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Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts

Saturday, October 9, 2010

Why the Federal Reserve Buys Treasury Bonds

You might as the question: Why does the federal reserve buy treasuries? Isn’t that just taking money from one pocket and putting it in another?



The short answer to the latter is yes. 

Still, economists do present a few

Thursday, February 4, 2010

It Is Now Mathematically Impossible To Pay Off The U.S. National Debt


A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are demanding a solution. What they don't realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt. You see, the truth is that the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the national debt. And if they did that, obviously American society would stop functioning because nobody would have any money to buy or sell anything.
And the U.S. government would still be massively in debt.
So why doesn't the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?
Well, for one very simple reason.