Ironically, the author was an Argentinian. The Argentines are among the most economically stupid people this world has yet produced. Their collapse was preventable, with a shred of discipline and common sense.
Yet, it is to them we must look as we contemplate the specatacle of such an idiotic and short sighted America. I can’t blame him for deleting me, of course: he is stupid, and no debate would have gone his way. Hard to make a living if you are handed your ass in a public forum discussing your own column.
What it is essential to grasp is that the Federal Reserve—which might more accurately be described as “the private banking cartel to whom we the American people have entrusted the control over the value of our money and investments”—can only solve problems it creates.
On Bernanke’s own account—given here http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm –the Federal Reserve played the pivotal role in the crash which began the Depression, by first inflating the currency, then deflating it.
This article is misleading, however, in that he uses it to take shots at gold. Here is the simple truth: if money is tied to gold, and gold is in finite supply—which it manifestly is—then inflating the currency is much harder.
Keynesian socialists hate this, because the essence of their Fabian strategy is the price derangement that follows both inherently unproductive “stimulus” spending, and coupled—as today—with inflation.What needs to be understood about inflation is that it is not primarily an increase in prices. It is an increase in the money supply, which is to say money that COULD be spent. We don’t know where the money Bernanke is printing is going. Virtually everything this moral midget does is hidden from us. Prices only go up when money is competing for money. If he’s sending this money to foreign banks, who are keeping it on their shores, then we will see no price inflation at all.
What you have to grasp, though, is that money creation is inherently and necessarily wealth transfer. If I give you a check created from nothing, and you go buy something, I just took that something from the economy as a whole. I allocated wealth to myself.My series on the topics of monetary policy, the Fed, Keynes, and my fix for it all is here: http://www.goodnessmovement.com/Page14.html
Edit: Fontevecchia is the guy’s name. Me, I don’t mind putting on waders and heading out into the shit to meet the enemy on his own ground. If you are offended by the smell of manure which cannot even be used as fertilizer, avoid this name.