Originally Posted By: DT466E_bus
Wow I learned somethings..
Another thing to learn, Bernake (fed president-another lightweight intellectual) wants to print $600 billion and fling it into the economy.
Inevitable result: High inflation, more instability in international markets, and more nations moving away from the dollar as a store of value.
why? when the government keeps debasing the currency, we are no better than any banana republic about to go [censored] up.
Ever since we went off the gold standard during Nixon's reign, the fed has been monkeying with the money supply causing a lot of the ups and downs.
Ever wonder about fractional banking: bank can have $2 on hand, with a 5 to 1 reserve rate, it can loan $10 based on the $2 it has on hand, creating $8 from nothing. Then it gets back interest on $10, meaning interest on the $2 it had and interest on $8 out of thin air. And it gets to loan the $10 out again at a 5 to 1 ratio.
Difference between a bank and a loan shark? the loan shark actually loans you the money he has. Bank just creates it by an accounting trick allowed by the fed. Costs are approximately the same for both, only one is sanctioned by law and the other is illegal because he charges true cost of the money.
Want to really get rich, own a bank and you can legally steal hand over fist from anyone who borrows from you.
Interesting reading about Austrian Economics on
www.mises.org
Dan
