"(...)In the last five months $213 billion new dollars have been added to the U.S money supply (M2). Amazingly, no one in the mainstream financial community questions this.
Looking over some past Federal Reserve archives one finds that $213 billion was all the money in circulation in 1962. Currently it is $6.2 trillion
(...)
My late friend, Nobel laureate (economics), F.A. Hayek told me years ago when I visited him in Germany that decades before he had a discussion with the renowned economist John Maynard Keynes, where Keynes told him that he (Keynes) had made a terrible mistake and was prepared to write an important piece to disavow deficit spending and hence paper money creation. But two weeks later Keynes died. World governments have all embraced Keynes’ mixed up theories because it gave them a convenient solution to cover up their economic mismanagement. Because of this, huge debts and huge piles of paper money have been fostered on populations creating what is now an economic tidal wave that is now on the horizon.
As inflation is always the result of excessive expansions of money in a society, we should simply do the math. Huge money increases equal huge producer and consumer price increases eventually. There is no doubt about the money supply increases, so there should be no doubt about a strong and prolonged inflation that has obviously started.(..."
THE FED AND THE GOLD PRICE, By Kenneth J. Gerbino, June 18, 2004
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