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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bakunin who wrote (70911)	11/23/1999 7:42:00 AM
From: Earlie	Read Replies (1) \| Respond to of 132070

mb: Thanks for your comments. That is what I have always thought but it pays to check out these types of comments. I appreciate the reference material and have already printed it off for later digestion. Best, Earlie

To: Michael Bakunin who wrote (70911)	11/23/1999 9:45:00 AM
From: Mike M2	Respond to of 132070

Mike, what is important is to realize that fractional reserve banking allows the gov't to inflate ( increase money & credit) - a subtle form of taxation. With this system the banks reap huge profits from loans for money they don't have. The vast majority of the increase in the money supply has come from the banking system. That is a major reason why the bankers especially Paul Warburg of Kuhn Loeb lobbied so heavily for the creation of the Federal Reserve. I don't believe the part of all the foreign banks owning the Fed but bankers, Wall St, and the rich gain disproportionately from the system. Yes I know the story about the lender of last resort but the decline in the value of the dollar since the creation of the Fed speaks for itself. The way the system is set up few people enrich themselves at the expense of the masses. Those who are hurt include savers, pensioners, people living on fixed income, workers. It is a way to transfer wealth from the poor to the rich. The rich can take on debt to buy real estate - an inflation hedge and pay back the loans with cheaper dollars. Murray Rothbard wrote a book " The Case Against the Fed" available at mises.org fame.org has some excellent articles elaborating on my brief comments. mike