Economics Made Economical

WARNING: Fed’s Printing Money Is A Crock

No matter how indebted the U.S. government becomes to Social Security, Medicare, foreign aid, pensioners, China, and the Federal Reserve itself, the Federal Reserve chairman, and most American politicians, keep insisting that that debt is somehow irrelevant because “we can always print more money”.

What is conveniently not mentioned is the just-kinda-somewhat-a-little-bit-important fact that printing more money (that is to say, increasing the money supply) decreases the real value and purchasing power of all money. Essentially, indiscriminately and arbitrarily pumping new dollar bills into a deadened economy will lead to rapid unchecked and irreversible inflation. The rapider the speed and the greater the amount of printing new money, the closer the economy edges to a hyperinflation, in which the national currency becomes so worthless that it must be spent immediately so that its entire value isn’t lost by the start of the next business day. In essence, your government bonds, pensions, retirement funds, and Medicare will be the literal number amount promised, but the actual value of that dollar number will not have increased with the hyperinflation. The government pulls the wool over its citizens’ eyes, and We The People are all even poorer in the end.

We’ve seen this scenario play out in recent years in former economic powerhouses like Argentina, Zimbabwe, and Albania, and the results are not pretty. Those countries were all able to get the hyperinflation under control eventually only due to other nations’ economic aid. In a similar situation, there is no nation on Earth wealthy enough to bail the U.S. out of a $16,000,000,000,000.00 (and rising) hole.

This should scare the crap out of every American, and, basically, everyone on the planet. If the U.S. sinks fast, the global economy is likely doomed as well. May God help us all.


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