Science Talk

Guest

http://www.youtube.com/watch?v=v5Jdg8SxH7c

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". . . By increasing the supply of money, the Federal Reserve lowers
the value of every dollar that already exists. If the supply of
Mickey Mantle baseball cards were suddenly to increase a millionfold,
each individual card would become almost valueless. The same
principle applies to money: the more the Fed creates, the less value
each individual monetary unit possesses. When the money supply is
increased, prices rise - with each dollar now worth less than before,
it can purchase fewer goods than it could in the past. . . .

History bears this out. An item that cost $100 in 1913 (when the
Federal Reserve Act was passed) would cost $2014.81 in 2006. An item
that cost $100 in 2006 would have cost $4.96 in 1913. As we can see,
the dollar has lost nearly all its value since the Fed was
established. Now, if the gold standard had brought about such an
outcome, we would never hear the end of all the howls of outrage. But
the Fed does it and . . . utter silence. The Fed has managed to
insulate itself from the kind of criticism that is normally directed
at all other institutions that harm Americans."

Ron Paul
From, "The Revolution - A Manifesto"