 Prince Of Paper
Ascends The Throne
Former US Chief Economist Comments
On Ben S. Bernanke Succession To Alan Greenspan
Open Letter To The Public
By Morgan Reynolds,
February 1, 2006
EVANSVILLE, Ind. Jan 31, 2006
--- Former U.S. Chief Economist, Department of Labor 2001-2,
Ph.D. Economist and Professor Emeritus at Texas A&M University
Morgan Reynolds issues Open Letter To The Public:
Name the three most important
issues in politics: War in Iraq? Abortion? Domestic spying? None
of the above. Nothing is more important than money, money, money
- its quality and who controls it. We all know it in our gut
- money means our livelihoods, our retirements, the life-blood
of commerce plus an obese government feasting on newly printed
moolah daily. Money is "the most important thing in the
world," as playwright George Bernard Shaw said, yet it is
wrapped in mystery because politicians and the Fed do not want
the people to understand it.
On February 1, Ben S. Bernanke,
the Prince of Paper, succeeds Alan Greenspan on the throne at
the Federal Reserve Board, the cabal that has mismanaged the
U.S. dollar and banking since 1913. Bernanke has the power to
screw things up royally and he is off to a fast start: gold has
gone up over $100 an ounce since Bush nominated him.
Bernanke's resume is unmarred
by real-world experience, so he is perfect for the job. He will
be a disaster because he is wrong about virtually everything.
He claims devotion to "long-run price stability" and
"continuity" with the policies of the Greenspan Fed.
He cannot be both. Greenspan's inflationary policies have boosted
the government's consumer price index by 67%. That is the opposite
of "long-run price stability." Consumer prices have
risen every year for a half-century. I detect a pattern here,
it's called a rip-off of the consumer's purchasing power.
 Before B.S. Bernanke is done, he will
make Greenspan look like a tight-money man. Bernanke's paper
trail tells us because he fears falling money prices as the biggest
risk of all, so he stands ready with "an invention called
the printing press" to combat this evil. He promises faster
inflation in response to the next financial crisis, supplying
the "liquidity" the system needs. "Helicopter
Ben" has even promised to drop money from the air, but he
won't drop any on you or me. Insiders get it first.
Mr. Ph.D. does not understand
why a bust happens. That makes him extra dangerous. Every bust
is caused by the preceding boom and its excesses. The bust is
curative. And what caused the credit boom? The Fed! Its artificial
pumping of money and credit through the banking system induces
boom-bust cycles. When Bernanke fights the market by injecting
new credit in the next crisis he will sustain unsound debt, weak
debtors and lousy companies, prolonging depression. That's the
opposite of "putting it behind us."
Sound money is the fount of
prosperity yet the Fed was created to supply an "elastic
currency" for the nation and coordinate expansion of cheap
bank credit on behalf of Wall Street and bankers. The Fed was
designed to flee from sound money. It is an inflationary menace
to everyone and we are on the verge of a dollar crack up.
Voltaire said every currency
returns to its natural value. For paper money, that is nothing.
How can you protect yourself?
First, shift investments toward
hard assets like silver, gold, oil, timber.
Second, shift from the prince's
paper toward hard money in your transactions. Hard money has
meant silver and gold since the dawn of civilization.
We want good money and we want
it now, before the greenback tanks. The easiest way to use gold
and silver today is to rely on the competitive marketplace to
supply it, like the Liberty
Dollar, because it's .999 fine silver, it is readily available,
and functions 1:1 with Bernanke's paper dollars.
FedEx arose to challenge the
government's postal monopoly and now competitive money suppliers
like Liberty Dollar have a huge opening. Competition from the
private sector is the only way we'll get high-quality money and
put the people back in charge. Government separated gold and
silver completely from its unbacked paper dollars, so we have
the freedom to use any money we want. It's all voluntary. There
is no legal barrier to using a new currency like the Liberty
Dollar, in specie, real paper or electronic digits that are 100%
redeemable in silver and gold.
America wants a bottom-up,
inflation-proof, market-driven money, not a top-down, debt-based
money controlled by the power elite. Let the competitive market
in money roar. With each individual choosing what currency to
use, the superior money will triumph.
-Morgan Reynolds
CONTACT:
Bernard von NotHaus
The Liberty Dollar
225 N. Stockwell Road
Evansville. IN. 47715
phone: 812.473.5250
email: Media@LibertyDollar.org
website: www.LibertyDollar.org
SOURCE:
The Liberty Dollar
321gold Inc
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