by John F. McManus, President
1. Over the past two years, the Federal Reserve has increased the money supply by approximately $1 trillion. Most of these freshly created dollars have been given to megabanks. The effect of such a huge infusion of money into the system will surely lower the value of the dollar and result in making it more costly (in dollars) to purchase goods and services. However, this certain consequence has not yet been felt because the banks have not yet inserted their share of the trillion into the system. The banks are now being asked by the Fed to delay doing so — probably until after the November election. The charge that the Fed plays a role in the election process is again shown to be accurate. In any case, the sinking value of the dollar will sink even more in time because of the Fed’s action.
2. In 1966, Alan Greenspan wrote an article entitled “Gold and Economic Freedom.” In it, he stated: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value…. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.” Asked during the decades that he led the Federal Reserve if he still believed what he had written in 1966, he responded, “Absolutely, but nobody wants to hear it.” His willingness to become a major player in the destruction of the dollar allowed him to become Fed Chairman. His career is a good example of the power a conspiracy has to persuade self-promoters to abandon principle and do its will.
3. Congress has just increased the ceiling on the national debt by $1.9 trillion. The federal government now has a green light to increase its admitted indebtedness to $14.3 trillion. The boost will enable the federal government to continue its unconscionable deficit spending without need for another increase in the ceiling until after the November elections. The vote in the House to allow this travesty was 217 to 212, with 37 Democrats joining every Republican in voting “No.” Practically all of the Republicans who now object to debt-ceiling increases routinely supported similar requests when a Republican occupied the White House. The size of this latest increase is estimated to be the equivalent of $6,000 for every resident of our nation.
4. Asked if the size of the planned deficit for the current fiscal year (a record-setting $1.6 trillion has been forecast), President Obama said, “It keeps me awake at night, thinking about all that red ink.” Yet, he is still trying to ram a healthcare program through Congress, he hasn’t proposed any real cuts in government spending, and he shows no signs of a lack of sleep.
5. The Senate recently approved another four-year term for Fed Chairman Ben Bernanke. Fully 30 senators voted against renominating Alan Greenspan’s successor, the largest “No” vote for any Fed Chairman in history. Bernanke’s recent 10-page statement included his plans to raise interest rates, a power that should never be in the hands of any person or group of persons. Where there is freedom, the marketplace will decide such matters. Ending the Fed’s stranglehold over the nation’s economic viability continues to be essential.