Liberty Maven

We’ve written about The Daily Reckoning in the past, and it comes highly recommended for those interested in keeping up with the economy, investing, and currencies. Today’s issue mentions Ron Paul in praise, as usual.

We asked Congressman Ron Paul specifically about inflation when we interviewed him for our documentary – since he has been notoriously outspoken on the topic. Here’s what Dr. Paul had to say:

“Inflation is very simple – when government arbitrarily out of thin air prints money, or creates money in credit out of thin air. When I talk to many teenagers, grade schoolers, they seem to have no problem comprehending the fact that if you just create a lot of money, it’ll be like Monopoly money and it won’t have value. 

“When you print that money, the value of that dollar has to go down and then one of the consequences of inflating the money will be higher prices. But there are a lot of other problems, too, with inflating; it causes financial bubbles and it causes a lot of economic distortions and unemployment…but inflation is very simple. When governments create new money out of thin air, you have inflation.”

Ah…if only everyone realized it was that simple.

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