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75 Years of Funny Money- Canada's Central Bank is just as bad as the FED
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2010 Mar 16, 4:24pm 1,122 views 1 comment
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I have to laugh at the newspeak of The Fed in reference to their FOMC, Federal Open Market Committee. Haha - its a committee that rejects the notion of an open market. It's a committee that manipulates the market with negative consequences. It fixes the interest rates, in other words 'price fixing'.
Incorrect interest rates give a false, fraudulent, incorrect picture of the market. Others make decisions based on incorrect information and as a result get hurt financially. A clear example is the housing market. Prices went sky high on homes...but value didn't. A home that had a "value" of $200,000 in 1998 might have shot up in price to $400,000, $500,000, maybe even $600,000. But the value, the utility, might actually be less than $200,000 because some of its "life-span" has been used up. This is just one of the evils of a central bank - regardless of which country it operates in.
http://www.financialpost.com/news-sectors/economy/story.html?id=2668127
"There are big stakes involved. Inflation is a way for governments to spend more without having to directly impose taxes. A central bank is an essential part of big government.
Central banking operations also serve as a permanent bailout for debtors. Interest rates are usually kept lower than they would be in a free financial market. And by reducing the value of the money being owed, they make life easier for debtors. So the modern era of central banking is one where debt, public and private, inexorably grows, to the point where the whole monetary edifice now threatens to collapse."
Read more: http://www.financialpost.com/news-sectors/economy/story.html?id=2668127#ixzz0iPszcEzU
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