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Inflation - Central Banks Control, The Cure!

April 07, 2012 | Comments: 0 | Views: 160

Inflation is created by directly increasing the money supply in an economy. When this happens it creates a watering down effect on the money supply. If you take newly created dollars and add them to the money supply of the country, along with all the other dollars that were already there, you get the total money supply. The larger new money supply will actually be worth less in purchasing power than the total supply of money before, which had fewer dollars in it before the additional money created was added. It costs more in dollar terms for goods and services, not because these things are worth more money but because it takes more dollars to buy them as the dollar's value now is less. In simple terms that is inflation.

How is the money supply increased?

Central Banks -

Central Banks such as the Federal Reserve Bank for the United States are in charge of creating money. The US dollar is the same as all other global currencies in the world today. The dollar and all other fiat currencies are backed by nothing more than the faith and promise of the government who prints it and the faith in its people who use it. Central Banks such as the Federal Reserve can "print money out of thin air." Simply but pressing the "start button" on their printing press.

Central Banks use different tactics in controlling the supply of money. But the one thing to be sure of is that these tactics that are used, are always controlled in the best interest of the banks. Governments and their citizens always play second fiddle when it comes to the banks being in charge. When money is printed the central bank earns interest on each banknote or dollar bill printed.

The Cure -

One cure to keep inflation under control permanently is to force government law makers to do their jobs. First by forcing them to pass new legislation that removes the power from the central bankers on money printing. Thus handing the governments back their own power to create and control the money supply through the US Treasury and alike. Next "Sound Money" once again must be injected into society. Sound money is real money that has been backed by tangible assets such as physical gold or silver.

Additionally further legislation needs to be created and passed that will abolish these private banking cartels. Including entities such as central banks like the US Federal Reserve Bank which is a privately owned bank. Furthermore there is nothing federal about the Federal Reserve except a cleverly placed name.

Taking the control away from the powerful banking elite is paramount. As for decades these private banks have been heavily profiting by controlling governments and funding wars completely outside both the government and general public's view. Worse yet they have never been required to answer any questions from anyone inside or outside government to justify any of their actions.

Tom Genot -

Informational news, books, articles and videos to invest in gold and silver and where the best places are to buy it. Also find informational resources to educate you on alternate forms of investing and preparedness, for protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot provides information and resources helpful to everyone. Insure you're prepared, while time is still on your side. Check us out at

Source: EzineArticles
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