LibertyMinute December 23 2013

One hundred years ago today, a self-perpetuating elite embedded in international finance and the highest reaches of the US political system created the Federal Reserve ? an officially sanctioned counterfeiting operation.

The advertised purpose of the Fed was to stabilize the economy and preserve the integrity of the U.S. Dollar. However, since December 23, 1913 ? the day Woodrow Wilson signed the Federal Reserve Act ? the dollar has lost more than 97 percent of its purchasing power.

Since August 1971, the dollar has been a pure fiat currency, which means that it cannot be redeemed in actual money, such as silver or gold. As economist Paul Krugman observes, people accept the dollar as legal tender because it is backed by men with guns. Because it has been the world?s reserve currency, the true effects of the Fed?s inflationary policies have yet to be felt in this country.

The cumulative inflation rate since 1913 has been 2254.2 percent -- a figure that places the Federal Reserve in the same hyperinflationary category as the central banks responsible for destroying the currencies ofWeimar-eraGermany and contemporaryZimbabwe.  This gives us some understanding of what will happen to this country when the rest of the world abandons the Fed?s debased dollar, as it eventually will.

Let us take back the liberty wherewith Christ has made us free.