Inflation and the national deficit can be blamed on the Federal Reserve, which doesn't have to answer to anyone but private banks; in fact the Federal Reserve was founded to be a council of the biggest banks. The policy of the Federal Reserve is to create money out of thin air, which is the sole creator of inflation. Inflation is not rising prices, but rising prices are a symptom of the increase in the money supply due to the Federal Reserve's creation of money out of debt.
The process of Fractional Reserve Banking is the basis of our monetary system instead of the gold standard. It starts with the Treasury Department issuing Bonds to the Federal Reserve, which is a debt, and in return the Federal Reserve prints money to pay for the bonds thereby funding the government. That newly printed money is deposited into a bank, which is required to hold on to 10% of the deposit. The other 90% of the money can be loaned out to anyone wanting money, which can be deposited and reloaned and so on. A initial deposit of $1000 can create an additional $10,000 in deposits, out of debit. So in reality all money created now-days is based upon debt. A reductionist view can be applied to an individual; you want money you don't have to pay for a house, what do you do? You take out a loan; that money was created out of debt.
So when the government wants to pay for something they don't have the money for, they print money. The very process of printing more money CAUSES inflation and debt. The hidden side is that the process robs all citizens of the value of their money and is a hidden TAX, which hurts the poor and middle class the most.
Most of Congress don't understand the true face of the monetary system and they don't even have control over the process unless they pass a law restricting the Federal Reserve or abolish it. Their ignorance is illuminated by the swinging of the economy ever since the creation of the Federal Reserve in 1913.
The sad and unfortunate truth is that the biggest banks, the ones that created the housing bubble and paid themselves handsomely for it with TARP, are really the ones in control. Unlike most of Congress, they KNOW exactly what they are doing.
If you are curious to fact check this: learn about Fractional Reserve Banking and the Federal Reserve.
The process of Fractional Reserve Banking is the basis of our monetary system instead of the gold standard. It starts with the Treasury Department issuing Bonds to the Federal Reserve, which is a debt, and in return the Federal Reserve prints money to pay for the bonds thereby funding the government. That newly printed money is deposited into a bank, which is required to hold on to 10% of the deposit. The other 90% of the money can be loaned out to anyone wanting money, which can be deposited and reloaned and so on. A initial deposit of $1000 can create an additional $10,000 in deposits, out of debit. So in reality all money created now-days is based upon debt. A reductionist view can be applied to an individual; you want money you don't have to pay for a house, what do you do? You take out a loan; that money was created out of debt.
So when the government wants to pay for something they don't have the money for, they print money. The very process of printing more money CAUSES inflation and debt. The hidden side is that the process robs all citizens of the value of their money and is a hidden TAX, which hurts the poor and middle class the most.
Most of Congress don't understand the true face of the monetary system and they don't even have control over the process unless they pass a law restricting the Federal Reserve or abolish it. Their ignorance is illuminated by the swinging of the economy ever since the creation of the Federal Reserve in 1913.
The sad and unfortunate truth is that the biggest banks, the ones that created the housing bubble and paid themselves handsomely for it with TARP, are really the ones in control. Unlike most of Congress, they KNOW exactly what they are doing.
If you are curious to fact check this: learn about Fractional Reserve Banking and the Federal Reserve.
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