Bernanke Threatens To Slow Imaginary Money Creation: Markets Panic….But Is it too late? economic damage Already been done! ( Economics )

By Charles Novitsky  Non-Credentialed Economist

This week the 12 members of the federal reserve bank begrudgingly announced an end to their gravy train of money printing, or more accurately artificial money creation through bond buying with imaginary dollars. The creative name for this bond and asset buying is misleadingly named “Monetary Easing”, a term that never existed until recent.

As predicted, the stock market lost value, because investment experts know that this imaginary money creation is one of the major causes of inflation. Inflation, where costs of most products continually go up in price, and cost more,  like food, cars, college, doctors and clothing. This rising cost problem discourages people from saving, because the value of the saved money shrinks instead of growing. Thus granny, our seniors, and everyone else must resort to buying risky wall streets stocks that can lose them money and their life's savings. Even worse, in trying to counteract the shrinking dollar, we are taxed on this inflationary money. Perhaps this is one reason Washington loves inflation.

Another way to look at it is that Federal Reserve Bank policies cause all kinds of side effects on stocks, home ownership, prosperity, and even job loss. Not only is it a valid question if the Federal Reserve Bank should be allowed to continue tampering with the economic engine of society, but how much damage have they already done. Wouldn't it be nice if we could make Washington and the Federal Reserve Bank atone for past deeds, and repay us for the lost prosperity caused to each and every man, woman, and child in America. Big deal if they stop tomorrow, a bank thief may stop his crime spree tomorrow as well, but that doesn’t mean we forgive him for the past. But We can probably predict, that soon, another excuse will be given to us by Washington why they must print more money for our own good. They never mention it is really for Federal government's good, so they can make it easier to pay back the $17.2 trillion dollar debt created by our fat cat politicians spending sprees.

The Federal Reserve Bank was created 100 years ago in 1913, so this is the 100th year anniversary of the idea that Washington can manage the blood supply of our economy and prosperity. It is this prosperity that gives everyone a job, food on the table, and goodies on the store shelves to buy. Americas favorite hobby might be when we go on our weekend shopping sprees. Tampering with this blood supply is quite dangerous economically. Many of our worlds freest democratic countries have collapsed from interfering with money and the economy. According to Economists Hubbard and Kane in their book titled "Balance", mighty Rome fell soon after inflating their money, and ironically creating a welfare state, and entitlements to keep the voters happy. Other economists such as Milton Friedman PhD, lectured that it conceited of  Washington to believe it can control the flow of money and protect it value, when they actually harm our trust in money. Professor Friedman also taught us the Federal Reserve Bank not only failed to prevent 1929 depression and its job loss, they actually made it much much worse. ( professor Friedman's Depression lecture on YouTube )

So why else does Washington love inflation? Brilliant economists have been debating with each other for decades whether or not an inflationary money system is good or evil. Sadly, Washington prefers to hear those economist that tell them what they want to hear--that its good to print more and more money, and good to spend-spend-spend. Money is the blood supply that allows Washington to keep on growing. Unfortunately like other parasites that grows at the expense of their hosts, the bigger Washington gets, the more it needs to feed off the workers and business, and the harder it becomes for new business to start up, and create more jobs by hiring more people.

Americans pay a steep price for these inflationary shenanigans by the federal reserve bank in other ways. Perhaps one of the most serious is invisibly taking money and food out of the pockets of the poorest Americans, and even depriving them extra potential purchasing power with each new paycheck, here's how that happens. In a economy thus puts its wealth into a voucher system, like the dollar, everyone gets out what they put into the system, with a fixed amount of vouchers, like gold coins, the value of our value, or slice of the pie, goes up, as the economy grows, and as the population grows bigger with time. these vouchers, a type of receipt representing what we have contributed to the economy remain the same in a normal fixed(stationary commodity ) money system. That’s why gold has been used for thousands of years as the fixed carrier for wealth. to tamper with this fixed value is economically dangerous for jobs and prosperity, and to print extra receipts for wealth is very similar to counterfeiting money. legalists say when the government prints money its not counterfeiting, and of course that’s exactly what Washington has conveniently decided to believe.. but it causes the same result for readers of this column.
The question is how much damage has the fed already done. do we need to make them admit accountability and responsibility for the past damage to the economy.
The federal reserve bank, officially known as the federal reserve system, was created by Washington in 1913, by the federal reserve act. The problem is that the constitution gives Washington the power to coin money, but no authority to CREATE money, a big difference... Coining money means taking gold or silver, and stamping its value on it, usually with a pretty design. Thus everything Washington winks the fed into doing is unconstitutional according to constitutional scholars like woods and linguini.
the fed is guilty of the following past offenses
manipulation of interest rates cause production bubbles that multiply job loss, unemployment, and toxic malinvestment, by individuals and businesses
manipulated interest rates and imaginary money creation fuel inflation, which coerces people, and businesses to resort to investment gambling to keep their assets from shrinking
inflationary strategies deprive every worker from getting an invisible raise each paycheck
Furthermore, according to economists Schiff, block, Solow, and others everything the fed is doing is financially and economically unkosher  Yes, it is likely too much damage has already been done since 1913. So is it time to stop the game.. it is time to stop the printing presses, and end this politburo called the federal reserve bank

Sort of like the voodoo doctor that doesn’t know what he or she is doing, and actually make the health problem worse.