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01-23-2008, 01:30 AM #6
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Fed cuts interest rates to 3.5%
The problem is The Federal Reserve is a private bank, and there should be no central bank. The problem is not that the interest rates are too high or too low. The problem is the Federal Reserve itself. When you print more money, that makes everyone else's money worth less, and it causes inflation.
I like Ron Paul's idea of a competing currency based on gold and/or silver. We are competing with currencies all over the world anyway.
The reason The Fed would not want that, is because they would lose power. Kind of like why the federal government here in the U.S. does not want to legalize weed. It is something hard for them to control and tax. Also Big Pharma would have a hard time profiting from weed were it legal, since it's medicine you can grow in your home.
Think about who would stand to gain, and who would stand to lose power and money, if the Federal Reserve was abolished eventually.
The price of gold, oil, food, is all soaring. Why? We are in a recession. Inflation makes our money worth less, but gold, oil, and food all hold their value.
How does one bank have a right to just print money and call it theirs to loan? Imagine if you suddenly said you were a bank, and you printed a million dollars, and said, "hey who wants to borrow this?" You'd be tossed in jail for creating counterfeit money.
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