Quite an informative and revealing video.
The problem, as I see it, with the USA not having its currency backed by a precious commodity, such as Gold, is that it can just "Print Money" based on what ??
Is this how the USA creates money "out of thin air" ?? ------->
1) The FEDERAL RESERVE buys Treasury Bonds
2) The FED then "deposits" this "new" money into the Reserves of the Banks
3) These "Treasury Bonds" are Government "Debt Instruments" issued by the US Department of the TREASURY
4) And where did the Department of the Treasury get these Treasury Bonds from ?? ............. OUT OF THIN AIR ??
5) Well, these "T-Bills" are money that has been borrowed from 3rd Parties for which the USA must pay interest to those 3rd Parties, further increasing the USA's Debt burden, as per ------>
en.wikipedia.org
I believe Powell made reference to the above process at 14:12 in that video ......
It's no surprise, therefore, that the USA sits with a current DEBT in excess of $30 TRILLION.
One has to wonder what the outcome will be if more and more countries, who are showing an interest in joining the BRICS+ group, will collectively decide to no longer regard the US Dollar as the world's "Reserve Currency" ?? |
