To: russwinter who wrote (67811 ) 8/9/2006 4:38:46 PM From: jim black Read Replies (3) | Respond to 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.
