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Author Irwin Schiff is now a regular member of the Tribune Media Group. His column appears weekly in both the Mesquite Tribune and Las Vegas Tribune.
It increases the purchasing power of their savings as it allows them to by products at lower prices. Falling prices are not bad for business, because it allows businesses to buy products cheaper and to sell them cheaper.  Thus they will sell more product.  And if deflation is unfair to debtors, how come we never hear how unfair inflation is to creditors by forcing them to accept payment in money of lesser value? In addition, the natural tendency of prices is to fall, based on the recovery of fixed costs and increases in efficiency.

  Falling prices, however, are bad for government and the stock market  so government and Wall Street propaganda mills circulate stories about the evils of deflation.  If all prices including wages fells by 10% workers would be better off.   Assuming wages at $100 per week and a CPI of 100.  If wages fell by 10% workers would themselves in a lower tax brackets leaving them with approximately $92.00 to spend, while prices would have dropped to $90, so their salary will go 1% further along with their accumulated savings.  But suppose inflation forces prices up 10% including their salary.  Since they would have to pay taxes out of their increased salary, they would only have $108 to pay for the $110 new cost of goods.  So now their salary (and accumulated savings) go 2% less than they did before.  This is how inflation robs working consumers.  Government printing ever-increasing amounts of intrinsically worthless, paper "money" is what causes prices to rise or prevents them from falling as much as they otherwise would.

         As I explained, inflation allows debtors to pay off their debts in money of diminished value.  Since the U.S. government is the world's biggest debtor, with over $10 trillion in funded and unfounded liabilities; an inflation of only 1% allows the government to screw its creditors out of over $100 billion dollars. The government has conned the public into thinking that inflation is reflected in changes in the Consumer Price Index. However, rising prices are merely the effects of the "inflation" not its cause.  "Inflation" is the amount by which the money supply is "inflated" as a result of government monetary policy and its willingness to print ever-increasing amounts of intrinsically, worthless paper "money."   For example the June 16, 2003 issue of "Barron's" shows that currency in circulation stood at $693 billion, which was $38.7 billion higher than a year ago. Thus currency in circulation was "inflated" by 1?2 of 1 percent. (To keep it simple, I am not going to get into other areas of monetary expansion such as through bank reserves.)  However, this amount of "inflation" took place during a period of diminished economic activity, when the "money" supply should have been diminished or "deflated."  The point is, rising prices: 1) creates the illusion of prosperity, 2) keeps the stock market artificially inflated, and 3) allows the government to screw its creditors  (including social security recipients) by paying off its debts in "money" it simply runs off the press.  If the government had to pay off its debts in real money  i.e. gold and silver  the government would have to be far more responsible. If you  - like the government - had your own little printing press, would you worry about being financially responsible?     

           "Inflation" is nothing but a tool by which the government illegally transfers purchasing power from the people to itself. Bank robbers steal with a gun; the government steals with a printing press.   The Founding Fathers understood this governmental technique so it sought to protect the public from it, by inserting two clauses in the Constitution, which the government now totally ignores.  Article 1, Section 10, Clause 1 bars the States from making anything other than gold and silver a tender of debt in the United States, while the federal government was given no power to make anything legal tender.  The only monetary power the Constitution gives the federal government is "To coin money (and) regulate the value thereof."  The federal government was given no power to take worthless paper, declare it legal tender, and then spend it into circulation so it could screw the public.  Without explaining the intricacies by which our printing press "money" gets spent into circulation, the government uses the so-called Federal Reserve (which is really nothing more than another federal agency) to hide the printing press character of U.S. paper "money."  The only constitutional, power the government has is to put gold and silver coin into circulation. To help finance the Civil War, the government, as a temporary, war-time measure, resorted to the issuance of paper currency (called U.S. notes), which promised, on their face, to be redeemable in lawful money  i.e. gold and silver- at some future date. And in 1871 the government made good on its promise and they became redeemable at that time.

             Starting in 1909 Federal Reserve notes were introduced which were also, initially, redeemable on their face, in gold or silver.  Eventually their redeem ability was discontinued. The U.S. government like any irresponsible, deadbeat debtor simply reneged on its promise to redeem these "notes" in anything at all.  So, our so-called "Federal Reserve notes" are now backed by nothing but political hot air, which means they are backed by nothing. They are intrinsically worthless.  However, for now the government will accept them in payment of taxes, which is what gives them some value. However, you don't want to be holding on to these intrinsically worthless pieces of script (and other dollar denominated assets) when the music stops.  And it is going to stop: you can count on it.

              The American Public will not see or hear these truths about the "income tax", during the course of the most significant "tax" trials in America's history from mainstream media or from the government even though the outcome of these trials effect every American family. So, it is up to the public to do the job by informing family, friends, neighbors, students, and co-workers that the trials are going on now and that they can be heard on the Internet at www.paynoincometax.com   
Order the Court tapes for distribution from Freedom Books in Las Vegas. 385-6920.
By Irwin Schiff

           You might have seen any number of articles in the paper of late about the alleged current danger of deflation.  The reasons given is that falling prices are bad for business and could trigger employee layoffs and also that falling prices are unfair to debtors because it compels them to pay off their debts in money of increased value.  All these claims are pure bunk.  Falling prices help working consumers in many ways.