HERBERT G PETERS
Andrew Jackson Democrat
Candidate for US Senate, California
Constitution; Article 1, Section 8, Clause
Congress shall have power to borrow Money on the credit of the United States;
The founders believe in borrowing money; as
Can their be
a crime involved in borrowing?
The “banks work with a reserve;”
generally the reserve requirement is 10%. The effect of the reserve is that
the bank creates money in the process of making loans. As stated in the
video, for each $100 deposited, $900 is created (or allowed to be created).
Inflating the money supply is “inflation.”
Increasing the supply of money in the bank
loan process has been happening since our beginning as a nation.
Inflation can cause great hardship. Some
people have wrongly been robbed of all their wealth because of bank runs.
Because of inflation - about every 5 years,
there would be a financial
panic. Sometimes inflation leads to a bank run when people become weary
of one or more of the banks ability to repay deposits and they would line up
to withdraw all the money from their account. The bank, after emptying their
vaults would declare bankruptcy; costing most customers lost all of their
Caution, the general practice for banks is
to loan out money so no bank can survive a run if all its customers call for
The hope is that the economy will always
grow, so it is reasonable to design the financial system so that prices are
stable. Problem is, almost always money is created too fast and the monetary
inflation exceeds the growth of goods and services. Raise the reserve and
lower the inflation.
Nothing is perfect but, we could do better.
In the 1930s the congress created the Federal Deposit Insurance Corporation
(FDIC) that was meant to protect most bank deposits in the event of a bank
run. This is an attempted protection from the bank run; not a fix of the
The congress has the power to punish
counterfeit; it could declare the spread sheet money created by the banks in
the loan process counterfeit; that would end inflation.
Inflation is very bad for the people and
very good for the government, so inflation stays. One example: a person buys
a business that costs $10,000 in 1945 and the heir sells that business 60
years later for a million dollars. Capital gain tax costs the heir about
$150,000 or 15 times the original business purchase price.
Inflation is also bad for the people
because the value of their money gets weaker as time moves forward.
“Thou Shalt Not Steal!
Inflation is theft: legal theft. It is a
cancer that should be named ‘governmentitis.’
It is a crime that robs the people. We must remove this cancer; I believe
that the best way is to limit money growth to the growth rate of the economy.
WHY DOES GOVERNMENT HAVE DEBT?
of the people of the 13 Colonies wanted to become independent of their mother
country, Britain. To prepare
for war, they needed financing to arm themselves. Details.
After the war the Congress assumed all the
debts of the war, the debt was first reported at about $75 million in 1791,
fluctuated up and down to a high point of about $127 million (additional funds
for war of 1812) and paid down to zero in 1835 during the Andrew
GOVERNMENT ALSO PRINTED MONEY
Government Also Printed the Continental for
the Revolutionary War Effort
In addition to the borrowed money the
congress printed $242 million in paper money (with a promise of gold or
silver backing)(but the promise of specie backing
was a lie) and during the years of the war the value of the Continental
drifted slowly almost to zero value.
The Civil War’s Greenback fared better than
the Continental but it drooped in value too. (The greenback included the same
note as our current money: This note is legal tender for all debts public
The idea of money is that it represents
value; the risk with paper is it is too easy to lie and say its backed when the resources are not available as
Money is a faith and trust issue.
Is paper money a crime?
Article 1, Section 8 grants power to the
congress to coin money, regulate the value thereof.
Experience has shown that paper money
backed by gold or silver works better than without the backing.
In my lifetime, the government has almost
always cheated on the people. Since the beginning it has allowed
inflation of the money supply, so the gold or silver backed money still
reduces value with the inflation theft.
At about age twenty when I started to
perceive the term inflation, I vaguely recall that the news media blamed
inflation on business or labor.
The Congress is the only entity that
controls inflation, and they also have the power to end inflation. The
economy will work with a fixed amount of money, or a money supply that grows
with the economy. For us the consumer money is a godsend vs. the bartering
Inflation beyond the economic growth is
excessive and is theft and we must end it.
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