Friday, January 2, 2009

The Federal Resrve - Taxation without Representation

The Federal Reserve - whether you realize it or not - is the Federal government's secret money machine. As such, the Federal Reserve is a tax system. Bernanke himself admits in testimony before Congress that the Federal Reserve is a tax machine when he responded to questioning by Ron Paul that "... I couldn't agree more that inflation is a tax..." Of course, Bernanke does not admit that the Federal Reserve is the primary or solitary cause of the rise in prices, but instead adopts the mantle that the Federal Reserve is actually fighting inflation, a patently absurd notion. A dollar today buys what a dime bought in 1971. At the same time, the money supply has been expanded many times under the auspices of the Federal Reserve. Of course, this is only a coincidence! 

What is important is that you realize that the Federal Reserve expands the money supply (prints money), that the expansion of the money supply raises prices in general, and that a general rise in prices is a tax and that this tax occurs without any input or recourse from you. The Federal Reserve is the vanguard of the new crypto-aristocracy.

The Founding Fathers of the United States threw off British rule primarily for this reason. Perhaps it's time that some freedom-loving state in this Union consider repeating the same secession. If anything, we have far more cause than the American revolutionaries to throw off the oppression of our government. The Federal government is taxing us much, much more through inflation than the British crown ever taxed the colonists.

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