Ignoring all your other rambling, since when does the Fed print money? (quote)
Ignoring all my other rambling?
Of course, as the only point I was flippant with was the throwaway remark about your debt exceeding that of the rest of the world - I believe someone mentioned it was 20% of the world’s debt.
Not bad for a country of 300 million in a 7 billion populated world.
I was thinking at the time about the fact that your ‘defence’ budget was greater than the next dozen or so biggest arms spending countries combined.
Yet your record as regard successful military conflicts since WW2 is appalling.
So, the question posed -‘since when do the Fed print money?’
What on earth do you imagine happens when your government decides to spend yet another hundred thousand or so billion dollars it doesn’t have?
Print the money themselves?
Of course not - rather the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.
The Federal Reserve then creates billions of dollars out of thin air and exchanges them for the U.S. Treasury bonds.
And at the rate the Fed is taking over your bond market right now means that the Fed will own 45% of all in 2014, 90% by the end of 2017 - and in 2018 there will be NO privately owned US treasury paper!
If the ordinary American really understood how your Federal Reserve worked - they would demand it be scrapped.
President Kennedy was making moves to get rid of it - look what happened to him.
Thomas Edison wrote years ago in the New York Times:
“That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.
Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.
But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.”