W A Wijewardena: Why inflation tax is an evil?

BIS.org

Article by Mr W A Wijewardena, Deputy Governor of the Central Bank of Sri Lanka, published in Sunday Times on 10 June 2007.

A popular folk story talks of a villager making a chance meeting of a demon in the forest and using his craftiness to get the demon to work for him. Understandably, the demon being an untiring person proves to be a marvelous worker. His contribution to the villager far exceeds that of even a thousand workers. According to the story, everything is well and good as long as the villager is able to keep the demon under his control. But, on the day the villager loses his grip over the demon, it would set upon the villager and devour him. So, though the villager would have a jolly-good life in the short run, he runs the great risk of losing everything, including his life, in the long run.



Governments’ use of inflation as a tax to force-mobilize resources for funding government projects has been equated to the fate of the villager in that folk story. In the short run, a government could forget about all its fiscal problems and enjoy the temporary solace provided by it. But in the long run, when inflation becomes uncontrollable, it will have to sacrifice all its temporary gains. When an initially mild inflation degenerates into an uncontrollable hyper-inflation later, it has been termed as a mass killer. It would destroy the financial infrastructure and, through it, the entire social and economic infrastructure. Rebuilding a nation after this massive destruction would be a very painful and tedious challenge for everyone.
 
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Fed rage boils over on Capitol Hill

Ben Bernanke will win confirmation to a second term as head of the central bank. But it won't be pretty. The movement in Congress to rein the Fed in is gaining steam.

By Jennifer Liberto, CNNMoney.com senior writer


Last Updated: November 23, 2009: 12:48 PM ET


WASHINGTON (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke has a tough road ahead.

Very tough.

Bernanke, whose four-year term expires in January, is certain to face a contentious Senate banking panel at his confirmation hearing, set for Dec. 3. He is also defending against the sharpest attack on Federal Reserve powers ever.

The latest blow came last week, when a House panel overwhelmingly agreed to tack on to must-pass regulatory reform a proposal to dig into the Fed's books, despite attempts by Rep. Barney Frank, D-Mass., to make it less intrusive.

Fed watchers say they expect that Bernanke will be confirmed for a second term as chairman. But he may get the fewest favorable votes on record - and end up at the helm of a vastly changed Federal Reserve.
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Joseph Moshe arrested for predicting Baxter bioweapon outbreak mutated H1N1 flu in Ukraine!

Mark Matheny
November 23,2009

Listen to the report here.

Listen to second report here.

Oklahoma City OKC Bombing: Demolition Charges Used Inside Building?

Written by Jim Capo

Thursday, 15 October 2009 00:00

That is the most likely reason the security camera tapes recently released by the FBI under a Freedom of Information Act request appear to be doctored. The official line on the bombing of the Murrah Federal Building in Oklahoma City on April 19th, 1995 is that a couple a guys in a Ryder Rental truck, filled with a backyard brew of fertilzer and fuel oil (ANFO bomb), were able to bring down a major portion of a steel reinforced concrete structure. While that story was being fabricated for mass consumption, investigative reporter Willaim F. Jasper of The New Americanmagazine — flagship publication of The John Birch Society — was digging up the real truth. (Click on cover story photo.) Jasper called on the expertise of Brigadier General Benton K. Partin (USAF, ret). Partin had spent a career in the military developing ordnance that would get the biggest bang for the buck when it came to destroying things like buildings. Partin's analysis of the blast site and destruction of the Murrah building came down to this: An ANFO bomb could not have destroyed the structural columns in the Murah building. And, even if military grade explosives were used, a blast in the street could not destroy interior columns while leaving closer more exterior columns intact.   The conclusion Partin offered was that the Murrah building had most likely been brought down with the use of demolition charges. Read the full story at JBS.org

Veteran's Day: No sign of Patriotism from Obama

Mark Matheny
November 21,2009

I recieved this this picture via email. Here is Barack Hussein Obama at Arlington National Cemetery on Veteran's Day, November 11, 2009. You will notice that everyone in the picture is either saluting or has their right hand over their heart for the ceremony. It's not known whether this was during the Pledge of Allegiance or during the playing of the National Anthem, but what is apparent is that Obama seems to have no allegiance to America! Maybe next time they should raise the UN flag- then maybe he will show his true allegiance!

Mark Matheny, Veteran and Proud American.

Health-Care "Reform": It's All About Power

By Sheldon Richman
Published 11/20/09


 If the politicians who are bent on redesigning the medical and medical-insurance industries really wanted only to curb rising prices and help the uninsured get coverage, they would have zeroed in on the previous government interventions that created those problems. Instead, they are pushing grand schemes to turn our medical decision-making over to bureaucrats. That indicates that the so-called reform campaign is about power. Medical care is too expensive. Prices for services rise faster than other prices, and there's reason to believe much of the money is wasted. Expensive medical care equates to expensive insurance, which prices some people out of the market. This has been called a failure of the free market, but that can't be: There is no free market. I defy the advocates of government control to name one aspect of medicine or insurance that government doesn't dominate.
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Continental Congress '09 Now in session

Mark Matheny
November 19, 2009

Editor's note: I had some format problems that might take a while to fix, so please excuse the set up of this article.


The Continental Congress is now in session, and can be viewed at: www.cc2009us.com
When you go to the site, click on the live streaming video.
http://www.givemeliberty.org/cc2009TEMP.htm

Read more about it!