Since 1913, it has engaged in a deliberate policy of inflation- an expansion of the money supply that has resulted in precipitously rising prices. Inflation benefits debtors at the expense of creditors. It benefits those with market power who have the ability to increase prices without losing market share. Inflation destroys real capital and overstates profits. It encourages speculation and spending, at the expense of prudence and savings. Inflation discourages ownership and fosters renting, depriving people of private property and liberty. It hurts those on fixed incomes, especially the poor and middle class…
…There is no historical evidence that a nation which relies on the excess creation of money will benefit from long term prosperity. In actuality, the opposite occurs.
… and calls for Congressional action to
- stop the Fed’s purchasing of Treasury debt
- prohibit the Fed from setting interest rates
- eliminate the Fed’s ability to implement inflationary policies
I have my doubts that this will occur but it would be a great first step that has been made more possible by the recent appointment of Ron Paul as Chairman of the Domestic Monetary Policy Subcommittee