debt limit will be reached in february

[dababus]

Originally posted by: User1001

Originally posted by: dababus
In simple English, the government swaps these bonds for bank notes which are our common currency.

Government sells these bonds to Federal Reserve (privately owned), the central banks of foreign nations (China, Japan, Germany etc) and the public.

In reality, the government DOESN'T NEED to borrow money by offering bonds, it itself can create money (just like the banks) and circulate in the economy.

1) The Federal Reserve is not a private bank
2) The government cound just create the money, but that would just cause massive inflation

1) Statement one is not true.

2) Statment two is only partially true.

Q 1) prove that Federal reserve is not a private bank.

Q 2) prove that current monetary system where banks create money is not inflationary.

Q 3) Define inflation, inflation as in a monetary system where money is created by the bank and money is created by the government.

 

[bob4432]

just invest in precious metals and not worry about it... silver, gold, palladium, platinum, rhodium...because the actuall dollar has no real value and keeps dropping as the debt is so high

 

[dababus]

Originally posted by: bob4432
just invest in precious metals and not worry about it... silver, gold, palladium, platinum, rhodium...because the actuall dollar has no real value and keeps dropping as the debt is so high

All paper currency is reduced to its intrinsic value, which is zero.

We really need a broad based solution to our current monetary and banking problem. Although people would advise to invest in precious metals, but that will not solve our national monetary problem.

 

[bob4432]

Originally posted by: dababus

Originally posted by: bob4432
just invest in precious metals and not worry about it... silver, gold, palladium, platinum, rhodium...because the actuall dollar has no real value and keeps dropping as the debt is so high

All paper currency is reduced to its intrinsic value, which is zero.

We really need a broad based solution to our current monetary and banking problem. Although people would advise to invest in precious metals, but that will not solve our national monetary problem.

i guess in a perfect world, if every dollar was backed up by some type of precious metal all would be good, but that is not the case and unfortunately i am not trying to solve the national problem, just my own. i would much rather have an ounce of siver than ~8.50 in currency any day.