Saturday, June 28, 2008

2 comments:

Celeste Pantalones said...

Amen to that, brother!

Dad said...

Either Ron Paul is confused or I am confused. The Federal Reserve doesn't print money. It loans money at defined interest rates - money that must be paid back with interest. The Treasury Dept prints money. Unless I am mistaken, it only prints money to replace existing worn out bills turned in by the banking system. Cash goes by the name M1. Fed loans go by the name M2. If the Fed sells debt by auctioning bonds, it constricts the money supply M2. If the Fed buys debt by retiring bonds, it increases the money supply M2. Governments can cause runaway inflation by printing paper money and using it to pay government bills. I'm pretty sure we don't do that.