"It is the paper money created out of thin air that creates the unfair distribution of wealth that is making the middle class fall more behind and the poor more poor. Newly created money and credit in a paper money system benefits those that can access the money first and buy capital goods and real property at one price before the new money circulates and makes all prices go up. Wages also do not keep up with inflation and that creates another squeeze on the middle class."
Kenneth Gerbino
former chairman of the American Economic Council
The Great Deceit, May 28, 2010
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Reader comments about this quote:
A return to gold-backed currency in the U.S. and Europe would do much to solve our credit ills.
 -- Justin, Elkland     
    Mr. Gerbino makes the same mistake that the Mises people and Ron Paul do, One, that gold should just be a commodity, lest unfair, immoral, usurious appreciation occur for those sitting on their backsides, much as the socialist "somthing for nothings" would have it like Pelosi, Reid, and two, that "Newly created money and credit in a paper money system benefits those that can access the money"; inother words, the OWNERSHIP of fiat money is the real (immoral) "problem" ! I would have both the State and Federal governments fight over the valuation of a GNP based monetary system, with state nullification, etc. to make sure that the basket of goods that the money supply was based on was actually representative of all supply sectors.and that internationally this was true also, as we are able to do being the only super power (yet). But it will never happen in this totally unfair, non-level world we suffer under, spartan militaristic state that we have become. Just make sure your children that cannot become professional at something join the armed forces, or they will suffer as the quote says.
     -- Tom LaMar, Keeseville, ny     
    "Otherwise worthless" fiat money should be printed by whomever, but OWNED by the government and just spent into circulation incurring NO national debt. Fully half our ND is due to the 1913 ruinous Federal Reserve Act as the President admitted after signing it. No private entity should be allowed to claim ownership of printed or "generated" money. The monetary system would be under strict controls of both state and federal governements as the single most important thing a government does aside from providing for the common defense.
     -- Tom LaMar, Keeseville, ny     
    Paper, thin air, money being printed by a private entity responsible to no one is the absolute source of all our economic problems. Gerbino is right when he points out that those same private interests get to use that currency before it has become devalued.
     -- J Carlton, Calgary     
    If not by gold, then by a basket of commodities. Something of real value to back the currency. The saying backed by the full faith and credit of the US government means little when they dollars they back it with are continually devalued.
     -- J. Allen, Arlington, Va.     
    Inflation, the hidden tax, is coming like a freight train thanks to Barry, Nancy, Harry, Barney, and the rest of the gang.
     -- jim k, Austin,Tx     
    Tom LaMar makes a great point at fiscal law. Gold though, as part of the mix, is a finite commodity with intrinsic value, and has a long history of acceptability, stability, and worth, giving the whole monetary system a substantive foundation.
     -- Mike, Norwalk     
    We should eliminate the Federal Reserve. System. It could be done with one sentense.That would require Congress to raise taxes in order to finance their political agenda. Guess what would happen then. The voters would remove them from office.
     -- R McFall, Eureka, Ca.     
    He speaks the perfect truth and unfortunately for many it hurts.
     -- RBESRQ     
     -- Anonymous      
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