Quote:
Originally Posted by toeser
Actually, the money is not coming from taxpayers. It's being printed up by the Fed. It will just be added to the pile of IOU's that is building up, called our national debt. It will never be paid off and someday we will have a gigantic financial collapse. I am hoping it will be timed for after I'm gone.
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Not quite comprehensive enough in your analysis, LOL. What you say is true but, in addition, the Federal Reserve, which is neither federal (it's private, nor is there anything in reserve), mostly creates fiat currency (backed by nothing of value such as gold or silver) with computer entries. The interest alone on the national debt (479 billion) is staggering, not to mention the "on the book" debt itself (23 trillion) - "off the books" debt is estimated by some to be much greater. There would be no reason for the US Treasury to incur this interest if it coined its own money, as the Constitution establishes as its role, but the scam is for the Fed central bank to print money out of thin air and "lend" it to the Treasury with interest. You and I would be locked up and the key thrown away for far less of an infraction but this has been going on since 1913. The main take away, however, in this case, is that all of that fiat currency (not actually money which has value) in circulation will eventually drive prices up dramatically - the only question is how much inflation we'll have and when it will become completely evident to the consumer -
but it will!
And, for the record (though it may not matter), this is about history and economics
Fred
