Liberty MavenRon Paul: The Neo-Alchemy of the Federal Reserve
December 2nd, 2008 12:58 pm | by Mike Miller | Published in Bailouts, Banking, Big Government, Constitution, Debt, Economics, Federal Reserve, Free Market, Liberty, Money, Politics, Ron Paul, congress, government spending, inflation | 0
In Ron Paul’s most recent column (Texas Straight Talk), he discusses the Keynesian loonies running the Fed who say that the $8,000,000,000,000.00 in bailout commitments is “just a start”, and again calls for the end of central banking.
As the printing presses for the bailouts run at full speed, those in power are no longer even pretending that the new giveaways will fix our problems. Now that we are used to rewarding failure with taxpayer-funded bailouts, we are being told that this is “just a start,” more funds will inevitably be needed for more industries, and that things would be much worse had we done nothing.
The updated total bailout commitments add up to over $8 trillion now. This translates into a monetary base increase of 75 percent over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere – it is created from thin air, and devalues every dollar in circulation. Dumping money on an economy, as they have been doing, is not the same as dumping wealth. In fact, it has quite the opposite effect.
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