Don't let the Fed hide its “basement counterfeiting”

[Nathaniel Dube]

If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do. So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.

[KenStahl]

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do. So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.

However, for every new dollar bill that is placed into
circulation there is one destroyed or otherwise removed from
circulation. For example, unless things have changed
recently, the country of Liberia uses U.S. currency. So
every time someone travels to Liberia and takes U.S.
currency with them and spends it there, those bills are then
out of circulation as far as the U.S. economy is concerned.

Also, the number of bills in circulation really have to
relationship to worth. In fact, U.S. currency on its own
merits is worthless. However, what we do have is an
agreement that if someone is selling something and places a
value of $10 on that item then the seller must agree to
accept the equivalent of $10 in currency (i.e. one $10 bill,
2 $5 bills, etc) as payment in full for the $10 item
(disregarding sales tax if applicable). So, if that item is
offered at $10, a seller cannot say to a buyer that there is
too much currency in circulation and therefore it will
require $20 in currency to purchase the $10 item. At the
same time millions of Americans do not use currency for the
bulk of their transactions. Their payroll earnings are
deposited electronically in a bank, they write checks
against that amount and the check is presented at a bank of
the recipient's choice who then credits the amount to the
recipient's account and then passes the check on to the next
bank in the chain who does a similar credit. This goes on
until the check reaches the bank of the person who wrote the
check and there the amount of the check is deducted from the
account of the person who wrote the check. In that whole
process "money" was transferred around, but unless the
person who received the check requested actual currency, no
currency would be involved at any point in the transaction.
So in that case it doesn't matter how many pieces of paper
are floating around (or hidden in a mattress for 50 years
for that matter). Therefore paper currency is worthless in
itself and only because it can be used as legal tender does
any type of value change hands.

The Treasury can print as much money as it wants, but no one
is going to stand outside of the Treasury building just
giving wads of it away to anyone that passes. So they could
have warehouses full of printed bills and it doesn't affect
the value of a dollar.

[Curly Surmudgeon]

Post by KenStahl

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do. So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.

However, for every new dollar bill that is placed into
circulation there is one destroyed or otherwise removed from
circulation. For example, unless things have changed
recently, the country of Liberia uses U.S. currency. So
every time someone travels to Liberia and takes U.S.
currency with them and spends it there, those bills are then
out of circulation as far as the U.S. economy is concerned.
Also, the number of bills in circulation really have to
relationship to worth. In fact, U.S. currency on its own
merits is worthless. However, what we do have is an
agreement that if someone is selling something and places a
value of $10 on that item then the seller must agree to
accept the equivalent of $10 in currency (i.e. one $10 bill,
2 $5 bills, etc) as payment in full for the $10 item
(disregarding sales tax if applicable). So, if that item is
offered at $10, a seller cannot say to a buyer that there is
too much currency in circulation and therefore it will
require $20 in currency to purchase the $10 item. At the
same time millions of Americans do not use currency for the
bulk of their transactions. Their payroll earnings are
deposited electronically in a bank, they write checks
against that amount and the check is presented at a bank of
the recipient's choice who then credits the amount to the
recipient's account and then passes the check on to the next
bank in the chain who does a similar credit. This goes on
until the check reaches the bank of the person who wrote the
check and there the amount of the check is deducted from the
account of the person who wrote the check. In that whole
process "money" was transferred around, but unless the
person who received the check requested actual currency, no
currency would be involved at any point in the transaction.
So in that case it doesn't matter how many pieces of paper
are floating around (or hidden in a mattress for 50 years
for that matter). Therefore paper currency is worthless in
itself and only because it can be used as legal tender does
any type of value change hands.
The Treasury can print as much money as it wants, but no one
is going to stand outside of the Treasury building just
giving wads of it away to anyone that passes. So they could
have warehouses full of printed bills and it doesn't affect
the value of a dollar.

That's been disproven time and time again. Just check out the Wikipedia
entry: http://en.wikipedia.org/wiki/Inflation

"Both of these are often caused by a government adding too much money to
an economy, as by printing it or lending/selling virtual money to banks or
other entities."

-- Regards, Curly
------------------------------------------------------------------------
http://www.curlysurmudgeon.com
------------------------------------------------------------------------

[KenStahl]

Post by Curly Surmudgeon

Post by KenStahl

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do. So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.

However, for every new dollar bill that is placed into
circulation there is one destroyed or otherwise removed from
circulation. For example, unless things have changed
recently, the country of Liberia uses U.S. currency. So
every time someone travels to Liberia and takes U.S.
currency with them and spends it there, those bills are then
out of circulation as far as the U.S. economy is concerned.
Also, the number of bills in circulation really have to
relationship to worth. In fact, U.S. currency on its own
merits is worthless. However, what we do have is an
agreement that if someone is selling something and places a
value of $10 on that item then the seller must agree to
accept the equivalent of $10 in currency (i.e. one $10 bill,
2 $5 bills, etc) as payment in full for the $10 item
(disregarding sales tax if applicable). So, if that item is
offered at $10, a seller cannot say to a buyer that there is
too much currency in circulation and therefore it will
require $20 in currency to purchase the $10 item. At the
same time millions of Americans do not use currency for the
bulk of their transactions. Their payroll earnings are
deposited electronically in a bank, they write checks
against that amount and the check is presented at a bank of
the recipient's choice who then credits the amount to the
recipient's account and then passes the check on to the next
bank in the chain who does a similar credit. This goes on
until the check reaches the bank of the person who wrote the
check and there the amount of the check is deducted from the
account of the person who wrote the check. In that whole
process "money" was transferred around, but unless the
person who received the check requested actual currency, no
currency would be involved at any point in the transaction.
So in that case it doesn't matter how many pieces of paper
are floating around (or hidden in a mattress for 50 years
for that matter). Therefore paper currency is worthless in
itself and only because it can be used as legal tender does
any type of value change hands.
The Treasury can print as much money as it wants, but no one
is going to stand outside of the Treasury building just
giving wads of it away to anyone that passes. So they could
have warehouses full of printed bills and it doesn't affect
the value of a dollar.

That's been disproven time and time again. Just check out the Wikipedia
entry: http://en.wikipedia.org/wiki/Inflation
"Both of these are often caused by a government adding too much money to
an economy, as by printing it or lending/selling virtual money to banks or
other entities."
-- Regards, Curly
------------------------------------------------------------------------
http://www.curlysurmudgeon.com
------------------------------------------------------------------------

A Wikipedia entry does not prove or disprove anything. For
all we know that article could have been written by a
Charles Manson or Nancy Kerrigan.

[Curly Surmudgeon]

Post by Curly Surmudgeon

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly
calls him a criminal. But when the Chairman of the Federal Reserve
(the Fed) does the same to help finance federal deficits, Congress
calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your
savings. Congress doesn't understand this, but the financial markets
do. So the Fed wants to hide all the “basement counterfeiting”
it's doing. A number called M3 exposes the full extent of the Federal
Reserve's “basement counterfeiting.” M3 shows that the money
supply is exploding. The Fed wants to hide this fact. So they're going
to stop reporting the M3 number starting March 23. Fortunately,
there's a bill in Congress that would force the Fed to continue
publishing M3. Please support this bill! Don't let the Fed hide its
“basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass
H.R. 4892, the Sunshine in Monetary Policy Act.

However, for every new dollar bill that is placed into circulation
there is one destroyed or otherwise removed from circulation. For
example, unless things have changed recently, the country of Liberia
uses U.S. currency. So every time someone travels to Liberia and takes
U.S. currency with them and spends it there, those bills are then out
of circulation as far as the U.S. economy is concerned.
Also, the number of bills in circulation really have to relationship to
worth. In fact, U.S. currency on its own merits is worthless. However,
what we do have is an agreement that if someone is selling something
and places a value of $10 on that item then the seller must agree to
accept the equivalent of $10 in currency (i.e. one $10 bill, 2 $5
bills, etc) as payment in full for the $10 item (disregarding sales tax
if applicable). So, if that item is offered at $10, a seller cannot say
to a buyer that there is too much currency in circulation and therefore
it will require $20 in currency to purchase the $10 item. At the same
time millions of Americans do not use currency for the bulk of their
transactions. Their payroll earnings are deposited electronically in a
bank, they write checks against that amount and the check is presented
at a bank of the recipient's choice who then credits the amount to the
recipient's account and then passes the check on to the next bank in
the chain who does a similar credit. This goes on until the check
reaches the bank of the person who wrote the check and there the amount
of the check is deducted from the
account of the person who wrote the check. In that whole
process "money" was transferred around, but unless the person who
received the check requested actual currency, no currency would be
involved at any point in the transaction. So in that case it doesn't
matter how many pieces of paper are floating around (or hidden in a
mattress for 50 years for that matter). Therefore paper currency is
worthless in itself and only because it can be used as legal tender
does any type of value change hands.
The Treasury can print as much money as it wants, but no one is going
to stand outside of the Treasury building just giving wads of it away
to anyone that passes. So they could have warehouses full of printed
bills and it doesn't affect the value of a dollar.

That's been disproven time and time again. Just check out the
Wikipedia entry: http://en.wikipedia.org/wiki/Inflation
"Both of these are often caused by a government adding too much money
to an economy, as by printing it or lending/selling virtual money to
banks or other entities."
-- Regards, Curly
------------------------------------------------------------------------
http://www.curlysurmudgeon.com
------------------------------------------------------------------------

A Wikipedia entry does not prove or disprove anything. For all we know
that article could have been written by a Charles Manson or Nancy
Kerrigan.

Gads, you denyers become annoying, can't you do your own research?

http://www.bized.ac.uk/virtual/economy/policy/outcomes/inflation/inflth5.htm
"Many economists argue that one of the main causes of inflation is
excessive money supply growth."

http://www.econlib.org/library/Enc/MoneySupply.html "If the money supply
continues to expand, prices begin to rise, especially if output growth
reaches capacity limits. As the public begins to expect inflation, lenders
insist on higher interest rates to offset an expected decline in
purchasing power over the life of their loans."

http://www.investorwords.com/3110/money_supply.html "The money supply is
considered an important instrument for controlling inflation by those
economists who say that growth in money supply will only lead to inflation
if money demand is stable."

http://dictionary.reference.com/search?q=inflation in·fla·tion Audio
pronunciation of "inflation" ( P ) Pronunciation Key (n-flshn) n.

1. The act of inflating or the state of being inflated. 2. A persistent
increase in the level of consumer prices or a persistent decline in the
purchasing power of money, caused by an increase in available currency
and credit beyond the proportion of available goods and services.

To capsulize, your denial of reality holds no water. Inflation is caused,
for the most part, by turning on the printing presses, ie: releasing more
fiat money into the economy.

That the Federal government put the printing presses into overdrive some
six months ago and that historical examples show inflation taking off 18
months after that event, does indeed predict some nasty inflation problems
late this year.

Of course inflating the dollar mitigates the enormous borrowing now going
on.

-- Regards, Curly
------------------------------------------------------------------------
http://www.curlysurmudgeon.com
------------------------------------------------------------------------

[KenStahl]

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do. So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.

And no, I won't support that bill. It is silly of you to
even ask that someone do that and is a waste of time.

[Werner Hetzner]

Post by Nathaniel Dube
If your neighbor prints dollars in his basement the government rightly calls
him a criminal. But when the Chairman of the Federal Reserve (the Fed) does
the same to help finance federal deficits, Congress calls him a genius.

If your neighbor is in the gambling business the government calls him a
criminal. When the government is in the gambling business it is called a
revenue source.

When someone muggs you it is a crime. When the government takes your
money it is called a tax.

When the bank defrauds you bankers are put in jail. When the government
does it it is calle Social Security.

Empire of Debt : The Rise Of An Epic Financial Crisis (Hardcover)
by William Bonner, Addison Wiggin

Post by Nathaniel Dube
Each new dollar printed by the Fed makes each existing dollar worth less.
Monetary inflation means higher prices and less value for your savings.
Congress doesn't understand this, but the financial markets do.

Congress understands it just fine, but money to buy votes has to come
from somewhere. When they can't tax us enough or borrow enough they can
still print enough.

Post by Nathaniel Dube
So the Fed
wants to hide all the “basement counterfeiting” it's doing. A number called
M3 exposes the full extent of the Federal Reserve's “basement
counterfeiting.” M3 shows that the money supply is exploding. The Fed wants
to hide this fact. So they're going to stop reporting the M3 number
starting March 23. Fortunately, there's a bill in Congress that would force
the Fed to continue publishing M3. Please support this bill! Don't let the
Fed hide its “basement counterfeiting.” Click here
<http://action.downsizedc.org/wyc.php?cid=44> to tell Congress to pass H.R.
4892, the Sunshine in Monetary Policy Act.