Personal Development for Smart People Forums - View Single Post - The "Federal Reserve"

Colin · 01-08-2007, 08:44 PM

There was a similar discussion about the Fed a while back in this thread.

I find it a fascinating subject, but try not to get too hot and bothered about the Fed and 16th amendment issues since I'm not even America (although I do live in the US). Once you do know about these issues it's easy to see why politicians have no problems spending money today that has no chance of being paid off until decades into the future.

The Fed was just created to capitalize on the money to be made via a fractional-reserve banking system (even more so when the US dollar became a pure fiat currency). Since these base criteria apply to many currencies worldwide (including the euro, Japanese Yuan, Chinese remnibi, etc.) it really is a global issue.

Since all fractional-reserve currencies blow up eventually (even the gold backed ones such as during the Roman Empire), your best bet is to diversify your assets and holdings. And buy some gold. If you don't want a gold ingot under your bed just buy some gold via the e-currencies such as e-gold, e-bullion or pecunix.

01-08-2007, 08:44 PM	#9 (permalink)
Colin Junior Member Join Date: Nov 2006 Posts: 27	There was a similar discussion about the Fed a while back in this thread. I find it a fascinating subject, but try not to get too hot and bothered about the Fed and 16th amendment issues since I'm not even America (although I do live in the US). Once you do know about these issues it's easy to see why politicians have no problems spending money today that has no chance of being paid off until decades into the future. The Fed was just created to capitalize on the money to be made via a fractional-reserve banking system (even more so when the US dollar became a pure fiat currency). Since these base criteria apply to many currencies worldwide (including the euro, Japanese Yuan, Chinese remnibi, etc.) it really is a global issue. Since all fractional-reserve currencies blow up eventually (even the gold backed ones such as during the Roman Empire), your best bet is to diversify your assets and holdings. And buy some gold. If you don't want a gold ingot under your bed just buy some gold via the e-currencies such as e-gold, e-bullion or pecunix.