The Dismal State of the Gold Standard And Currency Today
It wasn't too long back then when the US had an enviable financial system. Every dollar that was printed out had real value in the sense that an approximate amount of bullion was stored away with the release of that dollar. This became hard to sustain in the long run and the government eventually did away with this policy. With the global economic meltdown in its wake, people are starting to doubt the stability of the US financial system. Skeptics believe that the US financial system is ultimately unsustainable. There is even a possibility that the Congress might audit the Federal Reserve soon.
The Federal Reserve has been under much fire for pumping too much money into the country. Not only does this bring down the value of the American dollar, the whole measure of quantitative easing is unsustainable in the long run. There are some concerned members of the board of the Federal Reserve that have released statements that they did not agree with regard to how the Reserve was generally run these days.
In an effort towards economic stimulation the Fed has basically been printing money in order to buy up toxic assets, and they are hoping that this will cause activity and growth to pick up. In spite of the first few rounds of this effort not providing the desired results additional rounds have been initiated. The taxpayer could end up on the hook, and the economy is still far from thriving. In addition the influx of extra currency has impacted every dollar out there, making it worth even less.
If the general public realizes what is going on there would be widespread panic, and the entire financial system would collapse as the house of cards fell down. Few people outside of economic experts realize what is going on though, and this has allowed the sham to continue in spite of warnings by some that disaster is not far down the road. Inflation is being artificially suppressed and currency is at all time lows right now.
The reputation of the whole nation is at stake here. Various countries have made statements about the abuse of quantitative easing happening on our lands. If all this were to continue, the US dollar would lose all the prestige that it once had. The collapse of the US dollar is a very real threat as never before in US history has the US dollar not been backed up by the bullion. When this finally happens, chaos would inevitably ensue.
The Federal Reserve has been under much fire for pumping too much money into the country. Not only does this bring down the value of the American dollar, the whole measure of quantitative easing is unsustainable in the long run. There are some concerned members of the board of the Federal Reserve that have released statements that they did not agree with regard to how the Reserve was generally run these days.
In an effort towards economic stimulation the Fed has basically been printing money in order to buy up toxic assets, and they are hoping that this will cause activity and growth to pick up. In spite of the first few rounds of this effort not providing the desired results additional rounds have been initiated. The taxpayer could end up on the hook, and the economy is still far from thriving. In addition the influx of extra currency has impacted every dollar out there, making it worth even less.
If the general public realizes what is going on there would be widespread panic, and the entire financial system would collapse as the house of cards fell down. Few people outside of economic experts realize what is going on though, and this has allowed the sham to continue in spite of warnings by some that disaster is not far down the road. Inflation is being artificially suppressed and currency is at all time lows right now.
The reputation of the whole nation is at stake here. Various countries have made statements about the abuse of quantitative easing happening on our lands. If all this were to continue, the US dollar would lose all the prestige that it once had. The collapse of the US dollar is a very real threat as never before in US history has the US dollar not been backed up by the bullion. When this finally happens, chaos would inevitably ensue.
