Abolish the IRS, and end the Federal Reserve. The Fed creates credit and money out of thin air. We dont need a secret and all powerful central banking monopoly trying to control the value of our money. Valuation is determined subjectively by individual actors in the exchange processes of a freemarket (The Theory of diminishing Marginal Utility). The quantity value theory of money is not a valid theory and does not hold true when one studies the history of hyperinflationary events like the one that occured in Germany in 1923. Monetary inflation and rise in prices happen at varing and different rates at the different stages of the inflationary event. For example monetary inflation, the expansion of the M2 happens at a much faster rate than the rise of prices during the beginning stages of an inflation. Prices rise much faster than the M2 expands towards the end of an inflation or during a hyperinflation. Therefore The Fed can't control valuation directly , but it can distort market valuations and the market rate of interest, which will only bring about the misdirection of capital and labor resources into the higher order stages of production( capital goods industries) where they become malinvestments( Can you say TARP?). The Fed inflationary induced low interest rate distorts the true market rate of interest that reflects peoples true time preferences and drives a wedge between savings and investments which leads ultimately to a market boom then a recession. This is exactly what happened in the fall of 2008. The freemarket did not breakdown because there was no freemarket as long as you had this market manipulating central bank and ever intrusive government regulations at all levels. Savings, investment and production are the only way out of this economic crisis not government spending and monetary inflation. Pools of market capital through voluntary savings will get us back to sustainable economic growth for the long term. The phasing out of The Fed is the next step. Our founders envisioned for America a sound money, a free people and a free and voluntary exchange process (freemarket) which is something we haven't had in a very long time now. The Fed and the fiat monetary system is the driving engine behind the welfare/warfare state and big government police statism and it is how and why we are loosing our liberties.
Your friend in Liberty, Michael W. Hope
Candidate for US Congress Texas District 9