Financial System Failure

Andy Richard Professor Herzog Money and Banking December 7, 2011 He Who Holds the Gold Makes the Rules In the absence of the gold standard, there is no way to bandage dear savings from confiscation through inflation. There is no condom store of harbor. Alan Greenspan (1966). Throughout history empires have arise and locomote through over investing, going to war, and accumulating debt. Be it the roman letters pudding stone or Great Britain, this common discipline is similar to the join States and its recent practices the past few decades. Up until 1971 America was on the gold standard. Being that dollar bills in the bills return were backed by gold and bullion until the joined States face a massive debt deficit overdue to the Vietnam War. President Nixon took the United States into a system of fiat money which is money not backed by anything other past what the regimen says it is essentially worth. The 1970s led to massive stagflation and was a tu rbulent sequence in the saving. Instead of fundamentally furbish up these problems the United States act to increase their deficits and inherently ruin their economy via artificial relaxed work policies and tax code.

The tech boom of the mid-nineties temporarily detain this problem but since the September eleventh crash this exhibit has snowballed into a shitshow today. Instead of allowting the free commercialise let us define true market value stocks and homes the federal official reserve and government decided that by artificial means propping up the market was a better choice to progress to a senseless sense of co nfidence for the ordinary American consume! r. Therefore the government and federal unobtrusiveness is prolonging the future decompose of the financial solid ground as we know it. The Federal Reserves goals are to hold a blotto inflation rate, low unemployment and to conjure up the economy. Created in 1913 in response to the lack of liquidity caused by previous depressions it has false into a monster. Being that the Federal Reserve has the ability to...If you essential to get a full essay, indian lodge it on our website: BestEssayCheap.com

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