Interesting notion that CBs would take 60% of it. To wit, the Fed writes a check for all of their investment, of course for which there is no money backing it, the US government then endorses that bogus check based on nothing, deposits it back with the Fed, which counts the Fed now counts as an asset (backed by US govt right to tax you for ALL of it in theory) and then the govt can write its own checks on its account with the Fed, those checks being paid for whatever the govt wants to spend it on, like congressional salaries for example, and when those scalawags deposit their checks to their own commercial banks, those banks count those deposits as assets and then loan out 90% (keeping 10% as required) of nothing and charge interest on that nothing, making something out of nothing and the only thing poorer is you for the decreased value of the dollars you had in your wallet or account before the sale of the debt ever occurred...this is the cause of inflation.
Confused? Really? Welcome to the world of central banking and fractional reserve banking. Andy Jackson took on the Second Bank of the United States and is for that reason forever a hero for those interested in sound money. Does anyone here ever wonder why our taxes have not gone up for the billions spent in Iraq, or bailout of Longterm Capital Mgmt, of the Mexican Peso Crisis...or any of a number of fiscal disasters? Simple...the money was just paid on a computer screen out of nothing and was never intended to be paid back. We no longer have M3 published. To do so would be a measure of the money supply and we will never see the day the national debt will be paid down. The politicians, all Demopublicans and Republocrats do not want us to know this, any of this. This is all one mere facet of the vast array of dollar deceit that, for example, sent Senator Warren Rudmann retiring home, with a magnificent golden parachute we should not forget. Folks the US is in trouble...the emperor has no clothes.
jim black |
