Here’s an interesting take on the economy:
“A vast number of people think that what we’ve been through during the last four years is just another episode in the economic crises history of the United States. They believe a president has the power to continue the trend or reverse it. So they put their faith in the next presidential elections. They think their favorite candidate, whether Romney or Obama, will bring about the change they wish for. So they go and vote. Then, if their candidate wins they expect miracles from their leader until yet another economic event hits them and the dream fades away. And so it goes every four years while the giant Titanic is sinking.
The reality of it all is that it matters little whether Obama or Romney becomes the president. Why? Because – contrary to what we’ve been told – since 1913 the president or congress has had no control of our monetary policy. The central bank has such powers.
During the last four years President Obama has followed the policy of the Federal Reserve. His major campaign contributors during 2008 elections are listed here. If he wins, he will continue the same policy. If Mr. Romney wins he will take over the torch because the money that funded his presidential campaign accepts no opposition.
I bring this up not to be political but to demonstrate to my readers that our next president won’t have the ability to fix the economic crises. Therefore we should not rely on the government to make our lives and/or our children’s lives better. It is up to us to learn, assess, and prepare for the future by making educated decisions, while we still have the ability to do so. Let me explain.
Sound monetary policy is vital to the economic recovery. That is because it is the bad monetary policy that caused the problem, not once, not twice, but throughout history according to the Austrian School of Economics. Asset bubbles form due to artificial expansion/inflation of money supply. This is the key, this is the underlying cause. When newly created (by the Fed) money – out of thin air – finds its way in the economy it flows into assets such as real estate, commodities, or securities. The result is artificially inflated assets. This is not sustainable. If it was we would be trading houses today in the millions of dollars. It is not sustainable because in such a scenario the market forces would lead to a currency collapse. If the bad monetary policy continues we will eventually end up with a dollar not worth a continental.”