Tag Archives: fiat currency

Fiat Empire: Why Bailouts Will Not Save America

There’s clearly an awful lot wrong with the financial system of today.  The talking heads and bureaucrats will tell you that they need more money powers to sort the situation out.  They say that they must create trillions of dollars and have the ability to take over large companies; all of this is to bail out the financial institutions.

When you are thinking about this situation, you have to realize that the original purpose of the Federal Reserve banking system was to give the large Wall Street bankers the peace of mind of knowing that they would always be bailed out, so they would never lose any of their own money.  With a system of this sort in place, financial institutions take risks that they would not have otherwise taken.

Lately, the investment banks such as Lehman and Merrill Lynch have gotten into the habit of “investing” 30 dollars for every dollar in capitol that they have.  It doesn’t take a genius to realize that this is incredibly irresponsible. Continue reading Fiat Empire: Why Bailouts Will Not Save America