There is one and only one cause of inflation and that is an increase in the money supply. The Federal Reserve arbitrarily printing up fait money is the only vehicle there is to increase the money supply.

As of September of this year there was 688 billion dollars in currency. Total M1 funds were at 1.4 trillion. Total M2 funds were at 4.99 trillion, and total M3 funds were at 2.95 trillion. This comes to just over 9.3 trillion dollars of currency and electronic funds. The 700 billion bail out funds just recently added to the money supply, increased inflation by 7%. That means that 4 million retirees living on $10,000 a year just lost $700.00 purchasing power. What do they have to cut out next, food…medicine…heat…housing?

I keep hearing that there is a loss of consumer confidence, which is now causing our depression. Wrong again. Consumers have not lost their confidence, consumers are so overburden with debt that they can’t afford to buy anymore. Paying 50% of your income out on a mortgage and 30% of your income out on credit cards at 18% to 32% interest because of consumer overconfidence would probably be a more accurate statement of why consumers are not buying. The banks caused this problem by making credit too easy. Not a week goes by that I don’t get another offer from a bank for a low interest credit card. Of course if your late on just one payment they jack the interest up. Now your money is going to pay past purchases with nothing left to continue purchasing.

There is a solution, but no one is looking at it. Corporate, Big Money, and Government still keep trying to fix symptoms of the problem without even so much as a glance at the root of the problem. I was once told that when you support non-production and penalize production, you get non-production. This bail out of the banks, corporate, and wall street big money is only going to cause further failures, and more bail outs. The government is supporting the cause of the failures.

The FDIC was created to protect the DEPOSITORS interest, up to the current allowable amount, in case of a bank failure. It was not to provide a failing bank a huge cash windfall bonus in order to delay their inevitable failure.

The answer, Thomas Jefferson gave to us 206 years ago:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)

Looks like Jefferson was right. That is exactly what is happening now.

The Federal Reserve Act of 1913 needs to be repealed.