I won't dispute that America is in the Middle East to keep cheap oil flowing.
But, credit is inflationary if more money is created than exists in the system.
Again, look at the Fed BASE I linked you. That's all there is to it man. Although money must return to the Fed, what actually happens
in practice is that the Fed creates
even more money than previously existed to make sure there is enough money to pay back the old debts.
As long as the Fed exists, backstopping all debt, two things will never happen:
1. The National Debt will never go down
2. The value of the dollar will continue to drop
For point 1; since all money in our system is created as DEBT, how could this old debt be payed back unless more money is created to pay it back? And since the new money issued to pay back old debts is itself debt based, that means there will always be a growing amount of debt!
Pretend Country X has 5 Trillion of Debt in a 5 year bond issued at a 1% interest.
year 1; 5 trillion debt 5 yr bond.
year 2; 5.05 trillion debt 5 yr bond
year 3; 5.10 trillion debt 5 yr bond
year 4; 5.15 trillion debt 5 yr bond
year 5, what happens?
at year 5, the 5.20 trillion debt must be refinanced... so it issues 5.20 trillion in debt at 1% interest, which is an additional .104 trillion in interest each year.
Now, under these conditions,
why would the money supply ever go down? In the above scenario, the money supply expanded from 5 trillion to 5.2 trillion in 5 years!
Combine the above with America's fat budget deficits,
and you have a recipe for total catastrophe.
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The role of the Fed is the create and destroy money in times like this, how else would it give credit to all these big banks so that they, and the American economy, don't crumble right in front of our eyes? If the Fed didn't increase money supply then the giant banks (which our economy is tied to) would not have the credit supply to keep the economy from moving.
This is a lie that we are told so rich bankers can get away with ass fucking America.
The best thing that could ever happen to America is for the cheap money to be halted, and for additional money to cease being created. It would drastically improve the economy over the next 10 years.
Contributor at Return of Kings. I got banned from twatter, which is run by little bitches and weaklings. You can
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