Looks like Congress is on its way to securing a deal to avoid the shutdown...essentially, whats going to happen is, Obama is going to get access to about 1Trillion more dollars...that will be applied to the national debt....the debt he has vowed for..5 years, to reduce....? Anyone want to know whats really happening? 1. The Government Creates Glorified IOUs. Treasury Bonds. These create the National Debt and puts the people on the hook to pay it back. 2. The Treasury sells the Bonds to the Banks. The Banks then turn around and sell the Bonds (National Debt) to the Federal Reserve for a Profit. The Federal Reserve then opens its Checkbook which then buys these Bonds using a Checkbook that has a zero balance. So essentially, the Federal Reserve is buying IOUs WITH IOUs. When those Checks (IOUs from the Federal Reserve) are given to the Banks, currency is created. This is how Money is created.
Posted on: Wed, 16 Oct 2013 20:44:27 +0000
Trending Topics
Recently Viewed Topics
© 2015