Editor, New Era:
I'd like to comment on the ridiculous policy that the federal government is somehow going to manufacture "prosperity" for all of us, simply by legislation. What a farce! It has never worked and it will not work this time either. Those who are screaming at each other about the best way to create prosperity are the very ones who contributed to the latest recession.
First, we must identify the culprits behind the misnamed "business cycle." They are our central bank or Federal Reserve and Congress. Together, they participate in the non-stop activity of "credit expansion." In a nutshell, when borrowing occurs, the Fed releases new money into the existing supply of bank notes already in circulation. This, in turn, devalues the notes previously held by you and I. This is inflation. Rising prices are not inflation. Higher prices are merely the result of inflation!
Secondly, we must ask, who does this cozy partnership of economic control and monetary manipulation benefit? Whom does it injure? Governments, the world over, love centralized banking. It permits legislators to avoid taxing the masses directly. Instead, they call on the Fed to borrow "legal tender." In other words, citizens lose control of their government. The majority will of the people no longer matters. As a result, governments naturally become authoritarian in nature and property rights come under assault by "legislation" and taxation. Frivolous spending occurs on a whim because we cannot stop it.
It should be noted that the most destructive wars ever conducted in history were made possible because of unlimited borrowing, courtesy of centralized banking. So-called "peaceniks" haven't a clue as to what could actually help to maintain a general "peace." In fact, most of them do not actually want the things that can create peaceful social cooperation and commerce among nations.
No further "credit expansion" should occur. New Federal Reserve notes should stop being printed. A gradual, transitional "phasing in" of a "pure gold standard" must occur to save us from the eventual total collapse of the currency. Inflation cannot go on forever. Coin and/or bank notes can both coexist. However, a 100 percent backing by gold can prevent any government from spending their nation into oblivion. Gold backing strictly limits a currency supply. Sound money, backed by precious metal, serves the masses and not their rulers!
Thomas H. Bailey
Ephrata
