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The Soon Coming Judgment Of God Upon America and How To Escape It 303
The increase in the total money supply has been even greater than the increase in
currency. The total money supply consists of much more than currency in circulation. The total
money supply is typically defined as M-2:
Currency in circulation;
Commercial bank deposits;
NOW (negotiable order of withdrawal accounts) and ATS (automatic transfers from
savings);
Credit union share drafts;
Mutual savings bank demand deposits;
Non-bank travelers checks;
Overnight repurchase agreements;
Overnight Eurodollars;
Savings accounts;
Time deposits under $100,000; and
Money market mutual shares.
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This increase in the money supply has caused a 90-year inflationary period that began in
1914 and continues today. M-2 (a measure of the money supply) in 2001 was $5.463 trillion;
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M-2 in 1914 was $16.39 billion.
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This was an increase of 33,231 percent. Concerning this
historian G. Edward Griffin stated in The Creature From Jekyll Island:
Inflation has been institutionalized at a fairly constant 5% a year. This has
been determined to be the optimum level for generating the most revenue without
causing public alarm. A 5% devaluation applies, not only to money earned this
year, but to all that is left over from previous years. At the end of the first year a
dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced
again by 5%, leaving its worth at 90 cents, and so on. By the time a person has
worked 20 years, the government will have confiscated 64% of every dollar he
saved over those years. By the time he has worked 45 years, the hidden tax will be
90%. The government will take virtually everything a persons saves over his
lifetime.
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It would seem this is the intent the Federal Reserve had in mind because this is exactly
what John Maynard Keynes taught. Only Keynes wasn’t warning of the consequences of
inflation, rather he was espousing the benefits for those who knew how to use it for there
advantage. The benefit he was speaking of was robbing the common man of his wealth. He
states:
By continuing the process of inflation, governments can confiscate,
secretly and unobserved, an important part of the wealth of their citizens. There is
no subtler, no surer means of overturning the basis of society than to debauch the
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