Ideas. Illumination. Revolution.

Modern day economists fail to realize the ramifications of a centralized banking institution when it comes to sound money and the facilitation of monetary policy thereof.  The Keynesian economic school of thought undermines long-term stability via short-term government interventionist policies that boosts growth and production in the short-term but diminishes it in the long-term.  This occurs because it inflates the money supply, by printing money, and subsequently renders the dollar less valuable daily.  In its essence, inflation can be considered as a hidden tax on the consumer. In the video below the Ludwig Von Mises Institute elaborates on why a centralized banking system and statism undermines a sound economy.  They argue that a fractional reserve lending system causes long-term instability.  This occurs because the Federal Reserve, as the lender of “last resort”, is able to print money backed only by ten percent of their gold reserves therefore allowing them to increase the money supply ten times its original amount.  This process devalues each individual monetary unit (dollar) tremendously and in the process undermines sound money and a sound economy.  They also argue that a 100% gold standard would curb a relentlessly unwarranted increase in government expenditures provided by inflationary funds and the fractional reserve lending system.  It is imperative that the common citizen is informed of such poor monetary policy and its effects in order to bring an end to the unsound economy fueled by a fiat currensy (paper money made legal tender by a government decree).  Enjoy the video, spread the word of freedom and most importantly END THE FED!