The guillotine follows the paper money press — the two machines are complementary, one to the other.

18th century French proverb

Inflation: Cause & effect

If more money [or credit} is available without an increase in production, prices go up.

Your Money and the Federal Reserve System, Minneapolis Federal Reserve Bank, p. 16 (rev. 1976)

… and he that earneth wages earneth wages to put it into a bag with holes.

Haggai 1:6

Behold — The $ource

The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money — almost any amount of it.

The National Debt, Federal Reserve Bank of Phila., p. 8

The principle product [of the Treasury] is United States paper currency … averaging approximately 16 million [Federal Reserve] notes a day.

Production of Government Securities, U.S. Treasury, p. 2

And it’s so cheap!

The $1 bill costs nearly 2 cents to produce …

The Dollar of the Future, U.S. Treasury, p. 4

Of course, $100 bills require no more ink, paper, or labor to produce. Ask any counterfeiter. The mark-up on 2 cent $100 bills is 500,000% — which isn’t too shabby. But does it really cost 2 cents of anything to print I.O.U.s which, since 1963, offer to pay nothing???

The local swindle

Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to accounts on their books in exchange for a borrower’s I.O.U. Banks create money by ‘monetizing’ the private debts of businesses, individuals, and governments.

I Bet You Thought, Federal Reserve Bank of NY, p.27 (3rd ed. 1982) [Debt is money!?]


100 # of free money! Simply identify the substance — currently measured in dollars — which the U.S. Government collects, spends, and wastes, or that banks pretend to lend. Our address appears on the last page. Good luck!

Government loves inflation

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.

1980 Annual Report, Federal Reserve Bank of Richmond, p. 6 (quoting John Maynard Keynes, economist)

Inflation = taxation

Keynes argues that inflation is a method of taxation which the government uses to secure the command over real resources, resources just as real as those obtained by [ordinary] taxation. What is raised by printing notes, he writes, is just as much taken from the public as is a beer duty or an income tax. Regarding the inflation tax, he says that a government can live by this means when it can live by no other. It is the form of taxation which the public find hardest to evade, and even the weakest government can enforce, when it can enforce nothing else.

ibid., p. 10

The dilemma

Mankind has repeatedly suffered economic disasters as a result of his infatuation with imaginary money. History will show that credit was the most efficient and misunderstood fuel ever used to propel a covetous nation to the brink of extinction.

By forging a link with Caesar, the system of bank plunder was legalized, while making its perpetrators almost impossible to unseat. In return, Caesar grew fat and sassy on his share of the harvest. The power derived from the printing pre$$ spawned a government which promises salvation from whatever adversary (real or invented) might arise.

Yet this power also makes it possible for governments to pursue policies that could have even more disastrous results than bankruptcy.

The National Debt, FRB of Phila., p. 8 (emph. added)

America now faces more disastrous results than bankruptcy, but the victims are still unaware as to the cause, or the calamitous effects awaiting us. In a nutshell, inflation wipes out dollar earnings and savings, creating a nation of slaves who are totally dependent upon the hidden masters who perpetrated the cruel hoax in the first place.

As credit and welfare dependence increase, those who continue working are forced to carry a heavier burden until the point of economic collapse, at which time commerce and civilization come to an end. No food, no sanitation, and nothing in between. Putting this in King James English:

there shall be famines, and pestilences … in divers places.

Matthew 24:7

Learn from the mistakes of others — you may not live long enough to make them all yourself!

The French Assignats of 1789-1796 are the classical example of a fiduciary paper money standard. Here, in the brief space of seven years, France made a series of experiments … in which most of the numerous devices … for preventing the depreciation of inconvertible paper money were tried and tried vigorously.

Money, Professor E. W. Kemmerer, p. 173 (1935)

The death penalty was eventually imposed upon the victimized public for refusing to accept fiat money, for accepting it at a lesser value than government said it was worth, and even for hoarding commodities.

The experience with the Assignats gave rise to the French saying: The guillotine follows the paper money press — the two machines are complimentary, one to the other.

ibid., p. 196

History offers an evening performance for a nation which missed (or chose to ignore) the afternoon matinee, as Solomon said:

The thing that hath been, is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.

Ecclesiastes 1:9 [So listen closely …]

In the three years prior to December 1923, German wholesale prices rose more than a trillion [!] times. Inflation accelerated so fast that many restaurant patrons paid in advance because if they waited until they finished eating, the price of the meal might double. Beneficiaries seldom bothered to collect on life insurance policies because the proceeds were often worth less than the current price of a stamp to notify the company.

Steering a Course Between Inflation & Unemployment, Phila. FRB, p. 8

ARGENTINA’S INFLATION FRENZY — PRICES CAN DOUBLE IN A WEEK. A pair of jeans that could have been bought Tuesday for 1,400 Australs fetched 2,500 Australs on Thursday.

San Francisco Chronicle, p A-14 (15 April 1989)

PERU’S INFLATION HIGHER than the SUN. Their currency is named for the sun, but with inflation of nearly 3,000% last year, Peruvians got little warmth from it. ‘The first truck I bought 15 years ago, cost me 10 million soles; now that wont even buy me a pack of cigarettes,’ said Miguel Guzman, who owns a trucking company in Lima.

San Francisco Chronicle, p. A-24 (4 April 1990)

Identify the substance measured in australs or soles to receive 100# of THAT money absolutely free!

BRAZIL BEGINS BIG SHAKEUP of ECONOMY. President Fernando Collor de Mello ordered a sweeping emergency package of economic moves yesterday that include a month-long price freeze, a new national currency [A rose by any other name …], and jail terms for ‘economic crimes.’ lnflation is 2,700% a year.

San Francisco Chronicle, p. A-11, 17 March 1989

Are you prepared for new state-created economic crimes to protect the banks. How about an exchange where new number of nothing replace your old ones?!?! Then you can kiss your savings good bye!

At the end of November [1923], the [German] government officially valorized the outstanding paper marks at the rate of 1 trillion of the old marks to one rentenmark.

Money, p. 316 [A trillion to one!]

In anticipation of America’s economic collapse, we see a new policeman (FINCEN) has arrived. The UN’s Financial Crime Enforcement Network is here, and driving unmarked black assault helicopters. But inflation will never be cured until we repent of its cause. Would you like to join those of us who now use the real thing instead of bank-regulated monopoly money — before your unsinkable Titanic goes down?

Send $0.50 of pre-1965 U.S. silver (or $5.00 in postage) for our 90 minute audio tape: Where is YOUR Money? Things may never look the same again.

Bruce G. McCarthy
HC-62, Box 375
Smithville, Oklahoma 74957

Order 75 of these I-2 fliers, a materials list, and sample fliers for 1 oz. (or $1.40*) of silver, or 30 Ist class stamps. [* Pre-1965 dime — dollar weight coins) No checks, notes, or copper/nickel, please!