John Maynard Keynes wrote that "by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some."
A dollar in 2012 has lost more than 95 percent of its value against a dollar from 1913, when the Federal Reserve was brought into existence. It may be worthwhile to ask who has profited from such a decrease in the purchasing power of our money.
In the past century we have seen lengthy and costly wars, most recently in Iraq and Afghanistan. We've also witnessed unprecedented growth in the size of the federal government. Could spendthrift politicians have accomplished these things if they were forced to either borrow or tax to make up the difference and didn't have a Fed and Treasury willing to print the money? That may be another worthwhile question.
Senate Majority Leader Harry Reid has stated that a full audit of the Federal Reserve, which has already passed the House with bipartisan support, will not even be allowed a vote in the Senate. Why oppose more transparency? Is it possible that we would find answers to the above questions, and understand why Rep. Charles A. Lindbergh called the Federal Reserve Act the "worst legislative crime of the ages?"
David King
Layton
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@Shaun: and how will issuing debt-free currency solve the inflationary problem discussed by Mr. King? Won't it enable the government to rob its citizens even more efficiently of its purchasing power?
Auditing the Fed will let us have More..
As an addendum to my letter, it should be noted that Harry Reid was once a supporter of a Federal Reserve Audit. You can see a speech where he gives his reasons on Youtube if you search for "Harry Reid Fed audit". In his speech he makes the More..
@Esquire
Trust me, no irony was wasted on me this time. My use of Keynes's words were deliberate. I could have just as easily have quoted Austrian economist F.A. Hayek stating that "history is largely a history of inflation, More..