Contact FreedomWorks

111 K Street NE
Suite 600
Washington, DC 20002

  • Toll Free 1.888.564.6273
  • Local 202.783.3870
LISTEN NOWThe Freedom Files Podcast Episode 22: Ajit PaiListen Here


QE3 Will Further Destroy U.S. Dollar

Speculation has risen that Fed chairman Ben Bernanke may announce yet around round of quantitative easing or QE3 on Friday. As economist Thomas Sowell says, “when people in Washington start creating fancy new phrases, instead of using plain English, you know they are doing something they don't want us to understand.” The term quantitative easing in layman’s terms just means that the Fed will print more money out of thin air. What could possibly go wrong? Well, for starters, the value of the U.S. dollar will continue to decline and it could set the stage for hyper-inflation.

Of course, the first two rounds of quantitative easing have failed miserably to stabilize the economy. This should have signaled that pumping new money into the economy is just not the solution. But Fed officials who have refused to accept reality continue to run the printing processes on overtime. After QE3 fails—and it will—we might as well expect to see QE4, QE5 and so on until the dollar is literally worthless.

The actions of the Federal Reserve have a dramatic impact on the lives of every single American. The central bank essentially controls the value of the money that we have in our pockets. QE1 and QE2 can be blamed in large part for the skyrocketing price of food at the grocery store. The same supply and demand rules apply to money. The more dollars we have in the circulation, the less valuable the money becomes. The Fed is a main reason why it’s costing us more dollars to fill up our gas tank nowadays.

For decades, Rep. Ron Paul (R-Texas) was the lone voice in Washington speaking out against the Federal Reserve. He writes that “the inflation tax, while largely ignored, hurts middle-class and low-income Americans the most. Simply put, printing money... dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real — the individuals who suffer most from cost of living increases certainly pay a ‘tax.’” QE1, QE2 and QE3 are nothing more than stealing wealth from the people through the hidden tax of inflation.

Our Founding Fathers would surely be outraged by the existence of the Fed. These great men believed in a limited government that was held accountable to the people. The Federal Reserve, which is generally regarded as a quasi-governmental entity, has less oversight than even the Central Intelligence Agency (CIA). The most powerful central bank in the world makes all of its decisions without even a single vote from our elected representatives in Congress.

You can bet that the Fed is up to no good behind closed doors. Due to a provision under the misguided Dodd-Frank financial overhaul law, the Government Accountability Office (GAO) conducted a one-time, watered-down audit of the central bank back in July. It gave the American people their first peek into the central bank’s books but prevented investigators from peering into their deliberations on interest rates and the most crucial transactions of the Fed. We still need to pass a true audit the Fed bill like Ron Paul’s Federal Reserve Transparency Act of 2011 that would require comprehensive audits on a regular basis.

The first ever audit revealed that the central bank “loaned” out $16 trillion at a zero percent interest rate to corporations and banks around the world during the height of the financial crisis. To put that number into perspective, the Gross Domestic Product (GDP)—the value of all economic activity within a country— of the United States is only $14.12 trillion. It’s no wonder that the Fed is desperately trying to protect their privileged secrecy. 

The Fed used to be the giant elephant in the room that nearly everyone ignored. We can see the political tide shifting since it has suddenly become popular to criticize the Fed. I have a strong feeling that the rise of the Ron Paul phenomenon has something to do with it. The author of the book End the Fed just might be onto something. A true audit is the first step to letting the American people know what’s going on with their money. The next step is to abolish the Federal Reserve System.

David Moseley

The witness of the devastation of Imperialism!
As we sit around watching our Country and World economies go to ruin I find it odd that more people are not trying to understand the reasons of this destruction. I am a Republican by heart, not because the Republicans are the greatest political party ever but because they are the best choice I have at the moment. I am also capitalist by nature, not because of what I see in capitalism today but because I understand the word capitalism and also understand that capitalism is the only true form of free market and freedom we have available.
The Deception!
The problem I see today with capitalism is the use of the word. We use the word capitalism loosely to describe economies that actually have very little or nothing to do with capitalism. This has confused the masses and transformed a word from its original meaning to something different.
CAPITALISM; an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit.
Breaking down the definition is important! It gives us a better understanding of how the engine of economics works. (Privet Ownership is very important to understand). It tells us that government intervention other than maintaining and policing the moral and ethical laws of obligation set aside for quality control and standards are and should be the only intervention governments have in a true capitalist economy. Of course we understand that zoning and pollutants are a strong factor in ethics regarding encroachment and public safety which should be a taxable permission or (Permit). This leaves companies the right to come and go as they please regarding their status to the discretion of the owner or board. It also prevents the government from intervening in any type of assistance due to unforeseen or intentional aggressiveness caused by selfishness or greed. As a company fails it makes way for other people to gain the chance to obtain the ability to succeed in that field. This is where (Free competitive Market) takes shape in the definition. Government intervention such as TARP is in most part a form of socializing of the market. We will take a look at that later in the conversation.
Looking at most economies around the world I see a socialistic model of economics in the labor force, where the governments have direct intervention of the economic operations. This changes the dynamics of the word capitalism to a whole new meaning. We should call the new word (socialized-capital). This describes the dynamics of the economy far better than simply capitalism. It also justifies the actions of the word in a better description.
I’m going to place my own personal meaning to the word Socialized-Capital since it is my word and my understanding of present economies in the world.
SOCIALIZED-CAPITAL; Socialized = transitive verb to place something under public ownership or control.
Capital = material wealth in the form of money or property.
The reason I am calling the economy socialized-capital is because of the vast intervention of governments in prevention of financial collapse.
There must be some reasoning for the governments to intervene in the free market of Capitalism that would make it a responsible action to take.
• As we have mentioned before, government intervention in economics changes the dynamics of Capitalism to Socialism, so why would a government revert to a different method of economics on a global scale and continue to call it capitalism?
• This takes me back to the deception portion of the conversation. As it turns out, most people in the industrialized west consider Capitalism as the main ingredient to a free nation where anyone and everyone has the ability to be wealthy and self sustaining from government control. Or at least independent form government sponsorship. The western world governments have taken advantage of this understanding and continued to use the word capitalism to convince the public that they remain free from the oppression of a government controlled market (Socialism) as they slowly assume total control of the financial wealth of the world.
• This brings up a new question for discussion. (if we are converting to socialism, how do independent people still maintain in control of their wealth?)
As a façade, they (Company Owners) feel as though they have total control of their wealth but mechanically speaking, they only have partial control due to stiff regulation and unrepresented taxation.
Going back to my title; The witness of the devastation of Imperialism!
Eastern Bloc countries operate on a different type of economics. Imperialism is the model of choice but confusingly called Socialism. Why Socialism? Socialism is considered a civil model of economics in most of the western world. It allows free trade to countries that ignore our ethics and morals that regulate the economies of the western Democracies. Most countries we trade with in the Eastern Bloc are Imperialist in mechanics of their economy which would make the transaction treasonous. So we choose to call their economies Socialist.
I’m not convinced I would call this greed that has allowed us to adopt our trade habits to fit the global economy but more a competitiveness to Imperialism. Which is why we are witnessing the devastation of Imperialism on a global scale.
This Imperialistic competitiveness has devastated human civilization many times over yet we still prefer this model of inhumane governance to dictate our lives over and over.
You would think when we (Settlers of the new world) fought for freedom from the oppression of this very Imperialistic nature we would learn the lesson of how tyrannical this model of governing through economics is!
5000 years of trying to get it right and we still revert back to the same oppressive and tyrannical government control, practiced by the Pharos of ancient Egypt. Go figure!!!

Paula Rea

David M... re your last 6 sentences... you group ME in the last 6 sentences by the term "we"...I beg your pardon, but I do NOT prefer imperialism/socialism as the choice model preferred. Imperialism/socialism grows... it is like a weed, attached to capitalism, because the nature of a MAN ruled by law is to petition someone else- in a governing body, to intervene on the behalf of the 'common man' when a capitalist business stops being ruled by morals and becomes ruled by greed...bringing into play your government regulations, which are handed out by men, and greed, again, is present, since there are and always will be, men (and wo-men) who are ruled by greed rather than be ruled by morals. Morals, it can be noted, are most often usefully dictated by GOD, in a body of people, which is why many men (and wo-men) refuse to believe in GOD... -they simply cannot see the reason they need to abide by rules from a GOD, and not rules by a man, when man can be manipulated to their advantage, and GOD, or a GOD cannot be. If we as a people, like our Forefathers intended, were ruled by GOD, and man was only used to monitor the adherence to GOD's rule(s), not to create man's own rules to govern by, we would THEN be able to live under a capitalist government.
The lack of GOD opens up a void, that is inevitably filled by laws of man, such as taxation...

christian kowalski

Right on target-again.Somebody really needs to go.

teda's picture
Ted Abram

Total transparency is essential for a free society. It is immoral for any institution to secretly operate. The fed must be fully audited and its transactions must be open to scrutiny by all.