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In simple terms, the Federal Reserve is always printing more money which they lend to banks at low interest rates. The banks can turn around and loan it to consumers and businesses anywhere in the world. When they loan money it creates jobs in the banking industry and profits.
The profits can pay dividends to the bank's stock holders and can increase the value of their stock.
The employee salaries, the bank's profits, the dividends and the trading of stocks all helps to generate tax revenue for the government which helps to pay for the wars for instance.
The majority of the wages and profits stay with the individual in the private sector for them to decide where and how to spend it.
If folks decide to save it then it can be put it into a bank account or it gets invested which all in turn can create even more jobs and investment.
So the question is, what's wrong with the government printing more money for the purpose of loaning it out?
The government and private individuals profit by it.
So what's the problem with it?
During the last debate, Gov. Romney said that the gov't. doesn't create jobs.
Yet it would appear that when the government prints more money it can create jobs by making more capital available to banks.
Businesses and consumers complain when they don't have access to credit to buy homes, cars, machinery, equipment or to make other improvements in their life.
When credit dries up, folks complain.
Yet when the gov't. prints money to make more credit available they complain about that too.
If the government can't help banks to make more profits by lending them surplus Federal Reserve money at low interest, then how is the country suppose to pay for these wars that are winding down?
No one wants higher taxes.
Yet if the gov't. can create revenue by encouraging bank and investment profits through Federal Reserve policies, then what's wrong with that as a way to help pay for the wars?
The stock market is up and profits are taxable.
Please explain what's wrong with printing more money and increasing gov't. revenues in the process.
It helps the revenue streams of both the Feds and the states, which can also be transferred to the local gov'ts. where needed.
Would folks be as upset if printing more money also causes the stock market to go up?
Think of money as a printed check against how much the USA has in gold.. As we print more money against the same supply of gold the value of that money is devalued. Simply printing money without the assets to cover it is the same as floating bad checks.
First of all, we are printing currency out of necessity, we are no longer simply using that as a financial instrument to manipulate intrerest rates.
We are printing money because of massive deficits we are running, deficits which have forced us to borrow 16 trillion dollars, and this printed money is not paying back these loans (treasury bond purchases from foreign markets), it is simply paying the interest on the loans.
To further complicate our fiscally ****ed situation, each printed dollar is borrowed from the same countries which already hold our outstanding debt.
Basically what you are watching is a FIAT currency in mid-collapse, a currency hanging on such a thin string that it relies on an ever-increasing base of foreign investment just to remain viable. (sound familiar? cough**cough, Bernie Maddoff)
Our currency is a joke. It has no tangeable value, and it is backed by nothing more than fear and faith. One day you, I and every other sorry ass American is going to wake up and find out that the purchasing power of each and every hard-earned dollar we made is flattened. That is the end game right there.
No ponzi based currency in history, currency which is backed by nothing but the faith of its economy, has survived. There are no exceptions, and it's not if, but when.
Think of money as a printed check against how much the USA has in gold.. As we print more money against the same supply of gold the value of that money is devalued. Simply printing money without the assets to cover it is the same as floating bad checks.
The US probably owns much less gold than we think. Yes, it may lay in our vaults, but it's already been purchased by other countries.
That is one of the ways the dollar has remianed viable, the intentional devaluation of gold and other precious medals by wholeselling them by western markets to developing nations.
The US probably owns much less gold than we think. Yes, it may lay in our vaults, but it's already been purchased by other countries.
That is one of the ways the dollar has remianed viable, the intentional devaluation of gold and other precious medals by wholeselling them in western markets.
What a joke we are.
Ahhh just wait for the bill to come due. Fortunately I have been buying gold for a while but mostly in Thailand where I will retire. Silver also.
Unfortunately, I'm still quite young and unestablished, so while I have some silver, I don't have a cache of (real money) : (
Just hoping the dollar holds out long enough!
My friend it is never too soon, and never to little. It all adds up in the end.
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