Skip to main content

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.

Comments

Post a Comment

Popular posts from this blog

The Constitution has gone to the dogs

Actually, it should have gone to the dogs, but didn't. I'm talking about  Leona Helmsley's estate , of course. The contract clause of the Constitution says, "No State shall ... pass any ... Law impairing the Obligation of Contracts..." This means that private contracts cannot be changed by legislative edict. This clause is incredibly important because the willingness of private individuals to engage in profitable enterprise - which is the foundation of social welfare - crucially depends on their belief that they can realize a profit. In turn, their belief that they can realize a profit depends on their belief that they can hold parties to a contract liable to the terms in the contract. For example, lenders must have confidence that they can repossess the collateral for a loan if the loan is defaulted on. Otherwise, they will not take the risk of giving the loan in the first place. When lenders are too scared to lend, everyone is worse off. In the case of Leona Hel...
2 comments
Read more

What Law Is

Law What is law? Frederic Bastiat, in his treatise The Law, defines law as the collective use of force. As much as I love Bastiat’s treatise, I think his definition is not sufficiently analytical. It is certainly the case that the law plays a role in the collective use of force but the law is something more basic than this. We can begin by looking at law as it is today. The website for the Oregon courts has an excellent summary [1] of modern law and courts. I will quote it at length: Throughout history, people have had disputes and have needed some means to settle their disputes. As civil societies develop, they need an orderly system of conflict resolution. One system that developed in "western" cultures is the "law court" or court of law. In England, those early law courts developed a "body of law" called the common law, which defined both the rights of the people and the government and the duties people owe each other and their government. T...
2 comments
Read more