Re:Uh, actually he's right (Score 2)

The inflation problems you refer to were caused by using a fractional reserve system. Bankers of the time couldn't resist keeping smaller and smaller reserves of gold to back their banknotes, eventually the public would get wise to this fraud, and a run on the bank would result. The Federal Reserve System is fraud. It was created by bankers for the benefit of large banks. It gives the large central banks (and to a lesser extent, the Federal government) the ability to create money out of thin air. Fact: These "magic" dollars compete with your dollars (the ones you worked some job to earn, presumably) for goods and services in the economy, AKA inflation. Do you see the inherit unfairness of the system now? Oh, and by the way, the banks earn the going rate in interest for doing the hard work of making an entry on their balance sheet. So far the system has been remarkably stable. After all, the value of a dollar in terms of the goods it will purchase has only declined about 90% in the last 30-40 years. But we are always in danger of some economic shock revealing the system for what it is.