Campaign For Liberty: Flick

Kevin Flick
Flick
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Location: Plymouth, IN
Last login: 10/01/08
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Posted by Flick on 10/01/08


Source: network.nationalpost.com

"For decades, Austrian School
economists have warned against the dire consequences of having a
central banking system based on fiat money, money that is not grounded
on any commodity like gold and can easily be manipulated. In addition
to its obvious disadvantages (price inflation, debasement of the
currency, etc.), easy credit and artificially low interest rates send
wrong signals to investors and exacerbate business cycles.

Not
only is the central bank constantly creating money out of thin air, but
the fractional reserve system allows financial institutions to increase
credit many times over. When money creation is sustained, a financial
bubble begins to feed on itself, higher prices allowing the owners of
inflated titles to spend and borrow more, leading to more credit
creation and to even higher prices."




Categories: Finance
Tags: Economy, karl marx, Austrian School

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