Reggie Paulk: Get rid of Bernacke
November 12, 2010
To the Editor:
Nov. 2 was a big day, but the big news happened on Nov. 3rd.
With the elections over, I’d like to focus on something you didn’t get a chance to vote on: Federal Reserve Chairman Ben Bernanke’s Nov. 3 decision to continue “quantitative easing,” a fancy term for printing money. He’ll print over $100 billion per month over the next six months. To put that into perspective, the Federal Government is on track to borrow over $1.6 trillion this fiscal year. That means Chairman Bernanke will be monetizing nearly the entire U.S. deficit, something he said under oath in front of Congress he would not do.(http://www.bloomberg.com/apps/news?pid=newsarchive=agmj05AcqWHo.
How does that affect you? The value of our dollars is based on their relative scarcity. Fewer dollars in circulation means higher value relative to the goods and services they go to pay for, such as gasoline. More dollars in circulation – especially 600 billion more – causes their value to decline relative to goods and services. This means you’ll get to pay more, as much as a dollar more per gallon of gasoline, in a few short months.
The U.S. Constitution grants Congress the power to lay and collect taxes. Bernanke’s game of printing money has caused you to lose nearly 20 percent of the purchasing power of your dollar toward gasoline since 2008. This new effort will cost you 10 percent more. In roughly three months’ time, $100 will buy you the amount of gasoline $90 would today. Doesn’t that sound like a tax? How is it a man you have no say in electing gets to make decisions about how much money to take out of your pocket? Isn’t that the job of Congress.
In February, when you’re paying nearly a dollar more per gallon of gasoline than you are today, ask yourself how much more you have to take before you pick up the phone and call your representatives. You’re being taxed in direct violation of the Constitution, and the only way to stop it is to speak up. This is not an issue of Republican vs Democrat vs Tea Party. This is about of the rule of law. If you care about your country, the time to speak up is now. Please get rid of Bernanke.