Quote:
Originally Posted by NTM
Where does U.S. gorvernment store all its gold to back the paper currency?
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what i love is the fact that the bank responsible for printing all the money (Federal Reserve Bank) in the US is actually a privately owned bank (mostly by Europeans), and they get paid back by taxpayers (eventually). It's a beautiful system.
Fair play to them thats what i say. No one seems to complain.
Here's how the system works:
1>The US Gov says "We need more money printed to keep our economy afloat"
2>The F.R.B. prints more money
3>Taxpayers then owe that money back to the F.R.B.
Repeat until the economy goes bust or the dollar is worth as much as an Italian lira.
Every time this happens it simply adds more debt to the debt ridden economy, but who cares because you have an immediate cash flow surplus.
currently US borrow 1.9 billion dollars a day to pay interest on it's debts.
Until recently China was the biggest lender to the US, but they have decided to stop lending money.
What does this lead to? Printing more money, and more debt incurred to foreign lenders. Rising interest rates, and foreclosures on many properties, and great opportunities for the wealthy to add considerable real estate portfolio assets for pennies on the dollar.
Sounds good to me.
