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by ficwriterpaul on August 29th, 2009
I am no economist but have read much on the subject. Our economy is now based on debt. Debt comes from the air literally. A bank can loan more money than it has by law and that money is just the idea of money and there is no real cash to back it up. I can't remember the exact percentage banks are allowed to loan over their assets but when a bank loans money and that money is deposited into another bank it is loaned on again at a lesser percentage. It is a downward spiral waiting to collapse. I would never invest largely in the American dollar. Inflation is, from my understanding, caused mostly by low interest rates. Simply, whatever the problem is, we need to return to the gold standard which helped this country become what it is today.
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You're reading Isn't inflation necessary for the economic developement of the US? Doesn't the US count on inflation to drive the economy forward? If they are planning to kill the dollar, why are you so heavily invested in it?
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Comments
Beautiful, thank you. +3
by Chad1983 on August 29th, 2009