Financial System Failure

Andy Richard
Professor Herzog
Money and Banking
December 7, 2011
He Who Holds the Gold Makes the Rules
In the absence of the gold standard, there is no way to hold dear savings from confiscation
through inflation. There is no condom store of value. Alan Greenspan (1966). Throughout history
empires have risen and locomote through over investing, going to war, and accumulating debt. Be it
the Roman pudding stone or Great Britain, this common theme is similar to the join States and its
recent practices the past few decades. Up until 1971 America was on the gold standard. Being
that dollar bills in the money return were backed by gold and silver until the joined States face
a massive debt deficit due to the Vietnam War. President Nixon took the United States into a
system of fiat money which is money not backed by anything other then what the regimen
says it is essentially worth. The 1970s led to massive stagflation and was a turbulent sequence in the
economy. Instead of fundamentally fixing these problems the United States act to increase
their deficits and inherently ruin their economy via artificial relaxed work policies and tax
code.



The tech boom of the nineties temporarily detain this problem but since the September
11th crash this exhibit has snowballed into a shitshow today. Instead of allowting the free commercialize
let us define true market value stocks and homes the federal official reserve and government decided
that artificially propping up the market was a better choice to create a senseless sense of confidence
for the ordinary American consumer. Therefore the government and Federal unobtrusiveness is
prolonging the future collapse of the financial solid ground as we know it.
The Federal Reserves goals are to hold a steady inflation rate, low unemployment and to
conjure up the economy. Created in 1913 in response to the lack of liquidity caused by previous
depressions it has turned into a monster. Being that the Federal Reserve has the ability to...If you want to get a full essay, indian lodge it on our website: Orderessay



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