Joseph Salerno, an Austrian economist, reveals most of what you need to know about the Federal Reserve, inflation and business cycles.
Some interesting quotes or observations are the following:
- “The Fed is not an inflation fighter; it is an inflation creator.”
- The Fed causes recessions which are the free market’s means of striking back against government interventions and re-balancing the economy.
- The Fed has destroyed the value of the dollar.
- The dollar is only worth 5 cents versus what it purchased when the Fed was formed.
- Much of the deterioration has occurred since 1971 when gold was removed from any connection to currency.
There is much more in this half-hour video which explains how we got to the position we are in and why there is no solution possible via the Federal Reserve.