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The federal reserve owns half of all US debt. We are paying interest on interest to our own Fed that serves as the banking systems perpetual bailout fund with the ability to create unlimited amounts of money.
It's actually privately owned and not public.
Til, People are more than happy to sell their children for a slightly cheaper mortgage as long as you dress it up correctly.
Who are people selling their children to, and how?
We're not literally selling the kids. But it is the kids that will be paying off these huge debts via higher taxes and less services.
The debts are mainly owed to China, Japan and a few other nations as well as big private lenders (hedge funds and billionaires)
The federal reserve owns half of all US debt. We are paying interest on interest to our own Fed that serves as the banking systems perpetual bailout fund with the ability to create unlimited amounts of money.
Earlier quoted context omitted.
I think this has always been the way we've paid for infrastructure. I remember reading an article about Japan. They've stopped taking on massive infrastructure projects, because the population isn't growing -- they don't want immigrants and people aren't having kids anymore. Without a future tax base to pay for infrastructure, they can't build it anymore. So things like the Tokyo subway system are "done"; no money wi…
Interesting observation, although it should be noted that in the case of infrastructure, the future generations that are obligated to pay for its construction will also be in a position to reap its benefits.
Earlier quoted context omitted.
Who are people selling their children to, and how?
Selling them to whoever is buying the debt. The government gives you money(low taxes)/buys something, and does so by borrowing the money for a long time. Now future generations (their children) are on the hook for the payments, having to pay higher taxes in the future for benefits in the present. This is fine if you are using that money to invest smartly, such as in needed infrastructure. This is not good if you are…
For instance, in the current situation, all the countries are applying stimulus at the same time, so, where is all that money coming from?
Til, People are more than happy to sell their children for a slightly cheaper mortgage as long as you dress it up correctly.
I think this has always been the way we've paid for infrastructure. I remember reading an article about Japan. They've stopped taking on massive infrastructure projects, because the population isn't growing -- they don't want immigrants and people aren't having kids anymore. Without a future tax base to pay for infrastructure, they can't build it anymore. So things like the Tokyo subway system are "done"; no money wi…
But I'd be less worried if these debts were to build infrastructure (and we'd have some incredible infrastructure). That's my real concern here: we borrowing to maintain lifestyles not to build useful things.
Your point about Japan is really interesting. I heard things were moving that way but I didn't know they were so up front in recognising it. I love the Japanese. Here in Europe we're in a similar position but no one quite wants to admit it. And we borrow still, we just give it all to OAPs :(
I believe this topic is among the most important things we need to discuss and is arguably more important than climate change (what else is driving consumerism and throw-away-culture but inflation?), but economists have overcomplicated things and made it inaccessible to the average person when it really is so simple that a five-year old can understand it: printing money enriches the few who have access to the printing press at the expense of the many.
End central banking and the economy will be stronger, more resilient, fairer, and will reward those who create real value rather than the well-connected.
So I'm hearing the " the dollar is over, throw everything into gold, fiat money is doomed" in other forums. Can anyone give some conterpoints to that narrative?
Gold was important at the time where balances were done manually and purchases between countries were settled with physical gold.
(And no, this is not a defense of bitcoin. Bitcoin has to be much more liquid and stable for it to work as a store of value)
The federal reserve owns half of all US debt. We are paying interest on interest to our own Fed that serves as the banking systems perpetual bailout fund with the ability to create unlimited amounts of money.
>our own Fed It's actually privately owned and not public.
So I'm hearing the " the dollar is over, throw everything into gold, fiat money is doomed" in other forums. Can anyone give some conterpoints to that narrative?
Look up Peter Zeihan. He’s bullish on the dollar mostly because it’s the world’s reserve currency and there really isn’t a good alternative. That said... I’ve heard the dollar referred to as the best looking horse in the glue factory.
Enemies that become an unwanted source of distraction are deinstalled by an act of god.