[Posted September 19, 2009]

Imaginary Money

A.C. Bhaktivedanta Swami

Call the bluff - the Fed's grip is fluff

Basil & Spice Sep 15, 2009 - DAVID M. KINCHEN

Ron Paul: Fed Threatens Depression, $100 Bills Worthless

Questioning the Fed is like questioning Mom, apple pie and the American way to most people who are unaware of its genesis at a meeting at Jekyll Island, Georgia in 1910. Most people think of the Fed as an indispensable institution without which the country's economy could not properly function. But in End the Fed, Ron Paul, a 2008 GOP Presidential contender and the 1988 Libertarian Party Presidential candidate, draws on American history, economics, and fascinating stories from his own long political life to argue that the Fed is both corrupt and unconstitutional. It is inflating currency today at nearly a Weimar Republic (Germany from 1919-1933) or Zimbabwe level, a practice that threatens to put us into an inflationary depression where $100 bills are worthless.

...Grim quotes Joshua Rosner, a Wall Street analyst who correctly called the meltdown: "The Fed has a lock on the economics world. There is no room for other views, which I guess is why economists got it so wrong." go to story

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If you don't speak up and call for an end to the cheating...

The cheating goes on as long as you accept to be cheated A.C. Bhaktivedanta Swami

Actually it is not money. You are befooled. You are such a fool that you accept a piece of paper as money. Therefore I say you are rascal. That is my business. If I say "Government, give me gold," and government has passed law, "No, you cannot possess gold," that means cheating. How I shall keep gold, that is my business. First of all you give me gold. It is due to me. But you are giving me paper. That means cheating is begun from you. more

Cheating backed by government

excerpt from conversation, Bombay, April 15, 1977

PRABHUPADA: More money means cheating. You are employing; I am employed. Begins from government. More money and printing, they are coming. If I have got power to print paper and distribute it as money, you are dissatisfied, getting hundred rupees, you want two hundred, so what is to me? I print and give you. This is artificial inflation.

TAMAL KRSNA: More money means printing more bills.

PRABHUPADA: Yes.

TAMAL KRSNA: Yeah, but you haven't increased the...

PRABHUPADA: And your enemy country, they're actually happy. They print exactly money like this. They come and purchase goods and give you fortune, anybody. I know. Then what is the difficulty? Suppose this American dollar, is it very difficult to print? So the Chinese, they are America's enemy, they can print, bring millions of dollars and purchase from your country and export to his country and give you some paper. You are... What you can do?

TAMAL KRSNA: Well, we can only hope that we'll catch them. We hope that we'll catch them.

PRABHUPADA: That is another thing, "when we catch." Who will catch? "Bell the cat." It is going on. I know. During wartime, one Chinese man was coming from China, and one business friend, he was appointed his purchasing agent. He was giving a list of goods to purchase. And this man, whatever money the shopkeeper will charge, he'll immediately hand over in Indian currency. He'll not say, "Why so much price?" No. Then he will pack up the goods and through some channel he'll dispatch it. That is also through our way, not in the... The China is in on the border. There also, if you pay money, smuggler's rate... They try to do.

TAMAL KRSNA: That seems to be a big issue now, these smugglers. I notice in the newspapers every day.

PRABHUPADA: The smugglers get with money, printed money. Who can check it?

TAMAL KRSNA: So printed money should have gold behind it.

PRABHUPADA: Yes, that is the theory. What is the rate of economy?

TAMAL KRSNA: What is the idea...

PRABHUPADA: That is called...

TAMAL KRSNA: Gold standard.

PRABHUPADA: Not gold standard, but there is a technical name. That means if you print notes, currency note, immediately you have to keep stock of gold in the reserve bank. Reserve. Therefore it is called...

TAMAL KRSNA: The gold reserves.

PRABHUPADA: Gold reserve. Gold reserve, yes. At least forty percent.

TAMAL KRSNA: What's the idea behind that?

PRABHUPADA: What is that? The idea is cheating. The cheating business begins from the government. And why people will not learn to cheat? This is cheating. I am giving you one paper, one hundred rupees, dollars, and you are happy: "I have got so many ..." I am giving you check, ten thousand dollars. You got ten thousand dollars. Now I give you a paper. But it is going on. We have made machinery in such a way that it will go on in hundred rupees or ten thousand rupees. Just like this fixed deposit. I am giving actual money; they are giving a receipt. And it will increase. What increase? The same paper. And gradually inflation is going on. They'll pay at the inflation rate.

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