One more time.
Y’all do realize the Fed created 4.2 Trillion dollars from thin air over a 6 year period? Wave of Bernanke’s hand and that money came into existence.
Y’all do realize the European Central Bank is RIGHT THIS MOMENT continuing to create money from nothingness as part of their own Quantitative Ease program? All Central Banks did this. It’s why the dollar didn’t collapse when Bernanke did it.
This is why obsessing over the budget is stupid. The elderly don’t have enough money from Social Security? So what? The Fed can provide it.
Now the obvious extrapolation is “Why have taxes at all? Why not just fund the government by creating money?”
Well, that 4.2 trillion DID fund the government. They bought Treasury bonds. That’s creating money and lending it to the government, and not demanding repayment.
But the more pure answer is . . . you continue to have taxes and you don’t just print up the money needed for Federal spending so that the finance industry continues to have jobs and societal pretense can remain in place.
(And notice not a word about gold. This isn’t about gold at all.)
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