forces like inflation and deflation are engaged in mortal combat... It is a tiresomely predictable cycle. The Fed blows up a bubble. The bubble pops. To protect powerful financial interests from loss, the Fed hunkers down to either blow up a new bubble, or to try to reinflate the one that just popped.....
....Central banks around the world are no different. Europe is engaged in the same bubble/ bust cycle. Buying elections and the favor of the people, debtor governments borrowed and spent more than they could repay. The European Central Bank served the privileged banking cartel by created trillions of euros for banker bailouts and central bank bond purchases....
In the case of the Federal Reserve’s serial bubble blowing – the dot com bubble, the housing bubble, and the current bond bubble – the central bank drives the affair with the creation of state credit and fiat money.....
the central bank’s needless cycle of inflation and deflation destroys the people’s livelihoods, crushes their savings, and tramples their prosperity.....
By this time the damage should be familiar:
The median net worth of American families fell 40 percent between 2007 and 2010. Predictably, the middle class took the biggest hit, while the wealthiest families’ median net worth actually rose.
Between 10 to 11 million home mortgages are underwater; Almost seven percent of home mortgages are seriously delinquent, 90 days or more past due.
One in seven Americans is on food stamps. The cost of the programs has exploded, up 135 percent from 2007 to 2011Unemployment persists at depression-era levels If one wants to avoid the recurrence of periods of economic depression, one must start by preventing the emergence of artificial booms. One must prevent the governments from embarking upon a policy of cheap interest rates, deficit spending, and borrowing from the commercial banks.....The people will be trampled as long as central banking and fiat money persist.....
............................ By Charles Goyette
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