ronin - 9:38 pm on Nov 13, 2006 (gmt 0)

I'm curious that no-one seems to be all that bothered that:

a) Not only are we all exchanging pieces of paper of imaginary worth but that...

b) To my mind much more seriously, new loans that are granted are not even backed up by those worthless bits of paper.

It's the latter point that I'm more worried about, not so much the departure from the gold standard.

Are we all to shrug our shoulders and say Hey ho, that's the way the world is?

What did everyone think of Griffin's proposal that inflation is deliberately and steadily manufactured? Is that also something we should just sit back and shrug our shoulders about?

I must confess I'm not much of an economist so I did think that inflation was the inevitable cause of real and concrete factors, not that it could be produced at will by a cartel of financiers who do so for the benefit of themselves at the expense of the majority.

I still don't wish to believe the above scenario because it does indeed sound rather too "black helicopters" to me... so I would be really happy if someone who knows about economics could point out the fallacies in Griffin's portrayal of how the Federal Reserve works.