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The Mystery of Central Banking
by Robert P. Murphy @ Mises.org
See: http://www.mises.org/fullstory.asp?control=1566

EDITOR'S COMMENTS
by Ole Bear
Redefining the Fed as the Federal Housing System

Mr. Murphy's essay is rather tongue in cheek and is excellently written in our view. Anyone can understand the redefinition of the Federal Reserve central bank as the Federal Housing System. The explanation of how the money works out of thin air is absolutely priceless. It used to be that a builder had to get a preconstruction appraisal to build a spec home. Nowdays, the banks give the builders a big line of credit to go throw at the market. The build it and it will sell mentality is part of money give away process. It all works well as long as the deck chairs keep getting re-arranged and the music doesn't stop. The banking cartel now even runs the real estate valuation industry. Never underestimate the power of the Dark Side of the Force to melt one iceberg after another. Besides, we all know that real estate values will always increase... in perpetuity (but, I suspect all that melting ice will probably have to go somewhere.... eventually, won't it?)

This particular "Berg" had black and red paint on it.... from RMS Titanic.

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