"The Federal Reserve has simply unleashed the federal government to spend whatever it wants; and it has done so by printing the cash the government needs and keeping interest rates artificially low. Its cash printing has devalued the dollar by 93 cents. So, what you could buy with a dollar 100 years ago costs $21 today."

Restoring a Free Market in Money

Judge Napolitano

Does the government work for us or do we work for the government? The President is still pushing his jobs bill. Tonight, if it cost you more to get a job than you would earn from it, why take the job?

President Obama has added nearly $4 trillion in debt to the backs of your children and grandchildren and to generations of Americans as yet unborn. Republicans as well as Democrats in Congress authorized him to borrow all this money, and he has done so at a rate unknown in history. In less than three years in office, President Obama has borrowed more money than all presidents from George Washington to George H. W. Bush combined. In one three day period last month, he borrowed $163 billion, a new record. Because of all that money borrowed and spent, the cost for food, clothing, and fuel is about 25% higher today than when President Obama took office. Unemployment, which was at 6% when he became president, now hovers steadily at higher than 9 %; that's about 15 million American adults out of work and looking for jobs. And still the president wants to borrow another half trillion and spend it between now and Election Day.

The President has passionately argued for passage of his jobs bill. He claims that if the bill is enacted, the government will create new jobs. Basically he wants to borrow another half a trillion dollars today, and then in a few years, when he is no longer the president, have the IRS tax the rich to pay back the borrowed money.

There are profound problems with this. First, government spending does not produce prosperity. Prosperity--real wealth, real jobs, real growth--only comes about through real risk and real reward. Stated differently, the government cannot make us prosperous. If it could, the federal government would just have the Federal Reserve print cash for all of us and we'd all be rich. Everyone knows that won't work. We'll end up paying a thousand dollars for a loaf of bread.

Second, you cannot make poor people rich by making rich people poorer. The rich are the risk takers, the investors, and the employers. They create wealth, produce prosperity, and create jobs. Candidly, I laugh whenever I hear the President or even his Republican critics point a finger at each other and ask the other side what it has done to create jobs. The true answer is the government doesn't create jobs, except for the bureaucrats it hires. It doesn't produce wealth, it consumes it.

The answer to what the federal government should do that only a few have articulated is: Get out of the way; lower taxes; cut regulations; stop bailouts; stop picking winners and losers; stop borrowing; and bring the troops home now. Just like you and me, the Solyndras of the word should rise or fall on the skill of their work and the value of their products, not the strength of their political contacts and the easy use of your hard-earned tax dollars. If the federal government was really serious about creating jobs, it would shut down the unnecessary parts of the government, like Energy, Commerce, Education, Housing and Urban Development, and Interior. All this would unleash the private sector with the cash that would otherwise go to the feds; and that cash when invested would create jobs. As for the President's jobs bill, the Democratic controlled Senate defeated it last week. It did so after the government's research arm, the Congressional Budget Office, revealed that the cost to the government to produce a $100,000 a year government job would be about $200,000. Need I say more?

Yes. End the Fed. End it now. Let the free market in cash determine interest rates. The Federal Reserve has simply unleashed the federal government to spend whatever it wants; and it has done so by printing the cash the government needs and keeping interest rates artificially low. Its cash printing has devalued the dollar by 93 cents. So, what you could buy with a dollar 100 years ago costs $21 today. This was not always the case. In the 125 years that America existed before the Fed, the value of the dollar went up, not down. So, what cost you a dollar in 1787 cost ninety cents in 1913; and it was all backed by gold; so the dollar had real value. The gold standard will keep the government from spending what it doesn't have. When you could take your dollars to the Treasury and it would give you the fair market value of those dollars in gold, the dollar was worth far more than it is today. Today, we don't even know if the government owns any gold.

Now, which of the presidential candidates understands all this, and which will bring you differing versions of the policies that brought us here? The answer is obvious.

From New York, defending freedom; so-long, America.

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