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Old 11-24-2008, 04:01 AM   #3
RubyTuesday
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 224
Default Re: THE AUSTRIANS WERE RIGHT ~ Ron Paul Statement 11/20/08

The Keynesian model is based on fractional reserve banking and that's how our Federal Reserve operates. This means if you deposit $10,000 in your bank then your bank can turn around and lend out 9x that amount as if it had that money. When people are unable to pay, it collapses. Then we have the Fed manipulating interest rates (that's NOT free market) by keeping them low artificially so people will borrow more. Our economy depends on people going into debt. Is that sustainable? At what point are people in so much debt they can't pay? It's nothing more than a giant ponzi scheme. Total fraud.

Chances are the money you "borrowed" to buy your house didn't even exist except on your loan documents. Here's a great video- Money as Debt http://video.google.com/videoplay?do...arch&plindex=0
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