Could Someone Please Explain the Money Supply?

[Jeffiner99]

One thing I find missing from this thread is the definition of inflation. The word has been hijacked and replaced. It actually means monetary inflation = increase of the money supply. When the money supply goes up, the value of the money decreases. When the value of the money decreases it takes more money to purchase things, hence prices rise. Prices rising = price inflation.

It takes a while to see this cycle. Thus, by the time the prices rise the people who inflated the money supply can blame the rising prices on something else. Then they use the word inflation to mean price inflation: something mysterious that can't really be fully explained.

But it is explained. Simply. Inflation comes from printing more money.

Why do we have to accept this paper? See legal tender laws.

Why is the federal reserve the only one who can print money? Because Congress said so.

The Federal Reserve is a cartel. It is a private cartel that does not answer to anyone. Yes, it would help a lot if we knew how much they were printing, but they won't tell. If you were a counterfeiter would you?

This system is a way for the federal government to get the dollars it wants to fight wars and create programs without taxing the people directly. If it did tax directly the people would shout bloody murder. But the people don't know this is happening to them. So the politicians get all the money they want, and the purchasing power of the dollar keeps dropping, personal savings are worth less each year, and the rich get to stick their hands into the people's pockets every night and take as much as they think they can get away with.

The reason this fiat system always fails is that politicians are greedy and keep taking more and more and more. Eventually the strain on the currency is too much to bear and we get hyper-inflation where it costs 5000 to buy a loaf of bread because the dollars are worthless. Already, other countries are starting to avoid dollars in favor of the Euro.

Mises.org does a great job of explaining it. So does Murray Rothbard. You can do a search of google videos to find out about the Federal Reserve. They are a bunch of thugs. Very secret thugs. Not even the president knows who they all are. They are the cause of all of our financial instability not the solution although that is how they try to sell themselves.