The Biggest Ever Counterfeit Ring is Still Eluding US Secret Service.

In 1865 US Secret Service was established with an original mandate to investigate the counterfeiting of the US currency. The Secret Service is still mandated with this mission. And what happens when the Government starts to “counterfeit” its own currency? Who is watching the watchman?

The mission of Federal Reserve System founded by Congress in 1913 as a central bank of the United States, was to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

Today every major economy is operated via fiat currency exchange system. While in theory fiat currency used together with correct monetary policy should provide “required” supply of currency in order for economy to achieve peak performance. In practice fiat currency supply is always at a mercy of the regulating body deciding on “appropriate”  level of monetary supply in economy. At the very basic level, a modern economic system requires monetary supply to exchange goods and services produced. Having just the right amount of monetary supply in the economy, is important to facilitate exchanges of all goods and services produced. Not having enough monetary supply to conduct every transaction, will limit the real economic potential. Having too much monetary supply leads to currency debasement and inflationary pressures on goods and services.

As when someone counterfeits currency, something is “gamed” in the system. A unit of purchasing power is acquired without expanding or compensating for a unit of goods or services in the “real” economy.

When a regulating authority over-stimulates our monetary supply same effect is derived. All entities used as tools to facilitate regulation of monetary supply generally acquire these “gamed” units of purchasing power. Every unit of purchasing power not acquired through intended process of exchanging goods and services, steals from “real” economy by diluting currency. Purchasing power is transferred from “real” producers of economic activity, to entities that simply act as tools for monetary policy facilitation.

The villains are always in plain site if you know where to look. Year after year they are hard at work “counterfeiting” exorbitant amount of US monetary supply. Largest “counterfeiting” operations ever for anyone to notice. Yet they have been “cleverly” eluding US Secret Service.

Can US Secret Service really be “Keystone Kops”?