Here are some interesting links:
http://www.tarpley.net/29crash.htm
In regards to Ron Paul running for president, it really is irrelevant what the intention of the Federal Reserve is at this point.
What is relevant is that Ron Paul would require accountability from them(their meetings be recorded and made public) and would allow for free market competition. What's so bad about that? What is wrong with me choosing to use a dollar bill backed by something instead of a federal reserve note? If your friend wants to keep his beloved federal reserve, he has that choice still under a Paul administration. But if I want to use honest money, shouldn't I have that choice as well?
People speculate and wonder why corporations on Wall Street do so well against small businesses. The reason is because those corporations are either contracting(with the government) or borrowing on buying power that has been stolen from everyone else with this fiat money system.
I'll break it down simpler:
You have 10 dollars and there is 100 dollars in the whole economy. Economic free market forces will set the prices so that the whole amount of money in the economy reflects the whole amount goods in the economy. So if a gallon of gas reflects 1/100th of the total goods in the economy, then that gallon of gas will cost 1$(if you need proof I can show it to you).
Then the government borrows 100$ for a project from the federal reserve which then gets printed out and injected into the economy. Now there are 200$ in the whole economy making your dollar buy only half as much once that extra 100$ gets spent by the government(if you need proof for how this inflation will occur, ask and I'll show you).
This then makes it seem that the economy is going great since money is getting spent and if you're the one it is being spent on, you get an increased amount of sales. However, due to the new demand for that good/service prices climb up since there is only a limited amount of goods/services. The market then adjusts it's prices. However, as the prices reach what they should be at, sales decline and then people think we are heading in a recession, so they save their money. This means less money being used in the economy. Then the government intervenes again and takes people's buying power to "stimulate the economy". Then we have a boom again.
But during that whole event of things, the central bank who loaned this money expects the money to be paid back. It then requires payment and interest. And every time we make payment we decrease the amount of dollars in the economy. What does that do? This then requires a market adjustment of decreasing the prices, or deflation, to compensate for the decreased amount of dollars in the economy. This then causes a lot of inactivity during that time.
It's kind of like abusing drugs. You have a great time until the hang over in the morning. However, you have to take more and more each time until it eventually can kill you. We are essentially killing the currency which will then require a great many market adjustments to fix and get heading in the right direction.
But the federal reserve problem is the issue. How can we ever get out if the amount owed is greater then M3?
