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by Two Moons on 20 January 2013 - 18:01
Apples and oranges, you can do better.
by Two Moons on 20 January 2013 - 18:01
As far as I'm concerned the politicians can close the doors and turn off the lights if they can't live within a budget.
by J Basler on 20 January 2013 - 19:01
When people talk about comparing apples and oranges in a conversation that is code speak for saying that they have a college degree.
by Felloffher on 20 January 2013 - 20:01
Moons,
The treasury exchanges bonds (a promise to pay) and FED can print money out of thin air to purchase them. The only money the US government is required to pay back to the Fed is the interest due on issued bonds and when they don't have the money to pay interest the government issues more bonds and uses the money received to service the debt. The Fed can also create money to purchase bonds back from the market when it see's fit. The scheme only works if there is a demand for the currency, but it doesn't come with out cost. The middle class is being destroyed because of these policies, monetizing debt increase the money supply which in turn affects purchasing power of a currency. This is the reason costs for many things are rising. When the rest of the world drops the USD and it will at some point, you will then see hyperinflation take over. The government will continue to monetize debt, but it will be at a much greater cost to the dollar and it's purchasing power.
I'm not an expert by any means, but economics interest me.
The treasury exchanges bonds (a promise to pay) and FED can print money out of thin air to purchase them. The only money the US government is required to pay back to the Fed is the interest due on issued bonds and when they don't have the money to pay interest the government issues more bonds and uses the money received to service the debt. The Fed can also create money to purchase bonds back from the market when it see's fit. The scheme only works if there is a demand for the currency, but it doesn't come with out cost. The middle class is being destroyed because of these policies, monetizing debt increase the money supply which in turn affects purchasing power of a currency. This is the reason costs for many things are rising. When the rest of the world drops the USD and it will at some point, you will then see hyperinflation take over. The government will continue to monetize debt, but it will be at a much greater cost to the dollar and it's purchasing power.
I'm not an expert by any means, but economics interest me.
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