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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: TheBrit who wrote (126166)	11/2/2012 11:02:01 AM
From: RetiredNow	Read Replies (4) \| Respond to of 149317

Now you're getting to the root of it. Yes, bank credit froze and that was a serious issue. However, that was macro for a small period of time. Now let's look at macro over a long period of time. We have a debt based, fractional reserve currency. As I'm sure you know, what that means is that the way we create new currency is we create new debt. The more debt, the more currency. In addition, fractional reserve means there's a massive multiplier when new debt is created. So what caused the bubble that burst, that lead to credit freeze? Well, it was excessive bank credit that lead to a bubble. Then when the bubble burst, it was the snap back from excessive to too little credit. Do you see the problem? It was excessive credit, too low interest rates, fractional reserves, and new money creation from derivatives that cause the problem. Then to solve the problem, we all believe the Fed when they apply excessive credit, zero rate interest, lowered reserves, fictional accounting at banks, and derivatives balances larger than the last bubble. Look. This is all insanity and we're solving insanity with more insanity. The solution is to move to a non-debt based currency that is free from central banker control. A free floating currency redeemable in specie, with free floating interest rates on sovereign debt, would allow free market forces to keep excessive credit creation and deficit spending in check. With a free market medium of exchange, prosperity would be unleashed and would not be subject to the stealth tax of constant inflation. Central bankers and government control of currency are the root cause of every financial crisis we've ever had. Get rid of the central bankers and we won't have spasmodic, massive financial crises anymore. Instead, we'll have the natural ups and downs of business cycles, without the steroid effects of over-corrections to the upside and downside that central bank and sovereign interference engenders. Now, you see why I was a Ron Paul fan. I hate central bankers and centrally planned economies. They've never worked in favor of the 99% in the history of the world.