Ron Paul about the Phony Reserve

Ron Paul about the Federal resereve Bank (which, by the way, is a private enterprise and just as federal as FEDEX, the parcel delivery service is) :

"If you didn't have an accommodative Federal Reserve, Congress' deficits would cause very high interest rates. Because we run up the deficits, and if we couldn't borrow money and the Fed wasn't there, interest rates would respond by going up until we could find the money we need. The Fed spoils Congress into getting away with deficit spending. But in the long run, it's devastating because that destroys the value of the currency, and that destroys the middle class, destroys investment, creates malinvestment and bubbles."

Inflation will kill your savings!

When Bernanke panicked and lowered interest rates in response to the whining crowd of stock market investors, credit became cheaper: a lot cheaper, in fact, the interest rate in the USA dropped from 4.25% to 3% within a few days. This is a savings of 29,4% to the “grasshoppers” who borrow money freely and a minus of 29,4% to the “ants” who toil all summer long to save for the winter.
People who saved got punished, while those who got in over their heads are being rewarded.
And the punishment will be extended to the very limits of society as inflation will make life more expensive for everyone.
Buy Gold.