The best way to understand QE3 is that the private bank called the Federal reserve is creating digital credit and giving it to other banks at the expensive of you and me. The cover story is that the banks are supposed to use that money to create loans to spur the economy. Don't believe it. The banks have plenty of cash on hand if they wanted to loan money.
The money given to the banks comes from nowhere. It is money without a claim. No energy or labor created that money. The first recipients of that money are able to take advantage of it's full purchasing power. As that money works it way into the system it becomes worth less and less.. until eventually it lost most of it's purchasing power, at which time it is in the hands of the serfs.
A gold standard is not the answer. Gold is supposed to keep the fed from creating too much money. The problem is history proves that when governments want to create more money the limited amount of gold did not stop them. They simply passed new laws allowing them to rise the reserve ratio between currency and gold.. the end result being the same as the current situation.
I know it's difficult for Ron Paul supporters to accept this but it's the truth.
A gold system is not going to change things in a corrupt world.. What's going to change things is to get the rodents out of government/banking and to replace them with people of high character. It's the corruption. It's the criminals. It's the lobbying groups. It's not fiat that's the problem. Fiat could work just as well as gold or anything else. You don't need a gold standard to limit money printing.You need high minded moral people in the right positions and You need laws enforced.
Our whole problem, The worlds problems are the cause of criminal actions and unenforced laws. Guns don't kill people, people do. Fiat does'nt harm people, bankers do.
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