Economics experts tell us that 2% inflation is optimum. Often they say it as if no explanation is needed; other times they spout off the terms and instruments of money manipulation, as though they are self-explanatory.
The use of these references often bolsters the confidence and self-satisfaction of the educated, convincing others that they should bow to the supremacy of those more educated than themselves.
These tactics appear to absolve these “experts” from scrutiny, enabling the objectives of central planners and tyrants.
Let’s think about what 2% inflation really means. It either means that the amount of money in circulation is increased by 2%, or that each dollar in circulation is worth 2% less than before the inflation occurred. Either way, it means that every one of our dollars is worth less.
These same experts are prone to say that the increase of fiat money "may lead" to inflation. This is inaccurate. Inflation is mathematical. It is exact, and there are critically accurate mathematical equations that apply.
If we determine that it is equitable for our money to be devalued by 2%, it means that we are in favor of our government and central banks conspiring to remove 2% of our earnings.
I did not say savings; I said earnings. When our money suffers 2% inflation, every dollar that has been earned throughout our economy, since that last inflation event, reserves roughly 98% of its former value. If the money in our savings was earned earlier still, this loss of 2% is added to the previous reduction of our wealth. The more printings our savings have experienced, the greater its devaluation (loss of purchasing power.)
It's important to remember that this "goal" of 2% inflation has not been achieved in decades.
This says nothing of what happens to those “extra dollars.” Are we silly enough to believe that our banks and our government actually “give” this “extra money” to needy citizens? No, they spend it on what they want to spend it on. They could never convince the majority of Americans to allow them to spend our money on their choices of expenditures.
Often these expenditures infringe on our liberty, increase burdens on wealth-generating endeavors, and reduce our standard of living.
Congress would never take away this tool of governmental control voluntarily. Every level of American governance has grown to rely upon this windfall of cash.
Federal agencies, bureaucracies, states, and local agencies are rarely satisfied with the funding available through direct taxation. They seem to always have a need for a little more financing than the public (the tax-payer) wants to relinquish.
Local government looks to the state for financial assistance. State governments look to the federal government for assistance, and the federal government realizes that with each dollar granted to state and local governments, an increase in its power is realized.
The federal government craves the power to preside over the management of civil affairs through this arrangement and finds creating more and more currency irresistible.
One clear way to halt unnecessary manipulation of local economies is to restrict the money flow from state governments.
One of the clearest ways to control the ability of states to micromanage local and state economies is to reduce the funds (fiat currency) available for their distribution.
The surest way to reduce federal access to fiat currency is to eliminate it altogether.
This is the very reason for our Constitution’s parameters on American money. The gold standard was firmly documented in our chief governing document, the ultimate authority over American governance, to protect the American individual, the engine of our economy, and the backbone of productivity from the despotic control of would-be tyrants.
In 1913, our Congress conspired to subvert this constitutional protection by passing the Federal Reserve Act. President Woodrow Wilson joined the conspiracy by ratifying this unconstitutional bill into “law.”
This was the origin of inflation, and the only way to reverse it would be to repeal the Federal Reserve Act, obliterate the Federal Reserve, and reinstate the US gold standard.
This would not be easy, and I believe that it is utterly impossible to expect our Congress to accomplish this task.
Congressional members are reliant on reelection, and the surest path to reelection is the promise of goods and services, which require funding.
An Article V convention of states offers the surest path to granting the power to Americans needed to override this self-licking ice cream cone of economic destruction.
The snowball effects of this one action would cascade throughout our economy, at every level, eventually recreating the most effective environment for economic prosperity.
I believe that the key to success in this arena would be to focus on reinstating the gold standard. Getting caught up in the minutia of money management would undermine any effective measure of restoration.
Regulating our economy by any human means would be insufficient. Only the laws of nature and nature’s god could rescue our economy from the evil clutches of masterminds.
Convention of States Action
Sign Petition
God bless you, Dave
“Duty is ours, results are God’s” John Quincy Adams
