal to the annual national deficit.
The Fed is
funding the entire national deficit with
Just Creates Out of Thin Air!
can run trillion-dollar deficits and the Fed can cover it all by
just running the printing presses in the basement that morning,
why should Congress do anything different?
All the Fed
asks in return is that it be protected from bothersome audits. It
doesnt want anyone peeking behind its curtains. The Congress
agrees, and the Fed goes about its monetary madness.
and the Fed have become dangerously destructive co-dependents.
With the announcement
that its greeting the new year with yet another exercise in
money-printing, QE IV, the Fed said in effect that QE I, QE II and
QE III have failed to produce the result we expected, so lets
do it some more.
if they pay any attention to these things at all, trust that the
Feds intentions with these policies are straight-forward
that they are derived from its dual mandate of maximum employment
and stable prices.
the conventional view, the Fed is merely holding interest rates
down, making borrowing affordable (too bad for savers) in hopes
that business will borrow and grow and hire and all will be well.
But the Fed
has been all about this zero interest rate policy now for four full
years. It first announced a Fed Funds rate target of zero to 0.25
percent in December 2008.
And now, after
four disappointing years of the interest rate policy that had such
a spectacular record of failure in Japan, and after four years of
serial monetary-easing initiatives, the Fed is committing to even
more in 2013 and beyond.
In other words,
the Fed is doing the same thing over and over and expecting different
results. Is it really that insane?
Feds real objective is not what is widely believed. After
all, four years is probably enough for even the most ideological
Keynesians to have gotten the idea that its QE produces only
But still it
persists, suggesting that it has another objective. If zero interest
rates arent enough to make business boom
in printing press money isnt enough to spur a recovery
there is only one other possible objective.
real policy is to destroy the
purchasing power of the dollar.
Intentionally. By design.
Why? The Feds
policy-makers must believe that, if only its policies can make the
currency weak enough, America can export its way to recovery. We
have only to decimate the dollars purchasing power, and the
rest of the world will hasten to buy our dirt-cheap products as
fast as we can make them.
enough economics to begin with, because it means that everything
Americans buy from overseas little insignificant things like
food and energy and the million-and-one other things we value that
depend on products and resources from around the world will
cost much more.
Keep the destruction
of the currencys purchasing up long enough and, as former
Reagan Treasury official Paul Craig Roberts said, hard-pressed
Americans will go to Wal-Mart and think they have walked into Neiman
the value of the currency is even worse economics when countries
all over the world decide to embark on the same policy. The U.S.
Federal Reserve is not the only temple of monetary magic where one
finds these destructive ideas and fantasies promising more prosperity
by making the people poor. Other central banks are charting
the same course, actively devaluing their currencies for the same
when all the worlds currencies are in a race to the bottom,
they are all likely to get there.
For your Freedom
from Campaign for a
Sound Dollar with the author's permission.
© 2013 Campaign
for a Sound Dollar
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