Quote:
Originally Posted by dyna mo
wouldn't that just freeze the amount? how long has the interest-free been going on? since the bailouts i'd wager, that's over 2 years. that graph shows a $150billion difference in one year.
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It's very difficult to explain how it all works. The fact of the matter is that they aren't paying down ANYTHING considering the obvious tell that the fed is buying the bonds they would generally sell to raise the cash for the government with their own freshly printed money. So they are creating more debt to create the debt.
With the creation of the federal Reserve the government agreed to around 6% interest no matter what the Fed is currently charging banks to buy the bond to create the debt.
Some good vids on the subject
Money as Debt
The American Dream