Patriot,

Despite the Federal Reserve raising interest rates, price
inflation just keeps on coming.

As I explain in my latest column, the Fed will never be able to
"get it right" - because the right thing is honest money and a
free market, for which no Fed is necessary.

If you haven't already seen my column for this week, it's
reproduced below.

And of course, be sure you sign the petition to Audit the Fed and
encourage others to do the same.
[link removed]

-Ron Paul



Inflation Even Hurts the Penguins

A recent video shows penguins at a Japanese aquarium rejecting
the cheap fish the aquarium has substituted for the higher
quality fish the penguins are used to receiving. The reason the
aquarium switched fish is because rampant inflation has made it
impossible for the aquarium to afford the higher quality fish.
The penguins' reaction illustrates the flaw in governments
claiming that even if inflation makes it impossible for you (or
penguins) to eat steak (or higher quality fish) your quality of
life has not been diminished as long as you can afford hamburger
(or cheap fish).

Minimizing the impact of inflation by taking a "let the penguins
eat lousy fish" approach is the basis of the "chained CPI" that
is one of the ways the government underestimates price inflation.
According to John Williams of Shadow Government Statistics, the
real inflation rate (calculated without the government's
"modifications") is over 15 percent! While they continue to
understate the true rate of price inflation, government officials
have been forced to admit at least that price inflation has
reached levels not seen in forty years.

This has led the Federal Reserve to raise interest rates. But, so
far, the Fed's rate increases have not stopped price inflation.
This is why the Fed's next rate increase may be a rare full
percentage point increase. Yet, even if the Fed raises rates by a
full percentage point, rates will still remain well below what
they would be in a free market. The Fed cannot raise rates
anywhere close to market rates because doing so would make it
impossible for debt-ridden consumers, businesses, and the federal
government to manage their debt.

Fear of causing the bursting of the many bubbles it has created -
especially the federal government debt bubble - means the Fed's
efforts to halt price inflation will fail. However, the Fed's
actions will increase unemployment and obstruct economic growth.
This will lead to, if it hasn't already, a return to the 1970s
phenomenon of "stagflation," although this time it will be even
more painful.

The problem with the Federal Reserve is not that it pursues "bad
policies." The problem is the very existence of a secretive and
unaccountable central bank with the power to manipulate the money
supply and interest rates. Money's function is to provide an
objective unit of account, so market actors know the value of
goods and services. When the central bank manipulates the money
supply, it arbitrarily changes the value of money, making it
impossible for market actors to determine those values. The Fed's
manipulation of interest rates also creates economic chaos by
distorting the signals sent regarding economic conditions. This
leads to widespread malinvestments, resulting in booms followed
by busts. Since this system leaves elements of the market intact,
it can survive and even appear to thrive for an extended period
of time. But eventually the fiat money system will collapse.

Since the fundamental flaw with the Federal Reserve is its very
existence, reforms, such as making the Fed follow a rules-based
policy, will not "fix the Fed." The only way to return to a
rational economic system is to end the Fed. If there is not
sufficient support to end the Fed, Congress should still audit
the Fed and create competition by repealing the legal tender laws
and ending all capital gains taxes on precious metals and
cryptocurrencies.

***

Sign and Share the Petition to Audit the Fed!
[link removed]

And after you've signed, please support our common cause with a
contribution.

Click here to chip in - whether you can give $25, $50, or $100
today, your support keeps us going.
[link removed]

If you'd prefer to donate via PayPal, please click here.
[link removed]


The mission of Campaign for Liberty is to promote and defend the
great American principles of individual liberty, constitutional
government, sound money, free markets, and a constitutional
foreign policy, by means of education, issue advocacy, and
grassroots mobilization.

This message was intended for: [email protected]
You were added to the system June 27, 2019.
For more information please follow the URL below:
[link removed]

Follow the URL below to update your preferences or opt-out:
[link removed]

To unsubscribe from future mailings, send an email to mailto:unsub-69319828013-echo3-ABE6D2C014D3C9CFEEEE6F36467FB9F1@emailsendr.net?Subject=Unsubscribe&body=Please%20remove%20me%20from%20further%20mailings
with "Unsubscribe" as the subject line.



----Powered by Paramount Communication----
[link removed]