The bursting of a credit bubble is a deflationary event. In the case of the Great Depression is was massively deflationary. In order to understand how deflation happens, you need to understand how currency is created and how it can disappear. When you or I take out a loan from a bank the bank does [...]
Death of the Dollar
April 29, 2011 By Leave a Comment
“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which the check is drawn. When the Federal Reserve writes a check it is creating money.” -The Federal Reserve, Putting It Simply, [...]
Faded Glory
April 26, 2011 By Leave a Comment
The pattern of government war mongering, currency debasement, purposeful inflation, and excessive spending and growth of government is a pattern that has repeated throughout history. The pattern is nearly always the same: A sovereign government starts out with good money – money that is backed by something of tangible value, such as gold and silver. [...]
An Inflation Tale
April 25, 2011 By Leave a Comment
Nothing about the future is set in stone. Actions taken today do not inevitably lead to certain outcomes down the road, because something can happen tomorrow, or next week, or next year, that will negate what happened today. History seldom repeats itself – exactly. But this story about post-war Germany should make you take notice. [...]
