May 27 2006
Paper is Poverty…
“Paper is poverty…it is only the ghost of money, and not money itself.”
“If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”“Experience has proved to us that a dollar of silver disappears for every dollar of paper emitted.”
“The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals… it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted.”
“Private fortunes, in the present state of our circulation, are at the mercy of those self-created money lenders, and are prostrated by the floods of nominal money with which their avarice deluges us.”
“I now deny [the Federal Government's] power of making paper money or anything else a legal tender.”
–Thomas Jefferson
We can’t speak for all of you – but we were never taught any of the above in our expensive high schools and colleges. And like all real economics – (which ain’t “rocket science” as the “experts” would have you believe) — it’s beautiful & true in it’s simplicity. It also makes us wonder whether all along we were paying to be formally “un-educated.”
A brilliant observer, Jefferson clearly warns of the dangers ALWAYS related to a paper currency – especially that issued by a private bank. (Newsflash for those already not aware – the Federal Reserve is a consortium of private banks given special powers by Congress). As we like to say — the only integrity paper money has — is that it ultimately reverts to its true value – which is nothing more than the paper it is printed on. The Dollar is following suit to perfection by losing well over 90% of its purchasing power since…lo and behold — the creation of the Fed! The sad, pathetic thing is that the hard earned savings of every American are being stolen in the process.
The money supply in the US is currently being increased at a rate of about 8-10% annually. Remember — what money the Government doesn’t have to meet its “promises” – it simply creates out of thin air in conjunction with the Federal Reserve! If this rate of monetary expansion continues – simple math tells us that in 9 years, your dollar will lose around 50% of it’s purchasing power. Toss in massive amounts of looming un-funded social promises (Medicare, Medicaid, Social Security) – and billions of dollars in un-funded pension liabilities which the Federal Government may well have to bail out – and you tell us where you think the money supply, and the true value of the Dollar are headed!
Jefferson is still right – “Paper is poverty…”
