On the September 15, 2012 edition of the US Farm Report on RFD TV, John Phipps talked about the FED decision to create $40 Billion a month from nothing to buy our home mortgages. In discussing the event, he states what he called the short version of Bernanke's public announcement in the preceding week, then Mr. Phipps adds his own analysis.
The short version: "We're going to worry about inflation once we gets jobs back, not before."
This is very good news, I think. If our whole economy could pick up steam, the possibilities that open up to ag are enormous.
You can see his comments the video on the www.agewb.com/usfr page, shortly after the middle of the program.
I sent the following email to Mr. Phipps that same day.
Mr. Phipps,
On Saturday September 15,
2012 you mentioned the FED's decision to create more new money as
being a good thing for agriculture. This thinking is hailed by
conventional wisdom as sophisticated and smart, yet it is objectively
illogical and based on measurably false assumptions. It is especially
shameful for people who are involved in agriculture to be confused about
the effect of any government interventions, especially the act of
creating new money from nothing.
If we are to prosper again in
agriculture, or as free people in the US, we must stop government
interventions on all fronts. In few words, I explain it in this way:
Have
you ever noticed that people eat food and use things? Food and things
must be produced. Government produces nothing, wastes much and
interferes with production. Therefore every promise made by government
has to be kept by a producer. Government intervention makes us all
poorer than we would otherwise be.
The only way for anyone to
increase wealth in the current system is through wealth transfer, not
wealth production. The American producer provides the wealth to those at
the top of the system. Bernanke cannot produce wealth with entries in a
ledger. He can only transfer it.
My question to you is this: How does the creation of new money, which today is simply an electronic ledger entry, add to the wealth of a nation or individual?