Epoch Times Joins Ron Paul RevolutionSubmitted by legalizeliberty on Mon, 01/26/2009 - 20:29
As the new year swings into full gear, most of the world is mired in an economic recession. But there are two sides to each coin. Each crisis is an opportunity for change and renewal. Perhaps this period will be the impetus for thinking and acting differently.
"For years, the inflationary rates of price increases were three to five times higher than what is officially published," claimed Roland Baader, German economist and author of the Book Money, Gold and Gamblers—On the Eve of the Global Economic Crisis.
Indeed. A visiting associate professor at the Vienna University for Economic and Business Administration elicited the comment upon looking at the latest inflation number: "Not even my boss's wife believes his statistics."
Even the good man’s wife doubted that present inflationary numbers, as circulated in many Western countries, represent the true spiraling figures.
Baader espouses a clear connection between "fiat money," which is money backed by physical commodities, such as gold, and "paper currency" that is often not backed by physical commodities, also called "Inflation Money." "Inflation Money" flourishes when the state prints additional money not backed by gold or other assets. Under the latter, a crisis is inevitable.
"Paper money always returns to its original value—zero," as the philosopher Voltaire had so aptly observed during the 18th century.
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