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Old 08-06-2007, 05:38 AM
The once and future king The once and future king is offline
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Join Date: Aug 2004
Location: Iowa, on the farm.
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Default Re: A conversation about inflation

Isnt saying that the government prints money to erode their debt an absurdity?

If the Government can print money, why is it in debt? Also, what do people think that debt is?

The government debt itself will have been created mostly out of thin air by the Banking system of fiat money. The debt is inflating in and of itself of course. It is not the Governement that mostly creates the money supply it is the PRIVATE banking system.

For all the money in circulation in the US economy at the moment only circa 5% comes from the government, the rest was created by the money as debt banking system. This is why the Government is in debt.

It is worth noting that under the present system if there was no public and private debt, there would be virtually no money.
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