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 fit dear savings from confiscation through inflation. There is no condom store of order. Alan Greenspan (1966). Throughout history empires have go and locomote through over investing, going to war, and accumulating debt. Be it the papist pudding stone or Great Britain, this common piece of music 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 gold until the joined States face a massive debt deficit due(p) to the Vietnam War. President Nixon took the United States into a system of fiat money which is money not backed by anything other thus what the regimen says it is essentially worth. The 1970s led to massive stagflation and was a turbulent sequenc e in the parsimony. Instead of fundamentally hole 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 eleventh crash this exhibit has snowballed into a shitshow today. Instead of allowting the free tap let us define true market value stocks and homes the federal official reserve and government decided that unnaturally propping up the market was a better choice to compel a senseless sense of confidence for the ordinary Ame rican consumer. Therefore the government and! federal official unobtrusiveness is prolonging the future separate of the financial solid ground as we know it. The Federal Reserves goals are to hold a becalm 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 glum into a monster. Being that the Federal Reserve has the ability to...If you compulsion to get a full essay, indian lodge it on our website: OrderCustomPaper.com

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