The Rising Price of the Falling Dollar — Charles Kadlec, Forbes.com

Do you know why oil and prices are moving sharply higher? Some blame the oil companies, charging they are manipulating prices. Others cite U.S. sanctions on Iran and the threat of a military encounter that would disrupt the flow of oil from the Middle East.

Speculators, too are blamed for ostensibly bidding up the price of oil. In the political arena, President Obama is taking credit for increased domestic oil production even as his critics point out the slow pace of drilling permits issued by his Administration soon will hamper additional increases in the U.S. oil production.

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty. Read entire article

Categories:     Tags: Charles Kadlec, Dollar, Energy, Gold Standard, Inflation, Liberty, Monetary Policy, Oil Prices, Unalienable Rights

How to Stop the Spike in the Price of Gasoline — Charles Kadlec, Forbes.com

Since 2002, the price of gold — and the price of oil — have each increased five-fold.

Here is the same point in dollars and cents. If the Fed had maintained the value of the dollar at 1/350th of an ounce of gold — instead of debasing the dollar to nearly 1/1800 of an ounce of gold– the price of oil today would be about $21 a barrel, and the price of gasoline would be around a buck-thirty a gallon, right where they were on average for the 19-years ending 2002.

So, the next time you fill up your car, direct your rath at the Federal Reserve and the governing elite who tolerate and defend the debauchery of our currency.

And, if you want to “do something” to stop the rise in the price of gasoline, start demanding the Federal government do the one thing that works to stabilize oil and gasoline prices: stabilize the value of the dollar in terms of gold. Read More

Categories:     Tags: Charles Kadlec, Energy, Gold Standard, Monetary Policy, Oil Prices

The Federal Reserve’s Official Goal:  Devalue the Dollar 33% — Charles Kadlec, Forbes.com

The Federal Reserve Open Market Committee (FOMC) has made it official:  After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years.  The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.  This, the Fed explains, is the best the FOMC can do.

Categories:     Tags: Charles Kadlec, Federal Reserve, Gold Standard, Monetary Policy

Gingrich, The Gold Standard, and the Florida Primary — Charles Kadlec, Forbes.com

The biggest under-reported story of the South Carolina primary is winner Newt Gingrich’s campaign promise to convene a gold commission to “look at the whole concept of how do we get back to hard money.”

Monetary reform can be the issue that propels Gingrich above the tawdry attacks on his personal life and questions about his reliability all the way to the Republican nomination, because it puts him ahead of Governor Romney and Senator Santorum on a policy that enjoys a clear plurality of support among Republicans, Democrats, blacks, whites, hispanics and individuals across all income categories.

Categories:     Tags: 2012 election, Charles Kadlec, Gingrich, Gold Standard, Monetary Policy, Romney

Budget Collapse:  Too Much Free Money — Lewis Lehrman, The American Spectator

“A look at the current Federal Reserve Balance Sheet shows that the Fed has created about $1.7 trillion of new credit (money) with which to purchase Treasury debt. Foreign central banks have created about $2.7 trillion of new credit to purchase U.S. Treasury bonds. This global, electronic, money-printing exercise has financed almost 30% of the total direct debt of the U.S. Treasury.”

Categories:     Tags: Budget Deficit, Federal Spending, Gold Standard, Lewis Lehrman, Monetary Policy

Ever since President Richard Nixon in 1971 killed the Bretton Woods international monetary system by breaking the link between the dollar and gold, the U.S. economy has experienced slower growth, higher average inflation, higher unemployment rates, more bank failures and a series of financial crises that, in total, have reduced our income by about a third.

Now, a Bank of England study with the ambitious title, “Reform of the International Monetary and Financial System,” shows that the entire world economy has suffered a similar fate.

Categories:     Tags: Charles Kadlec, Gold Standard, Monetary Policy