Letter: All better

From Brady Ernst
Dassel (formerly Lester Prairie)
We have all been told that the recession is over, and the Obama administration’s actions have saved us all from a massive global depression that would have crippled the world’s economy. The bank bailouts are being paid back, sort of. Unemployment, while still at 10 percent, (but actually is closer to 17 percent), is slowing. Black Friday spending was up from the previous year. So, the messiah kissed our boo boo, and made it all better.
Yet, none of the steps to cure our real problems have actually been taken. We have just put a Band-Aid on our hemorrhaging artery.
Our money has been devalued year after year for about four decades now.
Nixon, in all his corrupt wisdom, broke us away from the government checking gold standard for floating money that has a value determined by federal counterfeiters.
When our inept government needs more money to send to third world despots to prop up their failing governments, we simply print more Benjamins and ship the value of our savings overseas.
When our country wants to declare war to secure stability for our corporate elite, we fire up the presses or tap China for the cash, again devaluing our money.
If our money were tied to gold, the value would have stability and growth. Instead of yearly devaluation our dollars value every year, we would gain value. This puts stability into our economy and forces integrity in government spending.
Printing more money would not be an option, nor would borrowing, so fiscal responsibility would return.
In a true capitalistic system, goods should lower in value as money’s value grows and as more goods become available.
We have not had a true capitalistic system in a very long time. We may be paying less for televisions, but how about food?
Secondly, not only is our money supply dictated by unelected federal counterfeiters, our interest rates are set by the same folks.
Interest rates should be controlled by the market, the same way the price of goods should be controlled.
This is the way a true free market would operate. If people are not spending and saving more, there will be downward pressure on interest rates. Also, as more people save, banks have more money to lend, so there is downward pressure on interest rates.
As demand shifts and people begin to borrow, it puts upward pressure on interest rates. As interest rates go up, more people will go back to saving.
This cycle controls where interest rates are, instead of an appointed federal employee with no repercussions for decisions.
These two relatively simple steps would eliminate the need for the Federal Reserve and return the money supply control where the Constitution puts it, with Congress. This likely would eliminate the business cycle that we all pay the price for.
The boom and bust cycle is not how a free market should work. It is created by investment going where the economy does not want it.
This occurs when Bernanke and company decide to artificially create a boom and lower interest rates, so money dumps into sectors that the economy is not supporting.
Once they pull back the artificial boom in money supply, the bust comes.
This is a cycle that was all but guaranteed ended with the Federal Reserve Act in 1913. Since then, we have had a recession in just about every decade.
Government and federal bankers cannot fix the business cycle – they created the business cycle.
Jefferson feared banks more than standing armies for a reason, and I tend to put a lot more faith in our founding fathers than I do Ben Bernanke.