In the early ’40s a group of prisoners were forced to participate in a secret counterfeiting project spearheaded by the Nazi SS called Operation Bernhard.
The plan was to flood the British economy with fake bank notes with the goal of destroying the currency (i.e., inflation). A similar project was developed in parallel for the American dollar.
However, despite the attention that this project and endeavors like the North Korean “superdollar” have attracted, one tax-financed organization essentially pumps the economy with billions of notes each year: the Federal Reserve.
Yet, rather than litigating this criminal action, the perpetrators are given accolades and are erroneously viewed as wise sages. It is institutionalized counterfeiting by any other name and the only effective solution is the separation of state and money.
Note: both the Mint and BEP are separate entities in and of themselves, however they are arguably aiding and abetting the Fed which uses creative accounting to create credit out of “thin air.”
See also:
The Case for Counterfeiting
What Has Government Done to Our Money?
On the Manipulation of Money and Credit
A Chicken In Every Pot And A Minting Press On Every Desk
Who benefits from inflation?
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Excellent post.
I was watching a special on the October 1987 stock market crash last week, and they mentioned the FEDS “adding liquidity” which seemed like so much fraud and not actually solving the problem. They merely compounded it by adding theft of more buying power. Yet such fiscal policy seems to be the policy of the land since the inception of the Fed.
I wouldn’t mind knowing what economic ramifications between the 1929 and 1987 crashes? Why didn’t the 1987 cause a depression? Or it did but the costs were socialised or something? Was the 1929 crash mostly a case of ‘moral hangover’ from shoddy investing such that even if there were no laws inhibiting business and trade a lot of people would have still suffered but they were the ones taking advantage of a bubble whereas those who had stayed out of the bubble would have been mostly unaffected?
The 1929 Crash was not a mere recession. It would’ve been, but there was a lot of monetary mismanagement involved, both before and after the recession. That is to say, it was an unnecessary disaster. Policies meant to “cure” the Depression did as much to cause harm as those that led to it. Monetarists and Austrians agree on this much; they just disagree on what the Fed should’ve done.
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