Government spending doesn't necessitate increase of money supply. The conspiracy here is that the centralized banking system inflates the money supply by money printing and control of interest rates, thus robbing people of their savings and creating the boom-bust cycle which causes economic instability.
Which is total crap, because money is only printed by the Fed when Congress spends more than they have.
Interest rates should be higher, for longer, but the natalist regime wants to bring them down because their debt is about to roll over at 4.1%, creating a $1.6T bill.
But hey, you wanted the higher birth rate. Prepare for the consequences.
No, the Fed corporation functions as a National central bank and creates money. The Treasury, a government institution, issues bonds to borrow money. This means that the Treasury only uses money that has already been created by the Fed, either obtained by taxes or when the Fed bought Treasury debt. The Treasury mints coins but that's a miniscule amount of the money volume.
But that's still not where over 90% of the money comes from - which is commercial bank loans and credits. This is the driving process behind money creation and that's why lowering interest rates leads to more loans and increase of money supply aka inflation.
It's amazing that people are so ignorant how the money system works and where money comes from. I mean, how can anyone be critical of the system (or any alternative system like gold and BTC) if they don't even know how it works? I bet you that not a single person on this forum beside me knows this widely available basic information. Why? Because people are lazy and think they know it all and prefer writing bs instead of reading a damn book. It all comes to pride and lack of humility which prevents people from learning from others.
Government spending doesn't necessitate increase of money supply. The conspiracy here is that the centralized banking system inflates the money supply by money printing and control of interest rates, thus robbing people of their savings and creating the boom-bust cycle which causes economic instability.
Which is total crap, because money is only printed by the Fed when Congress spends more than they have.
Interest rates should be higher, for longer, but the natalist regime wants to bring them down because their debt is about to roll over at 4.1%, creating a $1.6T bill.
But hey, you wanted the higher birth rate. Prepare for the consequences.
Lol. The fed doesn't print money the Treasury does.
There is no reason to believe this will do anything to any birth rate.
No, the Fed corporation functions as a National central bank and creates money. The Treasury, a government institution, issues bonds to borrow money. This means that the Treasury only uses money that has already been created by the Fed, either obtained by taxes or when the Fed bought Treasury debt. The Treasury mints coins but that's a miniscule amount of the money volume.
But that's still not where over 90% of the money comes from - which is commercial bank loans and credits. This is the driving process behind money creation and that's why lowering interest rates leads to more loans and increase of money supply aka inflation.
It's amazing that people are so ignorant how the money system works and where money comes from. I mean, how can anyone be critical of the system (or any alternative system like gold and BTC) if they don't even know how it works? I bet you that not a single person on this forum beside me knows this widely available basic information. Why? Because people are lazy and think they know it all and prefer writing bs instead of reading a damn book. It all comes to pride and lack of humility which prevents people from learning from others.