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October 22nd, 2011 
FAKE NEWS for the Zionist agenda 
Ron Paul
Wall Street Journal
October 22, 2011
To know what is wrong with the Federal Reserve, one must first understand the nature of money. Money is like any other good in our economy that emerges from the market to satisfy the needs and wants of consumers. Its particular usefulness is that it helps facilitate indirect exchange, making it easier for us to buy and sell goods because there is a common way of measuring their value. Money is not a government phenomenon, and it need not and should not be managed by government. When central banks like the Fed manage money they are engaging in price fixing, which leads not to prosperity but to disaster.
The Federal Reserve has caused every single boom and bust that has occurred in this country since the bank’s creation in 1913. It pumps new money into the financial system to lower interest rates and spur the economy. Adding new money increases the supply of money, making the price of money over time—the interest rate—lower than the market would make it. These lower interest rates affect the allocation of resources, causing capital to be malinvested throughout the economy. So certain projects and ventures that appear profitable when funded at artificially low interest rates are not in fact the best use of those resources.
Eventually, the economic boom created by the Fed’s actions is found to be unsustainable, and the bust ensues as this malinvested capital manifests itself in a surplus of capital goods, inventory overhangs, etc. Until these misdirected resources are put to a more productive use—the uses the free market actually desires—the economy stagnates.
2 Responses to “Blame the Fed for the Financial Crisis”
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Bank of America Trying To Stick Taxpayers With A $74 Trillion Bill By Moving Derivatives Into FDIC-Insured Accounts:
crooksandliars(.)com/susie-madrak/bank-america-trying-stick-taxpayers-7
I wish Alex would do a piece on EXACTLY WHO THE FED IS, being as specific as possible, even naming names, and what they have done. A flier would actually be great.
I think when people get this basic information, as simple as possible, it would make a difference. Even though I know, generally, I would love to have access to a concise guide. Most people just can’t explain it very well, I find.