Will you and your family eventually pay for the Fed's bailout decisions?
*Texas Straight Talk, by Congressman Ron Paul, December 5, 2011:
''Euro Crisis Destabilizing the Dollar
In response to pressure from Wall Street, the White House and central
banks in Europe, the Federal Reserve last week drastically cut interest
rates for currency swaps to benefit troubled European banks. This
will flood world markets with more dollars and will soon mean rising
prices for every American at the grocery store. This extra
liquidity will temporarily ease the cash crunch for irresponsible
bankers, but in the long run it will make the situation much worse for
consumers all over the world. Equities markets registered big
gains at the news, but only for a day. Make no mistake - this is
not capitalism, and this is not how a free market operates. In a
free market, bankruptcies happen, even to large banks. We must
remember, free markets are the true and best regulators of financial
mismanagement.
By contrast, under our current form of special interest corporatism
certain businesses are granted too-big-to-fail status and are never
allowed to go bankrupt. They keep profits generated during the
good times generated by the Fed's monetary inflation, yet their losses
are socialized through inflationary bailouts. This means you and
your family eventually pay for the Fed's decisions because every dollar
you earn is worth less. Few people make the connection that they have
enriched bankers in Europe through doubling and tripling prices on
milk, eggs, gasoline, and clothing, but that is exactly what is
happening. The increased pace and size of these types of
desperate financial maneuvers means price inflation will hit sooner and
far too fast for wages to keep up. This is how the middle class
gets wiped out, as has happened so many times in the past when fiat
money fails.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317