andyzohoury (November 30, 1999 at 12:00 am)

Apparently our leaders dont watch Ducktales... Oh wait, that right, they are doing this on PURPOSE. The FED is not part of the gov, they are an independent bank that loans money out to the gov and other big companies. They control the value of the money and hence they control AMERICA and every aspect of our lives. We are slaves to the banking corporations of this world...Do some research on what Ron Paul as to say, and watch the Zeitgeist movie. ZEITGEIST explains a lot about the FED...

areitu (November 30, 1999 at 12:00 am)

Too bad I can't thumbs up this comment (it doesn't give me the option). My series of comments were meant to point out the extreme opposite of hyperinflation, something that doesn't get talked about much. I hope my point was conveyed without any attachment of ill will or sarcasm.

prattleon (November 30, 1999 at 12:00 am)

ah yes...i hear ya. you can always look for the original episode. it's called "dough ray me."

spamdude1 (November 30, 1999 at 12:00 am)

The comment added about the fraudulent monetary system in the video. I was saying that would make it too controversial to use the clip in school.

prattleon (November 30, 1999 at 12:00 am)

economic freedom requires a currency that is determined by the market. it doesn't have to be gold or silver.

prattleon (November 30, 1999 at 12:00 am)

fraudulent? you'll need to elaborate on that.

charcoalpet (November 30, 1999 at 12:00 am)

Why can't we have a President who understands this simple concept before our country goes broke? Ron Paul please.

janbaer1 (November 30, 1999 at 12:00 am)

The central banks could have a standing offer of a very high value, say $10,000 per ounce of gold. That would get some people to sell off whatever they own, but it would put a stable value to the money. If people felt that the country's central bank was doing a poor job, and devaluing the money, they would trade the paper money for gold. If the bank did a good job, they'd trade their gold back for paper money. As for deflation, I'd rather invest than sit and get a low 1% annual deflation.

areitu (November 30, 1999 at 12:00 am)

And the risk with a gold-backed currency is Deflation: If there is any disruption in the price of gold, or production of gold. ALL of the mined gold in existence, even at 1000/oz is nowhere near the current value of the US. The inability to print money (in a conrolled fashion) when needed means the economy grows slowly. Don't take this as an endorsement of the Fed--I think a responsible policy, inflationary or gold-backed, is a good solution but want to make everyone aware of pro/con of both.

areitu (November 30, 1999 at 12:00 am)

Say you make 5k per month, but with deflation, say you make 4k a month now. You still owe 100k. Farmers were most vulnerable to this. Banks and creditors have the advantage when you are at high risk of default from this simple mechanism. How do you think John D Rockefeller and JP Morgan got so rich? In a controlled inflationary policy, it benefits debtors. Say you make 5k a month and in 10 years you're making 5.5k a month from inflation. You still owe only 100k on your property.