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Sunday, February 18, 2007

Posted 2/18/2007 05:30:00 PM by Douglas

Fascinating article from the Honorable Ron Paul on the dangers of our fiat dollar. There's only one way for our government to pay for everything: Inflation.
A country that is getting poorer cannot pay these bills with higher taxation nor can they find enough excess funds for the people to loan to the government. The only recourse is for the Federal Reserve to accommodate and monetize the federal debt, and that, of course, is inflation.
The Fed is going to run the presses non-stop to pay for the war, so if you've got any money in the bank, maybe you should consider getting hip-deep in debt. It's the only way to keep from getting the last digit knocked off your savings by poor policy. Of course, Mr. Ford is correct:
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." — Henry Ford
Sad, but true.

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