If our money was backed by gold, people couldn't just start to create new money. They would have to trade with someone else that actually has gold with them. Essentially, they would have to to find a suitable spot to build a gold mine, then actually do some work and dig up the gold.
"Not something I can imagine our “money elves” at the Fed getting down to whenever they feel like playing God with the economy." - Ron Paul
There is one answer to America's inflation problem, and that is too stop making money from nothing. But we’re already so stuck, that the one way to really effect our money supply is to higher interest rates so that people pay back their loans quicker and borrow less money from the banks, which would essentially lower the amount of money in the country.
"However, higher interest rates might very well crash the economy. So the Fed’s current “solution” to overcoming inflation is… creating even more of it." - Ron Paul
No comments:
Post a Comment