francisco
04-21-2012, 09:36 AM
Great article fully supports what Ron paul has been saying
How the Fed Favors The 1%
The Fed doesn't expand the money supply by dropping cash from helicopters. It does so through capital transfers to the largest banks..
By MARK SPITZNAGEL
A major issue in this year's presidential campaign is the growing disparity between rich and poor, the 1% versus the 99%. While the president's solutions differ from those of his likely Republican opponent, they both ignore a principal source of this growing disparity.
The source is not runaway entrepreneurial capitalism, which rewards those who best serve the consumer in product and price. (Would we really want it any other way?) There is another force that has turned a natural divide into a chasm: the Federal Reserve. The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power.
David Hume, the 18th-century Scottish philosopher, pointed out that when money is inserted into the economy (from a government printing press or, as in Hume's time, the importation of gold and silver), it is not distributed evenly but "confined to the coffers of a few persons, who immediately seek to employ it to advantage."
Read full article at:
http://online.wsj.com/article/SB10001424052702304356604577343430113336486.html
How the Fed Favors The 1%
The Fed doesn't expand the money supply by dropping cash from helicopters. It does so through capital transfers to the largest banks..
By MARK SPITZNAGEL
A major issue in this year's presidential campaign is the growing disparity between rich and poor, the 1% versus the 99%. While the president's solutions differ from those of his likely Republican opponent, they both ignore a principal source of this growing disparity.
The source is not runaway entrepreneurial capitalism, which rewards those who best serve the consumer in product and price. (Would we really want it any other way?) There is another force that has turned a natural divide into a chasm: the Federal Reserve. The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power.
David Hume, the 18th-century Scottish philosopher, pointed out that when money is inserted into the economy (from a government printing press or, as in Hume's time, the importation of gold and silver), it is not distributed evenly but "confined to the coffers of a few persons, who immediately seek to employ it to advantage."
Read full article at:
http://online.wsj.com/article/SB10001424052702304356604577343430113336486.html