A View of What Happened to the Purchasing Power of the Dollar
By Ben Cerruti
October 19, 2009
I ran across this graph which I think every American should view. A picture is worth a thousand words and this one illustrates what the Federal Reserve System, aided and abetted by the Federal Government's deficit spending policies, have caused. There is good reason why this country has undergone another economic tsunami which will lead to eventual economic suicide. The only one way to prevent this from happening is to recognize the event that caused it and then attempt to reverse it.
In 1913 the 16th Amendment to the Constitution abrogating the original words "no capitation, or other direct, tax shall be laid unless in proportion to the census or enumeration herin before directed to be taken" was enacted. This allowed the imposition of a federal income tax and allowed the Federal Government to take tax money derived from one State and give it to another. Along with the act another act established the Federal Reserve System. There is no mystery why both were enacted at the same time as the progressive legislators in power at that time needed complete "power of the purse" to establish the centralized power of the Federal Government. It is obvious that efforts to repeal these acts are paramount.
Over the last century, with the ability to essentially buy legislative influence with campaign contributions and other benefits. progressive elements have been successful in having legislation passed that induced many to look towards the Federal Government as the entity to take care of their daily problems. In doing so the freedom endowed by our Creator of life, liberty and the pursuit of happiness have been incrementally eroded. There is no free lunch and this is becoming apparent with each passing day. In electing a President whose actions follow the teachings of Karl Marx we find the ultimate progressive ready to have us all pay the piper by way of a fascistic form of government. One in which the purchasing power of our "fiat" currency would be worthless and probably be replaced by a world currency with greatly reduced value. It should be apparent that the prosperity experienced in the past would be diminished since the incentives for entrepreneurs to gain an adequate return for their investments would in turn be diminished.
Thus readers, if this makes sense to you as it does to me, strongly oppose every piece of legislation supported by this present administration, even though it may seem to be harmless. When legislators themselves do not have the time to read that on which they vote it must arouse suspicion. There are many ways to change bills that have been written in either chamber and especially when the leaders of both houses of Congress come together to reconcile their respective bills into one that will be submitted to the President.
Finally, there are movements in this country to repeal the acts heretofore mentioned. When you hear of them please support them. There are more than two political parties in this country and perhaps the time has come to look at all of them before making your voting decisions.
Now a senior citizen, Ben Cerruti has been involved in espousing his views in writing for the last 20 plus years in various San Francisco bay area newspapers and has been actively involved in taking positions on ballot measures in writing and on television. He has had extensive correspondence with Milton Friedman, renowned economist and Nobel Laureate that provided him with intimate knowledge of the functions of the Federal Reserve System.