It is very clear that we have these cycles and these booms coming from a monetary system that is pure fiat. Fiat money means the money is created out of thin air and the characteristic of a fiat monetary system is that you have over-speculation, you have stock market booms, you have stock market crashes, and you have a business cycle. This comes from the mismanagement of money. Only a free market can tell us what interest rates should be or what the money supply should be. But we have become dependent on a Federal Reserve system that pretends to know all these things and we have allowed Alan Greenspan to believe that he can regulate the entire economy as well as the stock market by the Open Market Committee.
Inflation is nothing more than the creation of new money out of thin air.
Sometimes it raises prices in certain areas, other times in other places. But the whole principle of fiat money is that when you create new money, you devalue the value you lower the value of the dollar. And this is what is happening. Right now we re increasing the money supply as measured by m.z.m. This means that ultimately that dollar that we use to purchase goods and services will go down in value, and yet the only thing that we hear about is the cry to the Federal Reserve, just print more money, faster, because that will save us all.