digital divide network - article database

Inflation is a serious problem that will affect any society overtime. Serious monetary stresses are created that will affect the most basic of needs such as food for your family to eat, fuel for your car or medicine to keep you alive. Inflation makes the prices you pay increase on the exact same products or services you were buying or using before. Most people will realize these price increases as they reflect on what these items had cost them only 1-2 years ago. Why?

Inflation is created by directly increasing the money supply in an economy. When this happens it creates a watering down affect on the money supply. If you take newly created dollars and add them to the economies money supply, along with all the other dollars that were already there, we get the total money supply. The larger new money supply will actually be worth less in purchasing power than the supply before which had fewer dollars in it and before the additional money created was added. It costs more in dollar terms for goods and services, not because these things are worth more money but because it takes more dollars to buy them as the dollar’s value now is less. In simple terms that is inflation.

Central Banks such as the Federal Reserve Bank for the United States are in charge of creating money. The US dollar is the same as all other global currencies in the world today. The dollar and all other fiat currencies are backed by nothing more than the faith and promise of the government who prints it and the faith in its people who use it. Central Banks such as the Federal Reserve can “print money out of thin air.” Simply but pressing the “start button” on their printing press.

Central Banks use different tactics in controlling the supply of money. But the one thing to be sure of is that these tactics that are used, are always controlled in the best interest of the banks. Governments and their citizens always play second fiddle when it comes to the banks being in charge. When money is printed the central bank earns interest on each bank note or dollar bill printed.

One cure to keep inflation under control permanently is to force government law makers to do their jobs. First by forcing them to pass new legislation that removes the power from the central bankers on money printing. Thus handing the governments back their own power to create and control the money supply through the US Treasury and alike. Next “Sound Money” once again must be injected into society.  Sound money is real money that has been backed by tangible assets such as physical gold or silver.

Additionally further legislation needs to be created and passed that will abolish these private banking cartels. Including entities such as central banks like the US Federal Reserve Bank which is a privately owned bank. Furthermore there is nothing federal about the Federal Reserve except a cleverly placed name.

Taking the control away from the powerful banking elite is paramount.  As for decades these private banks have been heavily profiting by controlling governments and funding wars completely outside both the government and general public’s view. Worse yet they have never been required to answer any questions from anyone inside or outside government to justify any of their actions.

Tom Genot -

About The Author:

Informational news, books, articles and videos on investing in gold and silver and where the best places are to buy it. You will also find informational resources to educate you on alternate forms of investing and information on preparedness, for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot provides information and resources helpful to everyone. Insure you're prepared, while time is still on your side. Check us out at http://www.coinbullion.net