CONTROLLING INFLATION WITH INTEREST RATES (take 2)

(This is the revised version.)

We keep hearing it repeated that the only way to control inflation is with interest rates.

Elizabeth Warren recently debated the issue of controlling inflation with FED Chairman Jerome Powell

He steadfastly asserted that raising interest rates was the way to control inflation, while Warren insisted that it would hurt Americans.

She challenged him to cite when raising interest rates had not harmed Americans, and Powell could not offer an example.

While I totally agree with her diagnosis, her prescription, (increasing federal spending,) is as ridiculous as raising interest rates.

Let’s cipher for a moment. What happens when interest rates are increased?

As they increase, all manner of resources is stifled, including research, development, and human resource revenue.

This results in a reduction of products and services, both quality, and quantity. This reduction of supply increases the value of existing products and services.

This contributes to the loss of employment and further rising of prices.

As people leave the workforce, incomes are lost, welfare rolls increase, (requiring higher federal spending on welfare,) and a further loss in productivity.

This loss of productivity contributes to even higher prices. Higher prices contribute to higher taxes, ( an 8% sales tax on $100 is $8.00, while an 8% sales tax on $75 is only $6.00.  [example] So as the price of an item increases from $75 to $100, the cost to the consumer increases from $81.00 to $108.00)

These rising prices and taxes cause a reduction in lifestyle and often lead to increased crime.

Increases in crime require more law enforcement, and legal costs, again compounding costs to the taxpayer.

Increasing costs of government resources increase the tax burden on society, and round and round we go.

There is no way that raising interest rates is able to control inflation, especially since the true cause of inflation IS fiat currency.

The only way to control inflation is to stop inflating the currency, (which is really the devaluation of the currency.)

Masterminds can blow smoke as long as they want, but inflation is a mathematical issue, and it can only be addressed mathematically.

The devaluation of money is the cause, and revaluation is the cure.

REPEAL THE FEDERAL RESERVE!

If we hope to restore American prosperity, we must reestablish the biblical, and constitutional standards of Article 1, sections 8, and 10. The framers of our Constitution did not take this matter lightly, and the only way for these standards to be legitimately altered would have been by an Article V amendment. An amendment that has never been created.

The Federal Reserve is utterly unconstitutional, irrational, unrighteous, illegal, and contemptuous of the American people’s property and rights.

God bless you, Dave

“Duty is ours, results are God’s” John Quincy Adams