printYou know the country’s commentariat has traveled some distance when PBS’s Paul Solman concedes that, given the role of the Federal Reserve (and, presumably, Fractional Reserve Banking) in the economy, it is “not a zero probability event here in America” that “the US could go the hyperinflation route of a Zimbabwe or Germany, freeze, face increasingly punitive interest rates and eventually require drastic overhauls.”
Solman, who still invests in Treasury, and is optimistic against all odds, also admits that “Since the Federal Reserve was created and got into the act in 1913, the U.S. dollar has lost somewhere between 94 percent and 99.7 percent of its value. (See MeasuringWorth.com for a range of conversion options: constant basket of goods, unskilled wage, etc.)”
But because Solman thinks that the debasing of the coin by the Fed also coincided with America’s becoming “the world’s dominant global economy,” he is not that concerned. That’s what happens when correlation is confused with causation.
The Republic has managed to thrive despite the Fed, not because of it.
Facts are now out in the open which make it impossible for the ivory tower propagandists to conceal them without looking like dopes or propagandists. So instead they tip toe around the facts and drop pellets hoping that people are foolish enough to think that the pellets are shining nuggets of gold advice!
“The Republic has managed to thrive despite the Fed, not because of it.” True as long as we ignore the China, Russian, and Japanese dollars that have kept it propped up over the last 46 years. What could we have built in the same time period with Austrian Economics?
Amen on correlation and causation! Much of the success of American Industry in the 20th was in spite of the Fed and increasingly punitive government regulation.
20th Century that is
One Day Austrian Analysis is going to kick the door in to the mainstream … Then Katy bar the door LOLLL !!!!!
“The Republic”? The Republic? I think it ceased to exist after the surrender at the Appomattox courthouse! Since then, it has been “The Empire”.
“The Republic has managed to thrive despite the Fed, not because of it.”
Yes, so far but, not much longer.
The catastrophe is fast approaching: between 2013-2015 is my guess. 2014 if I had to pin it down. Those who survive mostly intact will have gotten their money out of dollars and their investments out of this country before then. That’s the only way to keep them out of the hands of the looters, er government.
Remember Argentina required that people’s retirement funds prop up the national bank. This has to be under consideration by the Fed as well.
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/5504137/Argentina_seizes_pension_funds_to_pay_debts_Whos_next/
Does anyone who visits this website think our government and Fed are more honorable than the fascist Christina Kirchner?
Good luck.
What happens when we are all forced into the bread line and there is no bread? It won’t be pretty.