Lets learn a new word! "Monetize" Few really know what it means and I was one of them. We often hear "the Fed is monetizing our debt," but what does it mean? To monetize is "to give the character of money to" or "to legalize as money." The Fed converts our debt into currency by issuing government securities, Treasury Bills, or prints "notes." The paper we carry around are really IOUs or debt which has been "monetized" to appear to be money, look like money, trade as money, but in reality is not money at all since they have zero intrinsic value and every dollar printed and borrowed into existence has to be paid back with interest, something which is impossible to do unless we borrow more money which then has to be paid back with interest, so we borrow more and so on until total collapse of the currency.
Posted on: Sun, 16 Jun 2013 15:32:27 +0000
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