By Michael Peroutka
Here is a video version of this column:
Did you realize that if you have a dollar bill in your pocket, you actually have a fairly reliable standard of measurement?
You see, the long side of a dollar bill laid flat on a surface measures exactly six inches long.
Practically speaking, this means that if you have a dollar in your pocket, you have a very reliable six-inch ruler at your disposal.
Regrettably, what you don’t have at your disposal is a dollar.
You see, as a standard of linear measurement, the dollar bill might be a reliable tool, but as a measure of wealth, the dollar bill is a disaster.
Because dollar bills are printed by the Federal Reserve without anything of real value to back them up and because even more dollars are loaned into existence by Federal Reserve member banks, the ones you have in your pocket are constantly losing their buying power. It’s like if you were playing a game of Monopoly and one of the players could simply print money and spend it into the game whenever he ran out.
Every time more worthless Monopoly currency is introduced, the value of the currency that is already in the game goes down because it is competing for the same properties on the game board.
In just this way, the federal government, in a criminal partnership with the Federal Reserve, has been devaluing the dollars that private folks work for and save.
When politicians want to buy votes or influence, they spend money they don’t have by just asking the Federal Reserve to print it for them. They do this constantly, so constantly the value of the dollar in your pocket – the one you worked for – shrinks smaller and smaller in buying power.
This is not a mistake or an accident. Both Democrats and Republicans know what they are doing, and they do it on purpose. Bush knew it; Nixon knew it; Reagan knew it; it wasn’t just Carter or Clinton – they knew it, too. But now, with the Obama administration, this criminality is speeding up and spinning out of control.
Obama and Bernanke have printed so much “Monopoly money” that any wealth you may have that is denominated in dollars will soon be worthless. And the new Fed chairwoman, Janet Yellen, has promised more of the same.
So it seems silly to worry whether you’d do better in stocks or bonds or mutual funds. As long as you’re in dollars, you’re in trouble.
Thanks to both Democrats and Republicans, the only thing you will soon be able to do with a dollar bill is measure six inches of misery.
Michael Peroutka is a constitutional commentator, former nationally syndicated talk-show host and founder of the Institute on the Constitution.