Inflation Won't Bring U.S. Back to 'Good Times'

FORT LEE, N.J., Oct. 5 /PRNewswire/ -- The National Inflation Association
today released the following statement to its http://inflation.us members:

"Most people in the U.S. want to go back to when the 'times were good,' not
realizing that the 'good times' they remember were nothing but an illusion
created by the Federal Reserve's artificially low interest rates. The wealth
created in the U.S. during the past decade was phony and all Americans will
soon pay for it by suffering through massive price inflation.

Today there are huge reserves of dollars sitting at our nation's largest banks
collecting interest. When price inflation in the U.S. reaches a level that is
higher than the interest this money collects, the banks hoarding these dollars
will be forced to lend this money and seek a higher return. As this money gets
lent out, we will see an increase in the multiplier effect where each dollar
could transform into ten dollars or more.

Federal Reserve Chairman Ben Bernanke believes that by printing money he can
generate prosperity, when in fact, prosperity can only be achieved by the
production of goods that we can export to the rest of the world. Printing
money transfers wealth from the middle class to the rich while taking away our
freedoms. Inflation has occurred after every major crisis in U.S. and it has
always led to bigger government, more regulations and greater centralization.
In Germany, hyperinflation led to the rise of Hitler.

The U.S. already saw one instance of hyperinflation beginning in 1775 when the
Continental Congress issued a paper currency called the continental which
eventually became worthless. This is why the U.S. Constitution said only gold
and silver were to be used as legal tender, because they saw what happened in
the past and anticipated what would happen in the future with another fiat
currency. Debased currencies always fail over the long-run because the
government isn't smart enough to know how to manage money better than the free
market.

Gold was chosen as real money by the free market, not the government. Gold is
the best gauge of the strength of the U.S. dollar. With gold prices
approaching a new all time high, we are seeing that the world has no
confidence in the U.S. dollar. The only way we can ever go back to having a
strong economy, peace and prosperity is by returning to sound money that is
backed by gold and silver. A sound currency would force our government to live
within its means. Without sound money, our country may not survive when the
artificial high we are feeling right now begins to wear off. The entire system
could come to a complete halt.

The Federal Reserve has given Congress the power to spend endlessly with no
limit by printing the money needed to fund unnecessary wars, bailouts and
stimulus plans that steal from the savings of all Americans. Politicians today
are working with the Federal Reserve to dilute the value of our money. Since
the creation of the Federal Reserve in 1913, $0.95 of every $1 saved by
Americans has been stolen. Some might consider this dilution of our savings to
be a crime, yet there is still no widespread outrage about it.

Think about the millions of lives that have been lost in Iraq for a war that
wouldn't have been possible if it wasn't for the Federal Reserve inflating our
currency. Without a printing press, diplomatic solutions would be used to
prevent war. Wars do not help an economy, they destroy wealth. They are also
used to distract from economic problems.

The U.S. government created all of the problems it is now trying to solve. It
is the government's reckless policies that have forced Americans to become
dependent on government entitlement programs. The solution to our current
problems is to allow the free market to work for itself, but unfortunately
George Bush ruined the name of the free market and today the blame for all of
our problems is being placed on the shortcomings of free-market capitalism.

We have not had a free market in the U.S. for decades. If we had a free
market, banks would be allowed to fail. If banks knew they wouldn't get bailed
out, they wouldn't take unnecessary risks and would compete against each other
in order to preserve wealth. Manipulating the supply of money and interest
rates creates the opposite of a free market system, so the free market in no
way can be blamed for the mess our country is in.

It is impossible for central banks and politicians to know what the proper
interest rate should be. The Federal Reserve's attempts to micromanage our
economy postpone inevitable consequences while making them much worse. By
allowing large corporations to privatize profits and socialize losses, they
have delayed the pain and suffering that must occur in order to rebalance the
economy. The latest false signals being sent by the Federal Reserve of an
economic recovery are only building the imbalances in our economy to a
breaking point of total collapse.

Until the Federal Reserve no longer has the power to inject trillions of
dollars into economies around the globe without revealing who benefits, a
short-term mindset over long-term outlook will reign supreme in the U.S. with
Americans enslaved to their huge credit card debt, student loans, automobile
loans and mortgages."

Please spread the word about NIA and have your friends subscribe for free at
http://inflation.us

About us:
The National Inflation Association is an organization that is dedicated to
preparing Americans for hyperinflation. The NIA offers free membership at
http://www.inflation.us and provides its members with articles about the
economy and inflation, news stories, important charts not shown by the
mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul,
Peter Schiff, and others; and profiles of gold, silver, and agriculture
companies that we believe could prosper in an inflationary environment.

Contact:
Gerard Adams
1-888-99-NIA US (1888-996-4287)
Staff
Editor@inflation.us

SOURCE National Inflation Association

Gerard Adams of the National Inflation Association, +1-1-888-99-NIA US
(1888-996-4287), Staff, Editor@inflation.us