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Thursday, July 09, 2009

Ron Paul and End The Fed

A well written letter by Ron Paul that was also posted by Glenn Beck. Read it for a clearer understanding of how the Federal Reserve is destroying the dollar. As if knowing that it takes $22 to buy what a person could get with $1 in 1913 isn't enough to realize how ridiculous this is... For those who don't know history, the value of currency has never eroded over time consistently and reliably. That did not happen to the US until the Federal Reserve [the central bank] was created. Ever wondered why they don't have those "this is how much milk was in ____" cards going back beyond 1913? It's because milk would go up one year, down for a few, then up a bit, and back down, and if you looked it it over 50 years the price of milk stayed roughly the same. Now, with the federal reserve you can be assured that your savings will be rendered useless over time, and "rich" families of today will have poor descendants in the future. A million dollars was worth 22 times in 1913 what it is worth today. Even a millionaire family of 1913 isn't set today. Just think about that 401k (if you have one) and what it will be worth as the dollar continues to decline at an even faster rate than it has since 1913? How can I be sure of this? It's a certainty because the Federal Reserve has doubled the supply of currency in the last year. That means the dollar will likely be worth 50% of what it was as soon as all that currency makes it out into the normal money supply, thus house prices will seem to rebound as the dollar is further destroyed. Who would say that an annual 22% inflation rate is a good thing? On average that is what the federal reserve has given us. $22 dollars today buys what $1 bought in 1913. That's a loss of 2,100% in less than 100 years. 2008-1913 = 95yrs. 2100%/95yrs = 22.105% per year. Still fooled by the governments reports of 1%, 5%, and 11% (as a high end) inflation for a year? That is a number easily manipulated. In many cases it means as a rate higher than the year before, so 2% could mean it rose 2% more than the previous year, not an actual dollar loss of 2%, but rather 2% worse than the previous year. The government is great at putting spin on things to make them sound better. Why do you think they refer to it as inflation instead of deflation? In reality it is the deflation of the dollar. What is it the inflation of? Inflation just sounds good - like filling a balloon. Kids know what inflating a balloon is - it just sounds like fun! But inflation of the market, thus deflating the value of the dollar is not a good thing. The only thing government is good at is putting lipstick on a pig and convincing us all we need the pig in our living rooms. They are *very* good at it. They have nearly 50% of the nation convinced they can tax the rich and support the poor. It's not possible, nor plausible, but then cartoonists and government are very good at getting people to accept the plausible impossible, just ask Disney, Carl Marx, Adolph Hitler, and Joseph Stalin to name a few. At least Disney was only selling some entertainment - I mean, really, an elephant fly? But then a few too many people have taken his "Dream a dream and follow your heart" concept a bit too far.