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The Federal Reserve Undressed

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:

  1. “The Fed is not an inflation fighter; it is an inflation creator.”
  2. The Fed causes recessions which are the free market’s means of striking back against government interventions and re-balancing the economy.
  3. The Fed has destroyed the value of the dollar.
  4. The dollar is only worth 5 cents versus what it purchased when the Fed was formed.
  5. 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.

http://www.youtube.com/watch?v=Sh2y13oDGmI