10 June 2012

Money Is Power

The central bank is still up to its regular shenanigans.  Here’s the proof:

Now, however, is the first time in more than half a century that the average American is both earning less and worth less than four years earlier, at least after inflation is factored in. [Emphasis added.]

Inflation is a sure way to transfer wealth from the poor to wealthy.  It is a sure way to enslave all but the upper class.

How inflation works is pretty simple:  the central bank prints new money, expanding the currency base.  The question that the central bank has to answer, though, is:  to whom does the newly printed currency go?  The answer is simple:  the newly printed money goes to the friends of the central bank.  Now, because market participants are often ignorant and irrational, the market does not respond to the inflation right away.  It takes a while for the new money to circulate.  Thus, prices remain relatively low at the onset of each round of inflation, so that those who first receive the newly printed money are able to buy at prices that do not yet reflect the money expansion.  This causes the initial recipients of the inflated currency to demand more, thus raising the price level of goods throughout the economy.  There is a trickle-down effect from there, as sellers are the second-level recipients of inflated currency, then producers, and ultimately services.  Thus, the politically-connected wealthy are able to essentially steal resources by the virtue of having the inflated currency first, and buying more assets at lower prices.

Incidentally, this is why Mayer Rothschild said (via Hawaiian Libertarian) "Give me control of a nation's money and I care not who makes the laws."  This is the truth.  Whoever controls the currency will have the adulation and brown-nosery of the wealthy, as they all desire to suckle at the teat of inflation.  Many of these men are corrupt, and will do what is necessary to curry favor from those who control the currency.  There then develops an elite club of leaders who constantly work together to enrich one another by controlling the currency.  This comes at the expense of the poor and middle class, who lack the connections to profit from defrauding the currency of its value.

This is why those in powerful hate men like Ron Paul.  Because Ron Paul opposes not just the Federal Reserve Bank of America, but of the entire concept of central banks, the men in power will hate him because he opposes the very foundation of their power.  Ultimately, the greatest defense of liberty is a free currency.  A free currency helps to keep men honest, and helps to prevent evil men from subtly defrauding other men out of their property, which is why those who are truly in power would love nothing more than to see Ron Paul and his followers dead.

In closing, simply note that the banks have given rather liberally to both Obama and Romney.  They are not so generous to Ron Paul.  This is because the banksters understand that there really is no difference between Romney and Obama:  both will allow the banksters to loot the people via the central bank.  Both will preserve the status quo of fraud and deceit.  Both will continue to allow the ruling elite to chip away at citizens’ wealth through the lever of inflation.


  1. Too bad rand paul sold out:

  2. This is precisely why I am fascinated with Bitcoin. Digital currency controlled by the people... Bitcoin is primarily used for illegal purposes but I could see people boycotting their government money for digital currency (bitcoin or some other currency of the future), especially those who fall into the buy gold/silver hype. In New York several stores take bitcoin as a form of payment.

  3. @Anon.1- I've heard some people try to rationalize this as pragmatism, but I don't buy it. Right now I'm taking a wait and see approach.

    @Anon.2- BitCoin also fascinates me, though I'm worried about the government trying to shut it down. The government doesn't generally like competition as it tends to keep them honest.