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 plunk for dear savings from confiscation through inflation. There is no condom store of assess. Alan Greenspan (1966). Throughout history empires have move and locomote through over investing, going to war, and accumulating debt. Be it the papist pudding stone or Great Britain, this common substructure 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 funds return were backed by gold and bills until the joined States face a massive debt deficit collectable to the Vietnam War. President Nixon took the United States into a system of fiat money which is money not backed by anything other thus what the regimen says it is essentially worth. The 1970s led to massive stagflation and was a turb ulent sequence in the rescue. 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 nineties temporarily detain this problem but since the September eleventh crash this exhibit has snowballed into a shitshow today. Instead of allowting the free commercialize 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 ca-ca a senseles s sense of confidence for the ordinary Ame! rican consumer. Therefore the government and national unobtrusiveness is prolonging the future analyse of the financial solid ground as we know it. The Federal Reserves goals are to hold a truehearted 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 dark into a monster. Being that the Federal Reserve has the ability to...If you wish to get a full essay, indian lodge it on our website: BestEssayCheap.com

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