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To Understand Inflation It’s Vital to Understand the Fraudulent Federal Reserve’s Role in Devaluing Your Dollars. We Must Abolish the Fed to Control Our Money.

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Today we’re going to define inflation in a non-traditional way.

What we mean by that is there are lots of theories running around about what this economic term is, what causes it, etc.

However, those theories generally miss the real cause behind the problem.

The real cause is hidden because the people putting these ideas out there: either have no idea of the Federal Reserve fraud, or, they’re paid by Federal Reserve ownership to keep Americans off the correct path.

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A Hidden Tax

Understand how you’re hit with a hidden tax…

It’s often said that inflation is the consistent rise in the cost of goods and services.

However, it’s more accurate to say that it’s the weakening of the purchasing power of the dollar.

As your dollars are worth less as more and more money hits the economy, you’re hit with this hidden tax because your purchasing power is being eroded.

This hidden tax is brought upon you by the unconstitutional Federal Reserve.

Since childhood, you’ve been taught by an elite with control over U.S. media ownership that the Federal Reserve System is a government organization.

You’ve been lied to. As you follow the links provided here, you should finally realize that the Federal Reserve is a fraud.

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Jekyll Island

In order to further understand this concept, you need to know the background of the Federal Reserve.

The Federal Reserve System was hatched in 1910 when seven men, representing powerful banking interests, met at Jeckyll Island.

It was there that the “money trust” deceived the American public into allowing the Federal Reserve Act to be passed.

A private banking cabal was successful in forming a partnership between the government and its cartel.

This partnership allowed for the so-called “legal” extraction of wealth from the people for the benefit of the cartel.

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Fed Counterfeits Money

Here’s how the Fed works: when the U.S. Government needs money, it goes to the Federal Reserve for it.

The Federal Reserve just prints up money and buys Government Bonds from the government.

Understand what that means.

The Fed has been given the power to counterfeit money into existence out of thin air.

If they buy a million dollars of bonds, they just print up the money to do it with. Five minutes ago, that million dollars didn’t exist!

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Further Explanation of Money Creation

As we define inflation, consider Don J. Grundmann’s words regarding the Federal Reserve System:

“Government BORROWS 1 billion dollars as a ‘loan’ from the private bank.

“Private bank gives a 1 billion dollar credit to the government (makes the money out of thin air).

“Government now OWES 1 billion dollars PLUS INTEREST to private bank.

“Private bank only created “money” for the principal and NOT the interest.

Even if government paid back the 1 billion dollars it would STILL owe the “INTEREST” on the “loan”.

“Therefore government must take out a second loan (L2) to pay the interest on loan number 1 (L1).

Private bank creates “money” for principal of loan L2 but NOT the interest of loan L2.

Government, even after paying off the interest of loan L1, and the principal of L2, still owes the interest of L2 as that was (in our example) never created yet.

Government must take out loan number 3 (L3) to pay the interest on L2.

This process must be infinitely repeated as the interest to pay a loan is never made when the loan is made and must be obtained for payment of the previous loan by a new loan for the interest itself. Ultimate results:

” “The nation is FOREVER in debt to the private bank”.”

We’re willing to bet no other attempt to define inflation ever exposed this truth to you.

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System Weakens Your Dollar

Besides being in perpetual debt, you’re also hit with the hidden tax of inflation because every time the Fed prints up more money and floods it into the economy, that “new” money dilutes the purchasing power of the “old” money that was already out there being used.

As we attempt to understand inflation, it’s this dilution that causes what we call inflation.

As mentioned earlier, this weakening of the purchasing power of your dollar is inflation.

It’s not some magical rising of prices that most attempts to define inflation will try to get you to believe.

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Edward Griffin

Let’s consider the wise words of Edward Griffin, as he helps us define inflation in “The Creature From Jekyll Island”:

“…we have the phenomenon called inflation which is the appearance of rising prices.

“I emphasize the word “appearance” because in reality prices are not rising at all.

“What we’re seeing is that the value of the dollar is going down, that’s the real side of the equation.

“If we had real money based on gold or silver or anything tangible that couldn’t just be created out of thin air, it could be based on microphones, that they couldn’t just create with the stroke of a pen, you would see then that prices would remain stable over a long period of time.

“To illustrate that point, it’s interesting to know that if we had lived in ancient Rome with a one ounce gold coin we would’ve been able to buy a very fine toga, a hand-crafted belt and a pair of sandals that was the price in Rome.

“Today, if we have a one ounce gold coin what can we buy with it?

“We can go into any men’s store and buy a very fine suit, a hand-crafted belt and a pair of shoes.

“The price of these items hasn’t changed in thousands of years when expressed in terms of real money but when expressed in terms of these things we carry around in our pockets called Federal Reserve notes which is not really money at all, fiat money anyway, the prices keep going up and up and up because the value of those units keeps going down and down and down because they keep making more and more and more of them and dumping them into the economic soup.”

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