Sunday, February 15, 2009
You hear these terms but what do they mean? Basically, they are two opposite forms of money operations. The Keynesian believes in an expandable and contactable fiat money system not based on anything but the whims of the central bankers. They increase the supply of money then they shrink it down again and this causes prices to fluctuate as a result. The larger the fluctuation in the supply of money the larger the fluctuation in the prices. That's the currency we have now. The Austrian believes all money should be based on gold and silver so it cannot be expanded and contracted at the whims of the central bankers. That's the kind of money America used to have before 1913 when J.P Morgan, Rockefeller and the other international bankers bought the Congress and blackmailed President Wilson into changing to the Keynesian model. We became the greatest country up till 1913. But today...not so much.
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