Henry Ford said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a lynching by tomorrow morning.”

What Ford was talking about is the way banking is transacted. America’s central bank is the Federal Reserve Bank, they determine the fiscal and monetary policy of the United States. Central banks throughout the world are linked and controlled by the Bank of International Settlements.

How does the Federal Reserve operate? The U.S. Treasury creates bonds of different durations. The Federal Reserve buys and sells bonds via a convoluted and somewhat clandestine process called Open Market Operations.

You and I work to accumulate funds to buy Treasury bonds, the Federal Reserve does none of that. They just print dollar bills out of thin air to purchase Treasury bonds.

When dollars are printed out of thin air, they are referred to as “fiat” currency. Fiat is a Latin word meaning “let it be done,” in the case of the Federal Reserve it means “let it be printed.”

Printed dollars were tied to gold until 1971 when Nixon removed the gold standard. The gold standard meant every printed dollar had a corresponding amount of gold to support every printed dollar.

After 1971 the Federal Reserve had no restrictions on the amount of dollars they printed out of thin air.

The Federal Reserve is not federal, has little over sight, is run by unelected bureaucrats and is responsible for controlling fiscal and monetary policy. Our country is 37 trillion dollars in debt and inflation is running wild and will get a lot worse. The Federal Reserve is a proven, unmitigated disaster, a complete failure.

Seventy years after Henry Ford, George Bush Sr. said, “If the American people ever find out what we have done, they will chase us down the street and lynch us.”

Now you know what Henry Ford and George Bush Sr. knew, inflation is caused by unrestricted printing of money out of thin air ... FIAT currency, and it does not work.

Terry Watto

Lehighton