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The National Inflation Association today released the following statement to its members:

“Most people in the U.S. want to go back to when the ‘times were good,’ not realizing that the ‘good times’ they remember were nothing but an illusion created by the Federal Reserve’s artificially low interest rates. The finance wealth created in the U.S. during the past decade was phony and all Americans will soon pay for it by suffering through massive price inflation.

Today there are huge reserves of dollars sitting at our nation’s largest banks collecting interest. When price inflation in the U.S. reaches a level that is higher than the interest this money collects, the banks hoarding these dollars will be forced to lend this money and seek a higher return. As this money gets lent out, we will see an increase in the multiplier effect where each dollar could transform into ten dollars or more.

Federal Reserve Chairman Ben Bernanke believes that by printing money he can generate prosperity, when in fact, prosperity can only be achieved by the production of goods that we can export to the rest of the world. Printing money transfers wealth from the middle class to the rich while taking away our freedoms. Inflation has occurred after every major crisis in U.S. and it has always led to bigger government, more regulations and greater centralization. In Germany, hyperinflation led to the rise of Hitler.

The U.S. already saw one instance of hyperinflation beginning in 1775 when the Continental Congress issued a paper currency called the continental which eventually became worthless. This is why the U.S. Constitution said only gold and silver were to be used as legal tender, because they saw what happened in the past and anticipated what would happen in the future with another fiat currency. Debased currencies always fail over the long-run because the government isn’t smart enough to know how to manage money better than the free market.

Gold was chosen as real money by the free market, not the government. Gold is the best gauge of the strength of the U.S. dollar. With gold prices approaching a new all time high, we are seeing that the world has no confidence in the U.S. dollar. The only way we can ever go back to having a strong economy, peace and prosperity is by returning to sound money that is backed by gold and silver. A sound currency would force our government to live within its means. Without sound money, our country may not survive when the artificial high we are feeling right now begins to wear off. The entire system could come to a complete halt.

The Federal Reserve has given Congress the power to spend endlessly with no limit by printing the money needed to fund unnecessary wars, bailouts and stimulus plans that steal from the savings of all Americans. Politicians today are working with the Federal Reserve to dilute the value of our money. Since the creation of the Federal Reserve in 1913, $0.95 of every $1 saved by Americans has been stolen. Some might consider this dilution of our savings to be a crime, yet there is still no widespread outrage about it.

Source: National Inflation Association