Economy

[freethinkingg]

Wow, another huge bank going under. This is no looking good at all. I think we are seeing the beginning of a financial crash. I wish McCain would address the problems with the Federal Reserve system which is creating all this mal investment and inflation. So what does John McCain have to say about the economy, pretty much the same thing as Bush, "

Comments

[freethinkingg]

The Fed is a bad thing because it causes inflation through t's debt based, fiat monetary system. With fiat money, it's value comes through confidence in it, legal tender laws and taxes, basically. It has no intrinsic value, unlike gold, silver, platinum, palladium, copper, land, or any other commodity, since it's supply is virtually unlimited. Only running out of paper will stop it from being made(but that is only physically, not the computer entries which "make" most money today. The more there is of something, the less value it has. This is where inflation comes from. It also encourages banks to make loans to people that they have a better than average shot of not paying, since it allows fractional reserve banking. Fractional Reserve banking allows a bank to "create" money from your loan signature by allowing a bank to lend money it doesn't have. It can lend roughly 7 or 8 dollars out for every dollar it has in it. Also, when the bank "creates" the loan, it only ever creates the principal, never the interest, making it impossible for everyone to ever pay their loans to banks.

Basically, by allowing the Federal Reserve to run the monetary system of America, it turned our entire money system into a giant debt which can never be paid off.

Source(s):
http://www.gold-eagle.com/editorials_01/...
http://www.kwaves.com/index.html
http://video.google.com/videoplay?docid=...
The last is a good video called "Money as Debt", which explains the system and it's history very well.

[gopdude]

NO, no, no, our debt is caused by the Government spending more money than its taking in. The fed is such a small part of our debt that worrying about is like complaining about a sun burn in the middle of a forest fire. The Goverment is like you but if you had no limit on your credit card and never had to repay it. I don't really like the "fed" but I trust it more than congress.
More over you sources are questionable Gold-Eagle makes money from people buying gold, I've never heard of Kwaves, and the video could not be watched. If you have libertarian views look at the Cato institute, or heritage foundation. Heritage is Conservative but Republicans and libertarians have the same view one the economy they only really differ on socal issues.