Today, The Federal Reserve Bank is one hundred years old. Over those years it has brought the U.S. dollar to its knees. According to the government inflation indicator, a dollar is now worth four cents.
This impacts almost everything, including health care. When the value of a dollar erodes, it destroys the savings of the people. When savings are destroyed, people turn to others for help in their time of need. Such is the case in health care. The third party payers of job-based health insurance, Medicare, and Medicaid dominate our system.
Because of their lack of savings, the American people have come to accept that third party payers should pay. Actually, the people still pay for their health care. They pay through taxes, insurance payments made primarily by employers, and the inflation tax.
The Federal Reserve Bank enables the inflation tax. When the national government needs some money for its unconstitutional programs, it asks the U.S. Department of the Treasury to sell some bonds and it always obliges. The Treasury shops the bonds to you, or me, or China. When there are no takers, it asks the Federal Reserve Bank to buy the bonds.
The Federal Reserve “buys” the bonds by printing paper or fiat money to give to the government to spend. When this happens with illegal counterfeiters, it erodes the buying power of the dollar, causing inflation. It is legal for the Federal Reserve Bank to do this. As a result, our dollar is now worth four cents in 1913 buying power.
A major step in achieving a free market in medical care is to end the Federal Reserve Bank. It used to be said that, “a dollar saved is a dollar earned.” If we continue to destroy the dollar, the saying will need to be changed to “A dollar saved is a penny earned.”