Originally Posted by
David Merrill
It is interesting how this has been on my mind the last day or so. The Fed is supposed to be regulating the value of money so that there is enough in circulation so that we can conduct honest business easily. It does so primarily through Prime Rate/Reserve Percent regulation. The Fed eases or stifles banks borrowing, or stipulates how much cash on hand the bank must have percent to outstanding loans, then guarantees the remainder with FDIC insurance. As the dollar gets to pennies in value though, we find that the Fed has been favoring profits to the bankers in the business plan. In other words, a man should be paying about $25 for a good-fitting business suit that is going for more than $600 today...