It is heartening to know I’m not alone in worrying about the impending disaster we face because the value of our money is MADE UP by bureaucrats. Sri Lankans are listening to Ron Paul.
“Few Americans give much thought to the Federal Reserve System or monetary policy in general,” Ron Paul wrote in his column this week.
“But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued.
“The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration.
“The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation.”
Ron Paul is one of the few politicians of the world who understands the intricacies of fiat money. He is on the House Committee on Financial Services.
Why this stuff is appearing in a Sri Lankan business rag and not here eludes me.
“So while Fed policies encourage younger people to over borrow because interest rates are so low, they also punish thrifty older people who saved for retirement.
“The financial press sometimes criticizes Federal Reserve policy, but the validity of the fiat system itself is never challenged.”
It isn’t rocket science – you can only make up so much value before even the dumbest of the dumb realize the entire system is just a pipe dream. And then the currency gets switched to something like bullets. If I have time in this life, I’m going to pursue an economics degree so I can hope to explain these basics more eloquently.
Our current money system is only as effective as the amount of faith the people who use the money have in it. When the faith tides ebb, the society leans towards collapse. That’s not to say our national financial house is going to collapse, but it certainly could. A house built on faith alone is not a house I would live in.
Someone explain to me how I’m wrong. Make sure you’re an economist and are ready to send me a copy of your advanced degree and the titles of some of your books. I want to believe we’re not headed for disaster.