Free Market

The fundamental flaw is this idea that we need the government to control the market and the Federal Reserve to govern our money without accountability. Since 1913 the dollar has lost 92% of its value. Why is it that beginning in 1913 our dollar has lost so much of its value? There is even a nifty Inflation Calculator to explore this notion of inflation.

In 1913 the Federal Reserve was created. This is the central banking system of the United States of America. It allows the fed supreme control and benefits only the party elite and in no way checks inflation. Interestingly enough, the mission statement of the fed is the following: “if the economy is showing signs of overheating and inflation pressures are building, the Federal Reserve will be inclined to counter these pressures by tightening monetary policy.” Yet, they do this by injecting billions of dollars out of thin air? How is that not inflationary? Why is it that they don’t get it that we are living beyond our means and destroying the value of the dollar?

It makes no sense at all what they do except that it might be benefiting an elite group of partiers in DC. One day their party will run out at our expense.. it already is. The rest of the world has pulled away from our dollar with China and India buying gold instead of our treasuries! They are wise in doing so. Take for example the gold price in 2000. At roughly 300 dollars an ounce and now over 1000 dollars! Gold doesn’t just go up for no reason.  Americans are placing their trust in gold not the dollar.  Interesting.

The Hoover Institution says this about the fed in an article titled The Fed’s “Depression” and the Birth of the New Deal written by Lawrence M. Stratton and Paul Craig Roberts, “the Federal Reserve is the most powerful institution of a new order that believed in the efficacy of government and its ability to do good. The same Federal Reserve caused the Great Depression when its wise men made a series of cumulative mistakes that contracted the money supply by one-third and wiped out purchasing power in an unprecedented fashion.

Economists could not at first explain the Depression because they were unaware of the dramatic shrinkage in the quantity of money. It was not until Friedman and Schwartz dug into the facts that the culpability of the Federal Reserve became known.

Principles of Economics by Karl Menger.

Partner Financial Services

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