Saturday, May 16, 2009

The Greatest Depression You Never Heard Of


In case you doubt Ron Pauls claim.
One of the fallacies of modern economics is the idea that a central bank is required in order to keep inflation low and promote economic growth. In reality, it is the central bank's monetary policy that causes inflation and depresses economic growth. Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks. All other things being equal, inflation results in a rise in prices.
Watch the very interesting presentation by Thomas Woods author of Melt Down on a covered up example of how the government doing nothing can be the best thing it can do to cure an ailing economy.

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