Ya know, our money system works kind of like four guys in a room that want to play cards, except that they have no cards of their own so they borrow the cards from a card shark. Now the card shark wants the four card players beholden to him, so he charges interest. How does that work? The players print more cards or one of them goes bankrupt. The card shark is made up of the Federal Reserve, the Treasury Dept., and Congress.
As the Austrian School of Economics sees it, in 2006 we had three times as much money in circulation as we did in 1991. In 2007 we had two or three times as much money in circulation as we did in 2000 or 2001. Now, once we lend into circulation all that money that the Fed has placed there we will have we will have three times as much money in circulation as we had in 2008. That is the biggest reason that the value of the dollar has lost forty percent of its value, against gold and other currencies, over the last ten years.
Generally when a nation reaches our age and economic condition it does default on its loans either outright or through the printing press and the form of Government changes. Our own nation is headed down that trail. As a nations currency goes, so goes the nation.
Ron Paul’s notion of the Federal Bank (Federal Reserve) forgiving the Treasury Dept. of its debt is not all that far off base if we read the minutes of the last meeting. In order to find any such thing of that magnitude in history we need to go back to the God fearing nation of Israel where they were mandated to forgive debt and return land back to its original land owner during the Fifty Year Jubilee. We don’t need land transfers but we do need to do something about the debt crises. Israel was a strong nation for a vary, vary, vary long time when they did that.
Ron Paul’s Campaign to restore America and deal with the debt in a meaningful way is a first step to restore fiscal sanity and then we need to reform our economy to a system based on land and labor, the genuine units of production.