Government Money Creation Inflationary?

Extract from: Presenting the American Monetary Act (as of July 18, 2009)

The actual history of government control over money shows a far superior record to private control. There is a mythology – a reigning error – that government issued money has been irresponsible, and inflationary. But this is the result of decades, even centuries of relentless propaganda, and is contradicted by the historical facts. The Continental Currency is attacked, without discussion that while our government authorized $200 million and issued $200 million (plus replacement notes), the Brits successfully counterfeited untold $billions. They did the same for the French Assignats – the details became public when the counterfeiters sued each other in the English courts.

The American Greenbacks are smeared as worthless inflation money when in fact our government authorized $450 million and printed exactly $450 million; and every greenback eventually exchanged one for one with gold coinage – but very few people bothered to exchange them!

The German hyperinflation is cited by the private money gang without pointing out that the German Reichsbank was privately owned and controlled, or that the hyperinflation began the month that all governmental influence over the Reichsbank was removed on the insistence of the allied occupiers. These and other cases are described in The Lost Science of Money book.

The specter of inflation will be raised against any proposal that our government fulfill its responsibility to provide the nation’s currency. But again this is a knee-jerk reaction resulting from the same propaganda. The reason that inflation is avoided is that real wealth is created with the money spent into circulation on infrastructure, and education and health care. It results in the provision of real goods and vital services and the existence of these serves to control inflation. It is mainly expenditures for warfare that are inflationary, because not only is the money not directed to creating values for life, it actually destroys those values, while increasing the money supply, and THAT will always be inflationary.

It will be argued that the banks must have the money creation privilege in order to survive, and removing it would destroy banking. But that is absurd. Banking has already destroyed itself! The Savings and Loan industry operated for many decades on principles close to what this Act advocates. We are not out to destroy banking – it’s a necessary part of modern society. However, the folly of our present system is self evident. There’s nothing in the dominant financier’s background, training or philosophy that qualifies them to be above our constitutional system of checks & balances. Look at the mess they have created around the World!

“Over time, whoever controls the money system controls the nation.”

Stephen Zarlenga, Director,

American Monetary Institute, P.O. Box 601, Valatie, NY 12184

[email protected] 518-392-5387