Immediately the entire world is within the grips of a devastating financial disaster which has resulted in an effectively destructive economic downturn. I certainly discovered so much reading this article and shall be sharing it with HP followers and on Fb. I am saddened daily as we pump up inflation and the Federal Reserve prints new cash day by day to support mistakes others have made. Because the banks started to get in trouble and the economic system was getting dangerous individuals started to get scared.
After the debt was gone we had been able to build financial savings and focus more on our household, our friends and continued to help make life better for the people round us. Actually, as a result of cash is fungible, when the Fed buys securities from the banks, that frees the money the Treasury got from the banks of any debt to the banks within the securities sold to the banks.
It may be very complicated to be told one’s nation’s financial system is about to tank and then a short time later advised that it was all a ruse to put more money within the pockets of the wealthy, and of course in the pockets of their favorite congress folks too – the congress members who made it potential for the rich to grow to be wealthier.
Paul Krugman is fond of saying we owe all that cash included within the U.S. Nationwide Debt to ourselves. Till 1913, when the Federal Reserve Act was passed, the European system of debt peonage competed with what was called “the American system” – debt-free government-issued dollars generated by provincial governments to pay their expenses.
A system of “debt peonage” is inextricably linked to a banking system wherein cash is issued privately by bankers and lent to the federal government slightly than being issued as “dollars” by the federal government itself At this time the “European plan” has advanced into the private central banking system, and it has come to dominate the economies of the world.