Good day Congressman Grimm –
I am writing to inquire what your plans are to reign in inflation and protect the US currency. As you may be aware, the Federal Reserve is engaged in round two of Quantitative Easing. Commodity prices have sky-rocketed as a result of this unabashed money printing.
The bottom line is this: The people of the United States are having their wealth and wages robbed from them. When the Federal Reserve prints money, under the moniker of Quantitative Easing, the dollar is openly devalued in terms of goods and services, as well as in terms of other currencies. When commodity prices are up 35%+, people are finding their cost of living up 35%+, with no wage increases. We are being robbed, plain and simple.
Article 1, Section 8, of the US Constitution clearly states among the sworn duties of Congress:
– To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
– To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
Mr. Grimm, I am urging you, as a duly elected member of Congress, to stand by your sworn duty and take action against the Federal Reserve’s Easing policies. The American People need their representatives to protect them from the crushing consequences of a significant inflation of the money supply. Even more so, we need Congress to protect us against a wholesale collapse of the US Dollar. This possibility, far from a fantasy, has never been closer to reality in the history of America.
I await eagerly your response and action plan.
SI Libertarian Party
P.S. Ben Bernanke’s own words from longer speech here, http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm —
“The conclusion that deflation is always reversible under a fiat money system follows from basic economic reasoning. A little parable may prove useful: Today an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject’s oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.”
“What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”