Monetary Reform

Henry Ford once said, “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Are you confused by all the talk about monetary policy, fiat money and inflation? You’re not alone. Bankers and politicians have worked hand in hand for many decades to obscure their activities from the public. They hide behind elaborate structures designed to inflate the money supply while creating the false impression that they are looking out for our best interests.

Inflation is a very simple concept to understand: More money = less value. It may seem contradictory but it’s very straightforward.

For illustration purposes, join me on a brief journey of the imagination. One beautiful morning, you wake up and realize that you own twice as much cash as you had just last night. Magic money elves entered your home and bank account and simply doubled your entire cash assets. You’re now twice as wealthy (or half as poor as the case may be).

But you soon realize that the same thing happened to everyone else in the country. The money supply (total amount of money) has doubled! It’s just a one-time event and your regular income remains the same… you just got lucky this one time. It’s okay to dream, so stay with me.

What happens next? If you’re like most people, you probably start spending. You buy things you always wanted to buy but couldn’t afford. You pay back some debts. You buy stocks. In other words, you put the new money into circulation. So do most other people in the country.

Demand for many products increases because a lot more people can afford them now. Consumers are buying so much stuff that some shortages occur. To protect themselves against these shortages, shops and businesses decide to increase their prices. They know that once prices go up, fewer people will be competing to buy the same products, and the situation will be back to normal.

As a side effect of these higher prices, shop owners start earning higher profits than usual. They have more money in their bank accounts, which allows them to increase their spending. They will invest in new stock or expand their business. They might pay out dividends to their investors and bonuses to their employees, allowing these people to buy more products as well. This additional demand puts even more pressure on other shops to increase their prices.

A few months later, prices of almost everything have gone up. Suppliers and manufacturers are faced with the same threat of too much sudden demand from their clients so they too decide to start charging more.

You went on a one-time buying spree and look what happened! Your income stayed the same, but after a few weeks you can suddenly no longer afford the products you used to buy all the time because all prices in the economy have gone up.

Naturally, you demand a higher salary from your employer. If you’re self-employed or in business, you have to charge your customers more money just so that you can maintain your standard of living. Everyone else is in the same situation. Higher prices keep spreading throughout the entire economy, and it’s getting more and more difficult to make a living.

Can you see how this lucky one-time incident which at first seemed so exciting was extremely harmful not just for you but for the entire country? You briefly had a good time but now you’re worse off than before. In our story there are now twice as many dollars in circulation, but your income remains the same and each dollar you earn is worth only about half as much as it used to be. You’re really hoping for those money elves to come back.

As a matter of fact, some people, companies and banks have managed to develop an inside connection to the “money elves”, allowing them to receive new money into their bank accounts whenever they want to. The money is officially a loan (credit), but they know they never have to pay it back… they just “roll it over”, i.e. take up even more debt. With all that easy money in their accounts, and after hearing on TV that stocks only go up and that real estate prices will continue to rise forever, they tend to get a bit lightheaded and start making bad investment decisions. They know that if anything happens to their investments they will be bailed out by the government, so they do not hesitate to take huge risks with their new found “wealth”.

Let’s stop dreaming and look at the reality of things. What if I told you that these “money elves” do exist and that they spring into action not just once in a lifetime, but every couple of weeks? And that they repeatedly give money to their closest friends, but not to you? That prices are going up because the total amount of money in circulation increases, but that you’re missing out on all the fun?

Well, that’s inflation at work. Who benefits from inflation? Only those who are at the top of the pyramid and receive all that new money directly from the source. As you might have guessed by now, the source is the Federal Reserve, and its recipients include the government which “borrows” a lot of new money each year, without any intention of ever paying it back. Another beneficiary these days are failed banks that are being “bailed out” for the good of the “economy”, or defense contractors that receive money to build up our military so we can have a constant presence all over the world and fight never-ending and unnecessary wars. There was even a huge number of small-time beneficiaries who received consumer loans and sub-prime mortgages they would never be able to pay back.

What, then, is fiat money? It’s exactly what we just talked about: money that can be inflated or increased at the push of a button at the say-so of a powerful person or organization. Nowadays most dollars are just blips on a computer screen and it’s extremely easy for the Federal Reserve to create money out of thin air whenever they want to.

If our money were backed by gold and silver, people couldn’t just sit in some fancy building and push a button to create new money. They would have to engage in honest trade with another party that already has some gold in their possession. Alternatively, they would have to risk their lives and assets to find a suitable spot to build a gold mine, then get dirty and sweaty and actually dig up the gold. Not something I can imagine our “money elves” at the Fed getting down to whenever they feel like playing God with the economy.

As you can see, inflation and fiat money are very seductive and beneficial to those at the top, and very dangerous to everyone else and the nation as a whole. That’s exactly what Henry Ford was talking about. He knew that every country that relies too much on fiat money is ruined sooner rather than later.

There is only one possible solution to the inflation problem: Stop creating money out of thin air. But we’re already in such a mess that the only way to have a real impact on the money supply is to increase interest rates so that people pay back their loans and borrow less money from the banks, which decreases the amount of money in circulation. However, higher interest rates might very well crash the economy. So the Fed’s current “solution” to overcoming inflation is… creating even more of it.

Fiat money is a dangerous addiction. Even if the Fed found a way to stop inflation, as long as the current system persists the temptation will always be there to resume pushing the easy money button. That’s why we need to get back on the gold standard and eliminate the Federal Reserve altogether.

But that won’t happen “before tomorrow morning”, as Henry Ford said, or even this year. Ron Paul believes that the first step towards monetary freedom is to allow open competition in currencies. Once gold and silver are allowed as legal tender and can be sold without sales tax, everyone can use them to store their wealth and to pay for the things they want to buy. The Federal Reserve will finally have a very compelling motivation to stay honest and maintain the value of the dollar because if they don’t, they will simply lose all their customers.

Ron Paul has been an advocate of the gold standard and open competition in currencies for many years. He is the Federal Reserve’s most outspoken opponent in Congress and has frequently questioned Alan Greenspan and Ben Bernanke about the Fed’s actions.

Join the Ron Paul Revolution and help us put the Fed where it belongs: into the history books and out of our financial lives.

More Information

Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, the Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.

In this 1988 interview, Ron Paul talks about money, banking and the Federal Reserve, and predicts the current financial crisis.

Show: American Power Structure
Date: August 1988

Explanation of Fiat Money:

Here’s an amazing introduction to the history of the US dollar:

The American Dream Film:

Ron Paul Money Lecture Series — “What is Money?”

  • David


    “…The only proper role of government in the economic realm is to protect property rights, adjudicate disputes, and provide a legal framework in which voluntary trade is protected. All efforts by government to redistribute wealth, or to control or manage trade, are improper in a free society.”

    2.0 Economic Liberty – Libertarian Party Platform


    Yeah, and yet the Libertarian party adamantly objects to a legitimate, legal and constitutional public means of trade, created and managed as a public service to the people by government which can actually be MANAGED and MAINTAINED in circulation to MEET THE DEMANDS OF TRADE and is the ONLY thing which can protect and sustain voluntary trade. Then they protect the “FREEDOM” of “HONEST BANKS” who create NO wealth, to STEAL the population’s wealth, with interest on scarce and finite commodities under exorbitant fictitious values which they call “GOD’S MONEY”, thinking this voluntary trade LOL


    2% of the people think, 3% of the people think they think and 95% of the people want a POLITICAL PARTY to do their thinking for them.


    If the people do not “CONTROL AND MANAGE” their own PUBLIC means of TRADE then will their trade not be “CONTROLLED AND MANAGED” by some PRIVATE means of THEFT ?.


    Thinking that money can be a private business for profit making it a random thing and expecting it to facilitate voluntary trade, which is also a random thing.


    Profit from money, whether by interest or an increase in value, constitutes the theft of another person’s productive effort without returning any wealth to the system in return for the profit, is exactly what makes any economy UNSUSTAINABLE, is the primary REDISTRIBUTION OF WEALTH into the hands of THIEVES which necessitates and exacerbates all further redistribution by their ACCOMPLICES.


    Believing a PARTY when it says they have a way to make 2-1= 2 instead of exercising one’s brains and personal responsibility to figure out that we can add a 1 to = 3 on purpose. Making all believing guilty of complicity of the THEFT and their own destruction, due to their own carelessness and stupidity.


    STOP BELIEVING !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    • Citizen

      Some Truth to what you say..
      The REAL fraud has always been the BANKSTERS who steal the people’s money through Fractional Reserve banking.

      Government fraud and theft is compounded by launching a Central Bank which adds INSULT to the Fractional Reserve Injury. If government is to serve the people, it must not allow a Central Bank much less permit any form of Fractional Reserve currency fraud.

      What they can’t tax away from us, they’ll steal with dilution debasement of the currency. The mistake most all make is thinking that fiat paper currency is money…. far from it. Real MONEY is a STORE OF VALUE.

      You are correct about the “Redistribution of Wealth” into the hands of the BANKSTER ELITES who run our government and our economy.

      Vladimir Lenin said it
      “The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

      Thus in 1913 the Progressive Woodrow Wilson cursed the United States with
      The Internal Revenue Service TAXATION
      The Federal Reserve INFLATION
      the USD has lost 98% of its value with a century of constant war!

      All the while the Political Elite Banksters have been picking us clean of our futures.

      MONEY was, is and always will be a COMMODITY, a tangible material thing that is not printed.
      By now even you must admit that Governments CANNOT print US to prosperity. People make our wealth, no amount of government printing can create wealth. The money printing is simply “redistributing” OUR wealth into the hands of the 1% Elite Political Banksters who are sucking us dry.

      We are losing our Liberty, our Freedom and our Country!
      Hope your doing well!


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    • Citizen

      Hi Blog,
      This site has more comments than any site I’ve come across in years.
      The activities has slowed since Ron Paul was defeated in his run for the Republican candidate.
      But the topic… Honest Money remain a serious issue for America.

      The Banksters and their fiat paper notes are going to crash… get prepared !

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    • Citizen

      Hey Smoothie…
      I think you’re lost, you need to blog on the FED food channel, with Ben and Friends!

      Oh… add some nuts to that drink,
      Chuck U Schumer, Nancy Pelosi and Bite Me Biden should add some real crunch!

      • This is becoming world wide news and as a world we are not happy that people eat people what is wrong once it’s clearly understood which it is then who wants to be around flesh eating canabulis.

    • Stop making the money food it creates a disturbing picture about who is in control of it Canabulis they say no wonder it is in evil hands think about it why not marry in that’s your safety.

  • I really like it when individuals come together and share
    thoughts. Great website, keep it up!

    • Citizen

      Point your friends to this site….
      The debate is raging and needs to get EVERYONE involved.

      Thanks for your feedback

  • Jock

    David makes a valid point that gold standard will result in poverty and hunger for most people and in great riches for the dominant minority, but the mechanism whereby such outcome is certain under gold-money is not adequately explained. Here is a brief summary:

    1. The supply of gold is structurally decoupled from economic productivity (goods and services): the value of gold produced is much less than the value of goods and other commodities produced.

    2. Gold-money supply is in fact abysmally too low to mach the real growth and thus is bound to result is an acutely deflationary spiral, that is, ever more goods being ‘chased’ by a more slowly growing pool of gold-money that is ever more thinly distributed across the economy.

    3. This is associated with falling prices, or rather, with an increasing exchange value of gold-money.

    4. Consequently, one can make risk free profit simply by sitting on the money one already has.

    5. Speculators will simply hoard money and pay ever diminishing wages to the rest, removing thereby ever more money from circulation as a deflationary investment.

    6. This will result in depression and total transfer of wealth from productive members of society to the financial elite. The gold standard is the final assault on our freedom.

    • Citizen

      David was and remains an economic idiot… clueless

  • David

    Hehehehe, well it’s been about 1/2 year since i was on here but every now and then i have to log on and piss off Citizen Rothshild and create more problems for him so here goes:

    Okay, it looks like now that an actual Revolution is brewing, the Bankers are making a final push to save themselves and are attempting to promote this miserable Gold/Silver Austrian economic theory/religion through the Libertarian Party which they own, just as with all the others. Back in 2007-2010 i argued this theory with Citizen Rothschild on here and managed to wipe their ass with his tongue every time, as there is simply no possible way he can demonstrate any form of sustainable economic function nor refute the obvious consequences of such a system which will literally be 98 % of the population starving in the streets within a single year of implementation. It’s all about greed, power and his precious Gold savings increasing in value turning him into a little Banker by stealing profit from those of us who actually do something useful, with money. As far as i’m concerned the Libertarians promoting this, need to be put on trial for Treason along with the Bankers and Corporate Government when we are done, as they are proposing making the sacrifice of all fighting in defense of the Republic null and void by leaving the economic power in exactly the same hands where it rests today, as did Hamilton the first time around as well.

    Here’s a short fast rebuttal i’m re-posting, which to any person with half an ounce of reason will Kill this economic religion completely before it gets started:


    Murray Rothbard, Ludwig Von Mises and Austrian Economics:

    Actually it is the Private Banks that own the state which are ripping off humanity and then when humanity has reached the point of having had enough, along come Murray Rothbard and Ludwig Von Mises proposing that we restrict our trade to the same scarce, finite commodities which established this power of the Private Banks over the state in the first place. Leaving the same Private Banks in place with their Corporate Governments to loan at interest and hoard and tax these finite means of trade out of circulation, leaving the only purchasing power in the hands of those doing the hoarding and taxing and none in the hands of those creating the productive effort which money is needed to trade for. Profit from money ?, nothing more than the theft of another persons productive effort without contributing any wealth to the system in return for the profit and is exactly what must make any economy unsustainable regardless of it’s means of trade. Rothbard ?, Mises ?, owned by the same F*cking parasitic infection on humanity that owns the current Corporate Government and financed Lenin and the Bolshevik revolution as well. The idiot libertarians believing in them ? on the same team and promoting the same end, only too stupid to realize it. Anyone who thinks that the creation of abundant and infinite wealth can be facilitated using a scarce, finite commodity as it’s means of trade has established themselves as insane.


    “There was abundance in the Colonies, and peace reigned on every border. It was difficult, even impossible, to find a happier and more prosperous nation on all the surface of the globe. Comfort prevailed in every home. The people, in general, kept the highest moral standards, and education was widely spread.”

    When asked now this was accomplished he replied;

    “Why, that is simple! In the Colonies, we issue our own paper money. It’s called ‘Colonial Scrip.’ We issue it to pay the government’s approved expenses and charities. We make sure it’s issued in proper proportion to make the goods pass easily from the producers to the consumers. In other words, we make sure there is always adequate money in circulation for the needs of the economy. In this manner, by creating ourselves our own paper money, we control its purchasing power, and we have no interest to pay, to anyone.”

    You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of un-payable debt and usury.”

    “There is a certain proportionate Quantity of Money requisite to carry on the Trade of a Country freely and currently; More than which would be of no Advantage in Trade, and Less, if much less, exceedingly detrimental to it.”

    It worked because they had NO BANKS and money was freely created and managed as a public service, by the people, to themselves, so it could be maintained in circulation to facilitate the trade of ALL of their productive efforts, ON PURPOSE and ALL THE TIME. THINK PEOPLE, THINK !. Franklin did, it worked !. At least until his system was outlawed by the same Private Bankers who own Ludwig Von Mises and Murray Rothbard, Barack Obama, the Federal Reserve, the current Criminal Corporate Government established in their service, the Democratic Party, the Republican Party, the Tea Party, and yes, even the Libertarian Party as well.


    Copy, paste, use as you see fit, as with everything else on here. All a public service to the people of the Republic. Hehehe, the Revolution is coming and has nothing to do with any of the parties listed either, by now the people have this right, i’m going to be laughing my ass off when Citizen’s precious Gold savings revert to their actual value which is $ 20.00/ pound for it’s useful properties, at that value we will have a huge surplus of it as well because Gold simply is not that useful. Got Gold Anyone ? LOLOL 🙂

    See you in another 6 months or so Citizen LOL 🙂

    • Melanie Lopez

      Oh man you deserve to live the rest of your life as a spirit don’t worry we have a way we’re we don’t kill you we just make you live behind the computer and I’ll capitalize off all the crap you put on the screen k. Truth be told what are you really worth other then bragging about being a selfish greedy anti christ bastard. Let me guess you live next to starving kids have more money then you can spend play iluminati behind the scenes co conspirator or participant in knowing of course of the 911 and your dad was part of the water gate yeah welcome to artificial human shits for a government woohoo war

    • Melanie Lopez

      Hey you didn’t see 911 coming and atleast we can. Ack up our money oh I love the fact the copyrights lineage according to romes or the Saint franchise order and royalty has protection tighter then fort knoxs hmm Indians oh yeah famous for being murdered and capitalized off of. Next him Bible truth backed bloodline also order yes gods order this shit is better then your very existence

    • This is the part that scares me I have written a book and have copy rights I don’t pursue money and I haven’t touché s or persued a penny of any thing in regard to the Jewish luxumberg banks. Iv seen some very disturbing and violent fighting over the money it’s not in my power or myself to persue. I hope for the best I care for lord Jacob because he protected the honor and records that follow my lineage and order he is a good man and cares for humans maybe to much as far as the world sees but he has a heart of god. So atleast honored him. Since this hasn’t come out as for me living in USA I have been suffering and everything I had even before any of this has been tooken everything even my own little family which is all I want back and why I’m suffering.

    • Thank you as for me I’m not after money and to be its to complicated I’m single so who would protect it anyway. I’m just of a lineage that might have been hiddden before.

  • Macuw

    The subprime mortgages was evil but pure genius. Banks loaned out money they made out of thin air to people who could not pay back these loans. They still received maybe a few months of mortgage payments and in the end kept the houses. Banks own America and the whole world. I think Central Banks and usury should be outlawed all together!

    • Citizen


      Bail in the Banks…

      After all, “money out of thin air” should be paid back in kind!!

  • Citzen


    Time to Bail-Out the American Home Mortgage Payers!

    A year of Jubilee, stop paying our mortgages en mass!

    Let the Banksters take it in their chin. Afterall, they created the debt “out of thin air” so pay it back with “Thin Air”

    • Melanie Lopez

      Where do you expect the spirit to chill lax duh all in your head silly man

      • Melanie Lopez

        Witch head hunter I’m an entrepreneur hiring bounty hunter seacret agent men hiding must find them they don’t want to give you shit catch them they can go to aliens adoption the new spot the earth is overloaded dead body’s

  • Bo

    As honest, hardworking citizens of the U.S., we have only one choice:

    We must put enough pressure upon the Congress and the White House, to
    abolish the Federal Reserve Bank, and cease printing paper money . The
    current outlandish printing of paper money at the rate of 80 billion dollars each month by the criminals at the top of the banking mob, is simply robbing the citizens of 80 billion dollars each month, and absolutely destroying the meager
    purchasing ability of the average American hourly worker ! That 80 billion dollars, is going into the pockets of those “bankster” criminals, with the focused collusion of
    many corrupt congressional members. If We the People do not bring an immediate end to this criminal activity, it is only a matter of time before the remaining buying power of our greenbacks is completely gone, and it will require a suitcase of dollar bills to purchase a loaf of bread !

  • Brad
  • Brad
  • Citizen

    Murry Rothbard said it best…

    “Putting an end to inflation requires not only the abolition of the Fed but also the abolition of the FDIC and FSLIC.

    At long last, banks would be treated like any firm in any other industry. In short after they can’t meet their contractual obligations they will be required to go under and liquidate. It would be instructive to see how many banks would survive if the massive governmental props were finally taken away.”

  • Brad
  • Brad

    Rand Paul thinking in the right direction but still not quite right but better than what you had & have. Way to go Rand Paul!
    Seems to have his head in the right place.

  • Brad
    • Citizen


      I agree with the “former CIA agent”
      He’s correct in so many areas… don’t know where to begin.

      The BANKSTERS own the US.

      We need to do what Iceland did…
      arrest the banksters and throw them in jail and forgive the loans.
      Good luck with that one here in the USA

  • Brad

    This is the one I’ve been searching weeks for.

    • Citizen


      Renaldas Magnus was a great man before his time.

      Sadly we just have our “Imperial Dear Leader”

      Welcome to Great Depression 2.0

  • Brad

    Whats a cumquat? Not in my English dictionary.
    You’ll like this 1.

    • Citizen

      you need to get a better dictionary..

      Its a small orange colored fruit… about the size of a plum.

      • Brad

        Weird, hows the seed? Does it have cancer curing vitamin B17?

  • Citizen

    Yo Brad,

    You missed my post yesterday…

    Why are you mixing cumquats with apples?

    This is the Sound Money forum… not the medical conspiracy forum…
    I agree, the Big Pharma does sell snake oil and dupes the general public.

    But Sound Money is what we need to focus on HERE!

    How about that Rand Paul….!!
    Go Filibuster Paul!!

    • Brad

      Where’d ya post it? As far as honest money goes “They ain’t none!” and what there is it ain’t worth nothing! Buy a compressed air car from France or India now, if your country would even let them in?

      • Citizen

        Look below…Feb 28th

        Yes there is Sound Money…

        Gold and Silver coins!

        Get some and hold on tight!