The Federal Reserve is neither fedaral nor holds reserves: it is a cabal of PRIVATE bankers who are in the business of loaning money. They have used Fannie and Freddie as a conduit to pump the US economy with oceans of cash...upon which they collect interest as bankers are wont to do.
The FED, I posit, is not the SOLUTION to our economic malaise but rather the SOURCE of it. THe Federal Reserve MUST be abolished before it finishes the job of taking over the United States entirely.
Our thinking about inflation is all muddled because we have not defined our terms correctly. Inflation, quite simply, is pumping excessive money into the economy. Prices MAY go up as a result of inflation, or they may go up for other supply/demand reasons. Is oil so expensive because of inflation? a cheap dollar? increased demand? decreased supply? Who knows?
By the same token, when money disappears from the economy, that is deflation and one possible outcome is lower prices. When stock markets and real estate markets lose value, that money disappears from the economy and the economy deflates.
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The FED, I posit, is not the SOLUTION to our economic malaise but rather the SOURCE of it. THe Federal Reserve MUST be abolished before it finishes the job of taking over the United States entirely.
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By the same token, when money disappears from the economy, that is deflation and one possible outcome is lower prices. When stock markets and real estate markets lose value, that money disappears from the economy and the economy deflates.