In Case You Haven’t Been Keeping UpOctober 14th, 2010
…here is a short and sweet write up of our fragile financial position right now. Thanks to one of our Silver Circle Agents, Darryl Perry.
With the spot price of silver closing in on $25/ounce and gold nearing $1400/ounce and climbing, many people are thinking they should sell their metals. Instead, people should buy silver and gold, as the “price” will continue to climb because the value of the dollar continues to fall.
Since 1913, the value of the dollar has fallen over 97% due to the inflationary policies of the Federal Reserve; the privately owned central bank with a government issued monopoly on the issuance of paper currency. I don’t think anyone should be allowed to issue paper currency, much less have a government protected monopoly on such activity. Some people will dispute the fact that Federal Reserve policy has caused inflation (something the Fed admits). I had a conversation with someone a few days ago about the Fed, the person told me, “the Fed doesn’t inflate the money supply, government spending does. And the reason things cost more isn’t because of an increased money supply, but an increase in the minimum wage.” They’re looking at the symptoms and saying that’s the problem. It would be akin to me going to a doctor bleeding with a bone sticking out of my forearm and the doctor trying to stop the bleeding without setting the bone. You can’t fix a symptom (spending, minimum wage, etc) until you fix the problems; Federal Reserve inflationary policy & fractional reserve banking.
The Fed admits to controlling both of these things, just read the Education Section of the Federal Reserves website:
“The Fed is best known for its role in making and carrying out the country’s monetary policy – that is, for influencing money and credit conditions in the economy to promote the goals of high employment, sustainable growth and stable prices. The Fed does that by maintaining inflation at a rate that does not affect business or household spending decisions.
What happens when money and credits rise?
Inflation is caused by excess growth of money and credit relative to the supply of goods and services in the economy. Money includes cash in circulation, plus the deposits that people and businesses have in bank accounts; credit refers to the funds that banks and other lenders can lend. The Fed must make sure that money and credit don’t grow too rapidly or slowly.
How does the money creation affect interest rates?
The Fed changes the money supply by increasing or decreasing reserves in the banking system through the buying and selling of securities. The changes in the money supply, in turn, affect interest rates.” (emphasis added)
If you want to learn more about the Federal Reserve tune into our blog every Friday for the latest news. Subscribe and spread the news! See you this Friday with more on the Fed!