Thieves are near. What to do? Close your eyes. Tighter. Stop listening for footsteps – that will just make you nervous. Turn up the rap. Hide. There, feel better?
Thieves? Yes, you’ve been robbed.
If you finally open your eyes, don’t check your wallet. It will have a lot less than it did before. Let’s just not talk about that. Let’s talk about sports. Anything besides the reality of insane inflationary spending and the devaluation of our currency by creating vast amounts of money out of thin air to pay for reckless spending all over the globe, for purposes completely unauthorized by the US Constitution.
In the past year your money has lost 10% of its value – a conservative estimate. If you’re getting 5% interest on your life’s savings, you don’t have 5% more – you have 5% less during this past year. And that’s based on the US Dollar Index, which compares the dollar to the a batch of other world currencies – all of which are subject to inflationary pressures themselves as their central banks print up loads of paper money making their currencies worth less each year.
The printing of fiat money and the associated inflationary expansion of the money supply is a hidden tax, an act of robbery, in which your government and our generous central banking system reduces the value of what you earn and save in order to finance their own agendas.
The talking heads of Wall Street keep taking about the strength of the economy, the wisdom of stocks, the joy of the status quo, without letting you know that you’re being robbed. Made 10% in stocks this year? You may not even have broken even. And if China and the Arab world grows weary of being on the losing end of the dollar, the sell-off of US treasuries could drive the dollar down rapidly and fiercely, disrupting far more than your plans for a European vacation. This is the time to be frugal, to build a food storage and emergency preparedness program for your family, and to consider investments that won’t be sure to lose 20% or more of their value in the next couple of years. Naturally, I’m speaking to those of you in the US. If you’re in Canada, for example, congratulations on the resurgence of the Loonie!
What we are experiencing in the US now is not new. We are on the brink of what has happened many times. It happened in Rome. It happens all over the world. When a government assumes the power to create money without anything backing the money, when nothing but printing presses are needed to create and fund the dreams of politicians and bankers, when nothing but hope and trust is behind the printed bill, then the devaluation of that currency is inevitable, and the toppling of markets and even governments is sure to follow. It may take decades, but the end game can be swift and terrible. Rome, Weimar, Zimbabwe, even Kirtland – there are lessons to be learned.
Our Founding Fathers learned that lesson. They knew history. That’s why gold and silver were specifically spelled out as the basis for money. Congress had power not to print money, but to “coin” it, and no state would have power “to make anything but gold and silver coin a tender in payment of debts.” Indeed, the details of the Constitutional Convention show that the Founding Fathers were ardent opponents of paper money. If we had stuck with that, we couldn’t just print up money today, and all the advances in technology and productivity each year would make our dollar progressively more valuable, not less. Ah, what dreamers those men were! But they had their eyes wide open when it came to the danger of thieves. They did all they could to limit the size of government that we might be free, and free from the thieves that naturally gravitate to offices of power.
The monopoly power to print money backed by nothing has got to be the most corrupting power of all. Who can resist that kind of fun? No thief can, that’s for sure.