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Thread: Interesting Question.

  1. #1

    Default Interesting Question.

    It costs the Treasury nothing to finance its debt with the Fed.
    It is a fact that the Fed returns all profits to the Treasury. This is a significant amount of the total interest paid by the Treasury.
    Unsure of how other Central banks operate but I am assuming they operate in a similar fashion with regard to the financing of government debt ie money printing

    Many say that this does not create inflation. Of course this assertion is ludicrous.

    If it did not, why would governments collect any taxes, or borrow from foreign governments or private sources. They could just spend whatever they wanted and have the
    Fed finance it, and no matter what the rate on the debt was it would cost virtually nothing as it would almost all be returned as profit.

    So, it is obvious governments know that monetizing their debt causes inflation. If not then utopia is here.

    So the real question is how government and big business decision makers are going to continue to sell the sheep on how paying more is good for them when it is not necessary.
    Inflation is simply stacking the game to favour those that have already, even more than is the case without inflation. The more you have the better it is.

    At what point in the inflation cycle will the decision makers get scared that the fleecing has gone too far, and they start to worry about an animal farm scenario.

  2. #2


    It is what they try to tell us we voted for.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

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