The Liberty Voice Transcript Service
Excerpts of speech by John F. McManus, President of John Birch Society.
The US National Debt is 9.6 trillion dollars. The US Population equals 304 million people. Each citizen’s share of the national debt is $31,641. The interest on the national debt is $430 billion (about $1400 for every man woman and child.) True indebtedness of US government adding unfunded obligations into the future — approaches $50 trillion.
This is what we are leaving for our children, our grandchildren. No nation in the history of mankind has ever been as heavily in debt as ours, and our leaders have numerous foreign aid programs where they give away money.
And of course there is a woeful lack of understanding. There are people today who say, “We need the Fed because someone has to manage the currency.” Ladies and Gentlemen, that is one of the greatest fallacies of all. If the currency is a commodity like gold or silver, it does not have to be managed. The free marketplace will manage it. Money should be a commodity — valuable to all people, and there’s no management needed. People say to me, if you get rid of the Fed what are you going to replace it with? I say, if you’ve got cancer do you wanna replace it with pneumonia and two broken legs? No you don’t.
Now here we have two dollars. Each says “one dollar.” One is a paper dollar and one is a silver dollar. The paper dollar will get you one quart of gasoline. The silver dollar will get you as much as 12 quarts of gasoline, but they both say “one dollar.” Isn’t a dollar a dollar anymore? The answer is no. It’s not. A silver dollar is worth at least 12 times more than the paper dollar, and of course that is changing dramatically as the paper dollar continues to lose its value.
It’s cause is inflation. It is NOT rising prices. Inflation is an increase in the quantity of currency, so then you should blame the counterfeiter, the government, or the government’s partner the Federal Reserve for flooding the nation with currency. That’s what inflation really is. Rising prices are the effect of inflation. Inflation is an increase in the quantity. You could say that about anything. If a fella found a beach covered with diamonds, and he started to spread the diamonds around the community the value of diamonds would go down.
If you give anybody the power to inflate, he will.
Now if you go to a dictionary today you will probably not get a decent definition; they will equate it with rising prices. In 1957 this dictionary had it correct. It said, “Inflation: An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and a rise in prices.” Note: resulting in rising prices.
There are two aspects of inflation that are important. The first is thievery. John Maynard Keynes, a famous British socialist, wrote a book in 1920 and in it he hit the nail on the head. He said, “By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” How does that happen? Well, let’s give an example. We’ll say that a man in 1945 inherited $10,000. He could have bought a home in 1945 for his $10,000. He didn’t. He put it in the bottom drawer and then 50 years later he found out he couldn’t even put a down payment on a home. So, what happened to the value of his money? It was confiscated, secretly and unobserved by the government and its partner the Federal Reserve.