Inflation

The case of IndyMac, the largest regulated thrift institution to fail in U.S. history, shows just how fundamentally unsound our government supported banking system is. The fractional reserve banking swindle can only continue so long and I hope the IndyMac failure will open some people's eyes.

Frank Shostak has written a simple yet brilliant article over at Mises.org explaining the recent increases in inflation. Ben Bernanke and other establishment economists will have you believe that inflation is caused by high commodity prices, such as the record price of oil. Mr. Shostak notes, correctly, that no single commodity can cause a general rise in prices. Only an increase in the supply of money and credit can cause the overall level of prices to rise. I won't try to explain any further; just read Mr. Shostak's uncomplicated and lucid essay on the true causes of inflation.

If "Truth is treason in the empire of lies," as Rep. Ron Paul (R-Texas) writes in his new book, The Revolution: A Manifesto, then Paul has certainly committed treason by laying out the truth of the precarious state of the United States in 2008.

Zimbabwe has just released a new $50 million bank note. This comes after it was reported that inflation reached 165,000% in the month of February. Oh what prosperity central banks can bring! I can't wait for the day it costs $15 million to buy a loaf of bread here in the United States.

Hear Ye, Hear Ye
This proclamation has been endorsed with the seal of the King.  All subjects of our Divine Ruler shall take heed and carry out the following instructions.  Please note that failure to render your servitude will bear a heavy price.
Hence forth our great ruler shall be addressed as My Lord, My Lordship, My [...]

Fed chairman Ben Bernanke testified before Congress a few days ago, and was schooled once again by Ron Paul. My favorite statement by Bernanke, which he often repeats when discussing monetary issues with Dr. Paul, is that he is charged with creating "stable prices" via the workings of the central bank. It honestly blows my mind that you can assume you are creating price stability by inflating the money supply. Look at this graph of the MZM money stock:

From the Ron Paul campaign:

ARLINGTON, VIRGINIA - Following its historic fundraising day on December 16th, Ron Paul campaign chairman Kent Snyder issued the following statement: