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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Rolla Coasta who wrote (32150)	4/2/2008 12:02:23 PM
From: Rolla Coasta	Respond to of 219674

Ron Paul putting tough Q's to uncle Ben quote from msg board He asked the core question and raised the main issue: The Fed is asked to fix what the Fed has caused itself. The business cycle is nothing but a result of tinkering from the top with interest rates though reserve draining/filling, target rate changes and wide swings in credit availability as permitted through the massively amplifying effect of fractional reserve banking. That means our economy is not being driven by free market supply/demand balances of goods and services, but by the availability of credit and the monetization of credit through spending and indebtedness invariably followed by defaults and contractions of credit. Money runs the economy instead of the economy running money. That is really where the problem is. The Greater depression followed the crash of the stock market which was a bubble created by easy credit and low margin requirements. The fix was hampered by the gold standard (remarkably left out by Bernanke today, even though that is what he blames the crunch of the 30's on), but it was the gradual deviation from the gold standard through expansion of the money supply in the early 20's which caused the problem to begin with. un-quote