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2 Comments
- antifed1, on 07/23/2008, -0/+3Writes Bill Sardi: Of course, it’s the Fed that got America in this jam with fractional banking (banks loan out $10 for every $1 deposited) and fiat money policy (prints money at the whim of the government). Bank depositors today are paid about 2.6% interest while the stated rate of inflation is about double that figure. The actual rate of inflation is much higher still.
- Rich333, on 07/27/2008, -0/+2Over the next few months, bank failures will cause momentary deflation, but it won't be anywhere near as great as what was seen back in '29/'30, because the Fed will be dumping money back into circulation, via massive bank bailouts, to compensate. Just bailing out Fannie Mae and Freddie Mac will cause the dollar to lose about a quarter of its value. It's not a good idea to keep cash in banks right now, but it's also not a good idea to convert it to precious metals or stabler (for now) foreign fiat currencies just yet, because the value of the dollar is likely to go up over the next few months, as banks continue to fail and the money supply contracts. Once the FDIC is broke and the big government bailouts begin, that's when we'll see hyperinflation and the crash of the dollar. Next year should be a good one for agorist currency dealers.
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