patrick.net

One of the two mandates of the Federal Reserve is to "stabilize prices". This seemingly innocuous endeavor has deeper implications than most people realize. It does, after all, just seem to be reasonable, and even desirable. But, in practicality, it is a vehicle for those in power to steal from you. Most people have at least a basic understanding of how inflation can benefit the government, and how the government, by printing money, can pay its debts and bill it to you, the taxpayer. This, in itself, is criminal and treasonous on its face. But there are two other less obvious mechanisms in place that are used against you, and are rarely exposed…

The first is deflation. The banks take your money not only by inflating (counterfeiting), but also by deflating. To make this point clear, imagine that you have been given the power to forge/print money (which is done today not with a printing press, but by simply adding "credits" into a computer account.) You would soon learn that you could "credit" yourself with as much money as you want, "lend" it all out, and quickly place most of the people around you in debt. At this point, which of the following options do you think will benefit you the most:

a) Keep printing money as fast as possible, devaluing the currency and causing your debtors to effectively owe you less (the money would be worth less).
b) Stop printing money, causing the value of the currency to rise (meaning it's harder to get, wages decrease, etc.), effectively causing your debtors to owe you MORE.

The term "money" simply describes a medium of exchange. What truly matters is value - which ultimately comes down to production. After all, if it takes you 1,000 hours to produce enough money to buy a new car, the actual amount of fiat currency you used to purchase it doesn't much matter. What matters is that you had to work 1,000 hours for that car.

And this leads directly to the following point…

The second is theft of standard of living. No one notices this. However, it is a powerful weapon that is used against you over the span of your entire life, and understanding it will leave you with a very bad taste in your mouth. It has to do with the idea of technological advancement. It is natural and clear that humans evolve technologies over time to improve their lives. As time passes, we find ways to produce goods and services more efficiently, which in turn makes them less expensive. Nearly everything that you buy should, over time, become cheaper. And hence, over time, your overall level of comfort, wealth, and quality of life (a.k.a. "standard of living") will improve.

Now, recall the honorable mandate of the money forgers to "keep prices stable". Since as mentioned above, in nearly all cases a free market will, over time, cause the real prices of goods and services to decrease such that the average person is able to acquire more of them for the same amount of money (or work), this provides a beautiful cover for those controlling the money supply to skim from the masses. Under the guise of providing price stability they are able to inflate the money supply at a rate that denies working and productive citizens the full fruit of their labor. By "keeping prices stable" what they've effectively done is simply raised the real cost that you must pay for services and goods that are trying to become cheaper. So what happened to the extra "money"? What happened to the extra "fruit" of the producers? It went to the money printers.

The end result is that your standard of living remains "stable" and does not improve. This happens in a way that is essentially invisible to the general population. If citizens were truly aware of the lives they really should be living right now, and who has taken it from them, there would be a revolution tomorrow.

There is no morally defensible position to the concepts of monetary inflation/deflation & "price stabilization".

End the Fed.