Letter to the Editor

Expressing worry over Federal Reserve

Sunday, March 10, 2013

To the Editor:

Thomas Jefferson once proclaimed:

"If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."

The Federal Reserve is increasing the money supply substantially, resulting in a dramatic devaluation of the dollar.

According to Peter Schiff, CEO of Euro Pacific Capital, Inc., the Federal Reserve is creating a trillion new dollars every year.

In the article, "The Trillion Dollar Trick," Schiff stated, "The Fed expands its balance sheet by buying government bonds from private banks. In exchange for these securities, the Fed credits the banks with funds it creates out of thin air. The banks then pass the funds to the general public through loans. But it's important to realize that the Fed does not have any money to actually buy the bonds in the first place. The funds are created by a fed computer."

The federal government has a policy of constant devaluation of the dollar to subsidize special interest, fund wars and monetize the government debt, to make it seem as if the government is not in default.

The increase of fiat currency, instead of an increase in real resources, only means that a larger amount of dollars is chasing the same supply of goods, creating rising prices.

You can feel these rising numbers where the new government money is being spent, healthcare, war, lavish government salaries and education.

Inflation of the money supply is a hidden tax on the public, but it's a gem for the banks, the government, subsidized industries, and government contractors.

It's a gem because when this money is created and handed out to government recipients, the prices on goods in the market have not yet adjusted to offset the new supply of money.

On July 25, 2012, the House voted 327-98, on legislation to subject the Federal Reserve to an audit, the same Federal Reserve that has unlimited power to print money. And the same Federal Reserve that is the culprit of the business cycle.

Of course, this overwhelmingly positive vote on a bill that would place a check on government power was nothing but a political trick.

Senate Majority Leader Harry Reid vowed that the Audit the Fed legislation would not be brought to a vote in the Senate, so the Congressional neocons and liberals could vote for the bill, making it appear they were voting in favor of the people's will, while knowing full well that the legislation would never truly become law.

A strong dollar will allow the American worker to purchase land (the basis of all economic security), factories and businesses.

With a weak dollar, an American worker can work from can't see in the morning to can't see at night and have nothing to show for it.

You see this today everywhere you look.

Clarence Leatherbury,