Chapter ten question 6

Question six: As a whole I found chapter ten very confusing.  Although I was confused I was still very interested in the subject matter. One part that I found interesting was on page 231, "Therein lies the link between the Federal Reserve, or any central bank, and economic devastation. A paper currency has value only because it is scarce. The central bank controls that scarcity. Therefore a corrupt or incompetent central bank can erode, or even completely destroy, the value of our money". This concept was mentioned a few times throughout chapter ten, and we have also talked about it in class. I find it very interesting how the value of money is always changing(due to inflation and other factors). Our currency used to be backed up by gold or sliver, now it's holds value simply because it is universally believed to. I think it is fascinating how money changes in value, and how time and productiveness can have such an impact on the costs of goods.