The Two Bens
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(Conspiracy Nation, 11/25/05)
-- Here we have two Bens: Ben Franklin and Ben Bernanke. Franklin is of
course the innovative scientist and Revolutionary War figure. Ben
Bernanke is the Princeton economist slated to be the next Federal
Reserve chief. What could "The Two
Bens" have in common?
An instant classic by James J. Puplava, "The Two Bens" (http://www.kitco.com/ind/Puplava/oct312005.html)
begins with the following quote:
This currency, as we manage
it, is a wonderful machine. It performs its office when we issue it; it
pays and clothes troops, and provides victuals and ammunition; and when
we are obliged to issue a quantity excessive, it pays itself off by
depreciation.
~ Ben Franklin, April 1779
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What Franklin meant was that the "Continental," the paper money
issued
by the Revolutionary War government, was amazing! Whenever they needed
money, they could just print it! Imagine if you could do that!
How could this be, that money could be created from nothing? An
answer,
according to Franklin, was, "it pays
itself off by depreciation."
They can print more money, but then the money is worth less. The
U.S. government has a "no limit" credit card. To buy things, the
government just says, "Charge it." But then come the "low monthly
payments." Ouch! Say, these "low monthly payments" are getting
expensive! What to do? Hmmm.... Let's print some more money! This is
called monetizing the debt.
Here is a riddle: all say they are "inflation
hawks." None ever says he is an "inflation
dove." Yet "over the last 35 years, especially since abandoning
the Bretton Woods system in August 1971, the money supply has increased
from a low of $613.3 billion in February of 1970 to $9,976.7 billion as
of September 30, 2005, an increase of more than 1,500 percent." (http://www.kitco.com/ind/Puplava/oct312005.html)
That is 1500 percent inflation,
even though all are "inflation hawks" and none are "inflation doves!"
Ben Bernanke, deemed to be the next "Fed" chair, replacing Alan
Greenspan, is sometimes called
"Helicopter Ben." "He earned
the nickname 'Helicopter Ben' when he implied that deflation could be
fought by dumping money out of helicopters..." (http://www.financialsense.com/fsu/editorials/merk/2005/1122.html)
"Something is terribly afoul at the Fed, but the popular financial
press offers little but moronic platitudes and attacks on 'conspiracy
theorists' who dare to question the sanctity of the Federal Reserve
Board." (http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712)
"Unilaterally and without reasonable explanation, the Fed has
decided to stop reporting money supply M3, the broadest of the monetary
aggregates and probably the most important statistic published by the
U.S. central bank. The decision comes as a shock to many in the
financial community and apparently to other central banks, which
reportedly were not consulted." (http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712)
If any Congress-person were to ask "Helicopter Ben," about "Why would they be hiding the M3 numbers?",
Bernanke would respond, "Hey, don't ask me, ask Greenspan." So they
would ask Greenspan and he would say, "Hey, don't ask me, ask Bernanke."
Why would they be hiding the M3
numbers? Likely is "Fed monetization of debt, which would tend
to increase the money supply as reported in M3." This would be followed
by higher prices, a symptom of inflation. "Oh, how nice it would be for
Mr. Bernanke not to have to report those nasty M3 statistics." (http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712)
Take another look at Ben Bernanke's picture above. Does he remind
you of anyone, say Rob Reiner, "The Meathead" from "All In The Family"?
How could "The Meathead" be an "inflation hawk"!?
So there is your answer, for the question, What could "The Two Bens"
have in common? When they are obliged to issue a quantity excessive of
paper money, it pays itself off by depreciation.
They are vacuuming out your wallet.
That's what inflation is: a hidden tax; a sneaky way to take your
money. When you receive your paycheck, besides the taxes already
vacuumed out of it, one other suction hides unseen. "Today the true
rate of inflation is running well over 7 percent..." (http://www.kitco.com/ind/Puplava/oct312005.html)
Once "Helicopter Ben" takes over at the "Federal" Reserve, that vacuum
cleaner probably goes into high gear. And don't look for the M3 data!
It's gone!!
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Conspiracy Nation
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