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Consumers have been out of funds for a good part of the year, yet prices in real estate, stocks and other commodities have been going up. Who needs consumers to spend it into existence? The Fed and its cronies are the ones sucking up the largess from the money creation, which is racing ahead at a significant amount.
Paper, paper everywhere, and none of it worth a dime.
The Fed is now forced to play follow the leader.
The FED and federal government, like the drunken comedian, says in a gleeful voice, “Nobody is stopping me.” That’s why we need gold as our money. We need something that can’t be conjured out of thin air. It must stop the powerful automatically from inflating.
Obvious to all that the Fed abandoned its mandate of stable prices?
I’ll bet you couldn’t find 1 in 500 adult citizens who knew that was its mandate, to begin with.
The fed is clandestinely taking over corporate America.
If the FED can’t maintain its Mandate with the Nation, it is a broken Contract with the People. The FED is out of order and has to be fired.
The US Treasury, which is incompetent, needs to be restructured with Competent People. MMT sent out to all Legal citizens ( not a business and Wall St) to do a reset on the Nations’s currency.
The USA needs to do a phaseout of the current cash US Dollars and Make New Bills for our cash to spend.
The Globalist FED is screwing our system up.
Central banking is a flawed, corrupt system of fake money printing, grifting, and backroom deals.
The people will always suffer, and many will die from their malice.
A US Treasury Bill/Note/Bond with a coupon of 0% is effectively CASH.
Cash that is worth 0.
Treasury creates a TBILL for $100 (or $100B or $100T).
Fed puts the TBILL on its balance sheet as an asset.
Fed creates a note for $100 on its liability column.
At 2% for ten years, the interest on that bill is $32. The $32 doesn’t exist. When Treasury pays this interest, there are correspondingly fewer dollars existent in the world with which to pay the principal ($100).
There isn’t enough money in the world to balance the budget. They MUST borrow a new sum that can retire the first $100 Treasury, plus the $32 in interest.
So, when does this end?
Generally, it ends when the average person realizes that debts denominated in such inflationary currency MUST trend to ZERO in real terms over time, and decides to convert to real stuff sooner, before the inevitable debt contagion.
Suppose the operation of Central Banks was common knowledge, that “when” would be the day after the first Federal Reserve note was written. Failure is INEVITABLE with THAT screwball currency design.
But HOW does it end?
The Fed is a public board for a collection of PRIVATE banks.
What usually happens when a debtor cannot repay a loan? Probably, that is why they made the system to be a financial ticking time-bomb in the first place.
So the fed ends up owning all the debt, paying newly created money to take it all on to its balance sheet. Then it forgives all interest of debts it owns, public and private. Then it forgives the debt. So what?
The main problem is it creating moral hazard and extending the lives of companies that should be creatively destroyed. Lack of innovation is rewarded.
The taxpayer gets all the debt, just like in 2008.
The debtors get stuff for free. Savers get robbed. That is a lot of downsides if you want to retire someday.
The robbing is the loss of buying power if one’s investments, wages, and other income don’t keep up with inflation. The banks that made the commercial loans no longer own impaired debt, so don’t otherwise need a taxpayer bailout. Those companies are freed from debt without resort to judicial bankruptcy.
The FED just doesn’t do it right. The right way is to nationalize the banks, drive the banks out of the savings business, and raise reservable liabilities and reserve ratios against all deposits….
We have NOW reached the tipping point.
Wake me up when I need a wheelbarrow to buy bread.
The curtain will come down very suddenly on this sh.tshow and catch the vast majority wrong-footed.
Prepare yourselves accordingly while you still can.
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