What Will You Do If Your Dollars Stop Being Accepted In America?

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What will you do when the dollar no longer spends? With Obama letting in the floodgates of new immigrants from our Southern border, expect welfare rolls to explode, with trillions more in taxpayer funding triggering possible runaway inflation.

And if that happens, do you know how much a cup of coffee might be? About $500 trillion dollars per cup–and that is for old, cold bitter Java. If you want Starbucks lattes, expect to pay 2 quadrillion dollars.

Don’t laugh and don’t say it’s impossible. Rhodesia used to be the Garden of Eden of Africa. Shortly after adopting socialist money schemes, and sporting the new name of Zimbabwe, their coffee cost more than that. So did their gasoline and milk and eggs. After a while, the money stopped spending altogether.

But the United States is actually deeper in debt than Zimbabwe was before their collapse. The United States of America used to be richest nation in modern history.

So I ask you again: what will you do if your paper dollars become worthless?

Here’s one solution: Buy a few thousand dollars in gold coins as a possible hedge against runaway inflation; and if the day comes that coffee costs a trillion dollars, never fear. For your gold would likely be worth well north of several quadrillion dollars. And no matter how much higher the dollar inflates, your gold, if it follows traditional patterns, would keep ahead of the curve into quintillions of dollars and so forth.

But without gold, your entire net worth, even if you are Bill Gates, could be worthless. Totally worthless.

To learn more about investing in gold coins, you may visit the web pages of any reputable gold coin dealers. One we like is: www.SwissAmerica.com.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.

This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom

What Did My Parents Ever Do To The Federal Reserve?

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In September 1993, President Bill Clinton reassured his radio audience that “if you work hard and play by the rules, you’ll be rewarded with a good life for yourself and a better chance for your children.” Picking up that theme over 18 years later, President Barack Obama affirmed that “Americans who work hard and play by the rules every day deserve a government and a financial system that does the same.” The trouble is neither the government nor the financial system backed by the Federal Reserve rewards people like my parents, who have worked hard and played by the rules their entire lives–only to have their savings wither away.

Instead, Federal Reserve officials and the intelligentsia who support them are continuously working to make their lives more difficult, frightening the masses of what shoppers look for every day—lower prices. Price deflation, the cry, is disastrous for the economy. They worry that lower prices will reduce profits, leading to shutdowns and lay-offs, and that lower prices make it harder for people to pay their debts. Sound economic theory and history, however, both indicate that price deflation is nothing the social economy needs to fear. If prices fall because the economy is more productive, this is unambiguously positive. However, if prices fall because people spend less, their desire is for larger real cash balances. Falling prices help them achieve their goal, which precisely is the purpose of economic activity.

Lower prices and wages can make it harder to pay fixed debt. This, however, serves as an excellent incentive to stay out of debt in the first place, as my parents have done as a result of significant sacrifice. Before creating even more money out of thin air to ward off lower overall prices, we should at least consider some of the ethical issues involved.

Many men from my father’s generation are not unlike John Adams, who wrote to his wife that he “must study politics and war, that our sons may have liberty to study mathematics and philosophy.” My father embarked on 20 years of hard labor in a meat packing plant providing for his family until he lost his job due to his union pricing him and his fellow workers out of a job. When his plant closed in the mid-1980s, he embarked on a second successful career with my mother, operating their own barbecue business for another 20-plus years. I saw firsthand the challenges they faced trying to keep quality up and costs down, while producing top-drawer barbecue meat and sandwiches for a demand that was always uncertain. I saw the stress on my mother’s face one week in the early days when they netted a mere $15 before taxes. My father indeed “studied” meat packing and barbecue, in part, so I could go to college and become an economist and college professor.

Additionally, mom and dad had the foresight and character to make the sacrifices necessary to stay out of debt. Indeed, they are Paul Krugman’s worst nightmare—a family determined not to live beyond their means. Now retired, like many in their generation, they are enjoying life the best they can on an almost fixed income. Because they have no debt, they have been able to live without tremendous economic hardship thus far. The Federal Reserve’s inflationism, however, increasingly makes life for them more difficult as steady price inflation daily chips away at their livelihood. Since 2009, for example, the Consumer Price Index has increased over nine percent. This masks, however, significantly larger price increases for important necessities. Prices of dairy products are up almost 17 percent since 2009. Gasoline prices are up almost 11 percent despite the recent decline. Prices for meat, poultry, fish, and eggs have increased a whopping 26 percent since 2009. Higher overall prices do not help people like my parents at all. They instead act as a thief, snatching wealth away from them in the form of diminished purchasing power. What they long for is to see the value of their savings increase. Far from creating economic hardship for them, lower overall prices would be a boon.

Both sound economics and ethics, therefore, demand that we give up the anti-deflation rhetoric and the inflation it fuels. Charity demands that we cease striking fear into the hearts of the masses, softening them up for ever higher prices. The Federal Reserve should stop punishing people like my parents who have worked hard and played by the rules their whole lives. After all, what did they ever do to Greenspan, Bernanke, and Yellen?

Dr. Shawn Ritenour is a professor of economics at Grove City College, contributor to The Center for Vision & Values, and author of “Foundations of Economics: A Christian View.”

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.

This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom

Don’t ‘Audit The Fed’ – Abolish It

Photo credit: International Monetary Fund (Flickr)

In recent remarks to the Senate Banking Committee, Federal Reserve Chairwoman Janet Yellen (pictured above) was her typical evasive and non-committal self when the topic of interest rate hikes were broached. When the subject of potential oversight of the Fed came up, however, Ms. Yellen became quite forthright in her response.

When asked about a bill introduced by Kentucky Senator Rand Paul to “Audit the Fed,” Ms. Yellen declared: “I want to be completely clear: I strongly oppose ‘Audit the Fed.’”  Ms. Yellen defended her position on the grounds (which have been given by every previous Fed Chairman) that oversight would lead to politicized monetary decision making, thus compromising the central bank’s “independence.”

Senate Banking Chairman, Richard Shelby, R-Ala., countered the Chairwoman, saying “there is an even greater need for additional oversight” of the Fed since the onset of the financial crisis in 2007.

Ms. Yellen, her predecessors, and every other Fed apologist are simply wrong when they assert that the central bank is an independent agency that is free of political influence. The Federal Reserve System was created by an act of Congress (1913) and can ultimately be “reformed,” altered, and/or abolished by Congressional fiat if so desired.

That Congress does not oversee Fed policy is a result of its charter, which was originally crafted by the Big Banksters of the time (mostly the Rockefellers and Morgans) in concert with their bought-and-paid-for politicians. The lack of oversight was a deliberate part of their plan to give bankers and financers free reign to conduct monetary policy for their own benefit.

The Federal Reserve is and has always been a political creature designed for the benefit of financial elites. It is a highly privileged cartel with monopoly control of the nation’s money supply. Unlike the propaganda that emits from Fed officials, the central bank was instituted to protect banksters from financial collapse and bank runs. Fine-tuning the economy, reducing unemployment, or fighting inflation are all ancillary concerns for the Fed.

These are the simple facts that are deliberately kept from the public at large by the political establishment, academia, and the media.

The Audit the Fed movement, which began in earnest with Ron Paul’s first presidential run, is a wrongheaded approach to solve the nation’s ongoing financial crisis. Senator Rand Paul’s bill is mostly grandstanding to bolster his status among the Republican Party’s populist contingent in his anticipated race for the nomination.

In fact, instead of meaningful reform, greater public oversight of the Fed would most likely lead to worse results. Every Congressman and Senator would be pressuring the central bank to fund their pet projects. Can one imagine what the growth rate of the money supply would be if 535 ravenous politicians had a say in the conduct of monetary policy?!

Those who want to reverse the nation’s economic malaise should seek the Federal Reserve’s abolition and advocate its replacement with a de-politicized monetary order free of central banking. Such a system would most likely be based on a commodity (gold and/or silver) where “money producers” are free to engage in the creation of the “best money” and banking services to satisfy customers’ needs.

In such an order, banks would function as any other enterprise by profit and loss. If banks loan funds wisely, they will succeed; if not, they will fail and go out of business, replaced in the marketplace by more savvy entrepreneurs. There will be no bailouts at taxpayers’ expense for reckless financial speculation. Money and banking would become a sound and honest undertaking.

To actually believe that an Audit the Fed initiative would become law is beyond naïve. The political establishment will never voluntarily relinquish or allow any legitimate oversight of one of its chief pillars of power.

Instead of seeking change via politics, reformers must first change the climate of public opinion–which can only be accomplished when the prevailing ideology is debunked. Until the Federal Reserve is seen as an engine of inflation and the creator of economic disorder that needs to be eradicated, America’s financial woes will, unfortunately, continue.

Antonius Aquinas@AntoniusAquinas

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.

This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom

Warning: America Is About To Be Left In The Dust By This Country

The US is on the brink of losing its status as the world’s largest economy and is likely to slip behind China this year, sooner than widely anticipated.

This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom

It’s Time To Prepare For The Upcoming Storm…

The lull is almost over. Now what?

I don’t need to tell the savvy readership of Western Journalism that this economic “recovery” has been a combination of smoke and mirrors, held together with a shoestring and bubble gum. The plummeting economy, triggered by the collapse of our government-inflated housing bubble, was temporarily slowed in its break-neck decline by the Obama administration’s decision to shovel astronomic amounts of taxpayer money into a hole. In June 2010, after the first round of Quantitative Easing, the Fed had holdings of $2.054 trillion. In November 2010, deciding that things weren’t improving fast enough, QE2 was launched; and we bought up another $600 billion of assets/debt. When that failed to stimulate the market into a full-on recovery, QE3 was announced in September of 2012. At that point, the Fed declared that they would be buying $40 billion/month for an open-ended duration.

Should be sufficient, right? Even the piggish appetites of our central bankers should be sated by an open-ended allowance of 400 million dollars EVERY SINGLE MONTH, right? Wrong. Just 3 months after the announcement of QE3, the Federal Open Market Committee declared that the bond-buying would be increased from $40b a month to $85b, more than doubling the amount of debt the American people were being given every month. Make no mistake; there is no money to spend on these debt purchases. This is referred to as “fiat money” as it is created by fiat, not by any market mechanisms or wealth creation. Each time money is created in this fashion, the dollar you hold in your wallet or your 401(k) gets a little weaker. The greedy progressives behind this diabolical process have discovered that they can rob you without ever touching your billfold, simply by watering down the funds they already control.

This has worked, to a degree. Along with a slavish press, the sheer volume of money spent has provided them a little cover over the past couple years, the same way that 200 gallons of plasma would keep an abdominal gunshot victim alive for a time. But if the plasma runs out, and surgery hasn’t been done, dude won’t be around too much longer. Our cupboard is now running dry. China is too highly leveraged to give us any more actual money, and inflation is starting to creep into the economy. The Consumer Price Index for 2013 was the highest it’s ever been, with a price inflation of 133% over 1982 prices.  We’re starting to look like the Town Drunk, hunched over a half-full glass of warm beer, 10 minutes after Last Call.

So now what? We know that Washington doesn’t care about us once we’ve punched their chad in the voting booth. There are only a handful of politicians in DC who are willing to serve the people they represent, and those few are increasingly ostracized from the legislative process by the statists on both sides of the aisle. It’s true that things are looking increasingly hopeful for November’s election; but even if we repeat the success of 2010, the fruits of this election will not be felt for months (perhaps years).

As the remnant has done throughout history, we must prepare. The storm is coming; there can be little question about that. Even Doctor Evil himself has tipped his hand enough to show that he believes a major market slow-down is likely. If even cretinous Marxists like Soros are openly preparing for another economic disaster, shouldn’t we? There has never been a better time for the American people to batten the hatches, and our window of opportunity might be closing soon.

What does preparation look like in today’s world? On a most basic level, we need to be prepared physically to protect and provide for our families. That means equipping ourselves with the means to survive even if the social structure breaks down. Yes, “prepper” supplies are a great idea, both for social collapse and disaster preparedness; but we should also be inculcating our families with survival knowledge that extends beyond the gear and supplies. There are plenty of good resources for this level of preparation, but two I follow and recommend are Creek Stewart of Willowhaven Outdoor and David Morris of Urban Survival.

Additionally, we should be preparing to protect ourselves and our families. In any scenario where the social compact breaks down, the predators emerge. Whether it is during a natural disaster, riots, or a targeted attack, the chaos that follows provides enough distraction for the asocial predators in our midst to operate. We must be prepared and aware enough to protect ourselves from them. Purchase a firearm. Practice with it until you are comfortable and accurate. Apply for your CCW permit, even if you don’t plan to use it. By the time you need to use a firearm, it’s too late to prepare.

Finally, we need to prepare mentally and spiritually. As much as we need to elect strong conservative men and women to office, our responsibilities do not stop at the polling place. We need to develop our knowledge of the issues facing our country. Gone are the days when we had scrupulous “experts” who could be (at least provisionally) relied on to do the right thing. Romans 3:10-18 has never been more apparent than today. Have you read Saul Alinski and Karl Marx? Are you familiar with the teachings of the Koran? Do you have a copy of The Coming Insurrection? These are the foundations upon which our opposition has built their campaign. There is no excuse for us to be unfamiliar with the enemy’s foundational tracts and tactics.

We can no longer afford to be ignorant of the repugnant. As Oliver Cromwell so aptly stated, “Keep your faith in God, but keep your powder dry.”

This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom