"All the perplexities, confusion and distress in America arise, not from defects of the Constitution or Confederation; not from any want of honor or virtue, as much as downright ignorance of the nature of coin, credit and circulation." John Adams wrote to Thomas Jefferson in 1797.

Today, two hundred years later, his statement still holds true. And because of this the United Stats has allowed and continues to allow the Federal Reserve, a paper corporation, to control the flow of money; making it tight and creating unemployment or printing more and creates inflation.

Article I, Section 8, Clause 5 of the United States Constitution states that the Congress shall have the power to coin money and regulate the value thereof and of any foreign coins. As you may know, this is not the case anymore. The United States government has no power to issue money, control the flow of money, or to even distribute it; that belongs to a private corporation registered in the State of Delaware, the Federal Reserve Bank, created by Congress in 1913.

Although the Fed can print money with no backing it still requires US citizens issue T-bills to support the created money. Unfortunately it is our children that pay for the treasury bills we issue to prop up the markets. Any money the Fed releases to "curb market jitters over sub-prime woes" is a tax on unborn children who will be paying the interest on the debt we have accrued.

When the Fed injects more money into the system, then you have more money chasing the same number of goods which causes inflation. Inflation exists from the uneven change in the volume of money, say, when it is printed and given to a defense contractor. For the moment the contractor's suppliers do not realize the money volume has changed, the recipient of the printed money experiences increased purchasing power. The workers end up receiving the wage in old money, but then are faced with prices in the new money after the vendors adjust to the new money supply.

Generations ago it was free for citizens to turn their gold and silver into money, which increased the money supply as a wealth to the people. Now dollars are created out of thin air and loaned into circulation as debt against future production, not exchanged into circulation as production performed. Money has been switched from an evidence of wealth to an evidence of debt. The whole principle and function of money has been switched.

Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."

Slavery is the price of ignorance.

Ron Paul 2008!