Does the Federal Reserve Casue Inflation – Yes

“Some men are educated beyond their intelligence, way beyond” Ten Bears

I find economics interesting in that so many opposing views seem to make sense on paper. So much so that every answer looks “right” on paper. The problem is that we do not live our lives on paper. We work and reside in the real world. Where we must produce something of value in order to benefit financially. The problem with economic theories in general is that they all sing their song to a particular cause.Gaining praise and recognition from the chosen few whom benefit. Inflation is coming and the Federal Reserve is creating this by its actions and to cover up a flawed design that only compensates those in control.

Many will argue that monetary policy is an advanced system of checks and balances that only someone educated in that field is capable of understanding. (Economists) The mere actions of the fed not wanting to reveal its inner sanctum to the populace on those grounds supports this statement. But, in reality it is not all that difficult to understand the important points. The rest as they say is irrelevant.

Many claim that fiat currency is the cause as it is backed by nothing. Well, it was only 1971 when our currency became detached from gold. The reason, we were printing more paper than we had gold. Those that realized this demanded we give the gold as payment. Nixon had no choice but to stop this as we ran out of the shiny stuff.

Relying on the fact that our dollar was the worlds reserve currency therefore it must be honored. Making all transaction that mattered done in U.S. dollars. This theory held strong as we continued to be a leading manufacturing based economy. But it allowed the Fed to continue printing as needed without anyone the wiser.

Our current monetary arrangement is designed that for every dollar produced an equal debt must be created. (Keynesian economics) So the more money out there the more debt that comes with it.
It has been said that the debt is bought as a treasury bill by those that see the value in our currency. Current conditions, as some here have said point to a desire for these such instruments. Without looking any further I might agree. When we look into whom it is that is actually buying the treasury notes, you will find that as of 2009 it is our own government that is making these purchases at a near 50% scale. How is that you may ask? Simple, we print money and then buy our own debt. Giving an allusion of coherence.

It is not the mere creation of money that is the main problem in my eyes as currency needs to be available and kept in a balanced arrangement to population. (Milton Friedman) It is where it goes and how it is returned to us as loans we now receive with its interest. The created funds are used all across the board but mainly to keep up with interest owed to the world bank and fattening the calf.

“Give me control of a nation’s currency and I care not who makes it’s laws”
Amsel (Amschel) Bauer Mayer Rothschild, 1838

Many refer to the Great Depression as the wisdom we need to see through this current crises. I admire history and look to the past often for explanation. The difference now as to then is we are not the emerging powerhouse of production we once were. Think about the time and what it was that came after. We were welcoming in a new boom, our engineering and manufacturing were unequaled in the world. Production and the wealth that followed was envied by other nations. We had the capacity to overcome the debt we took on, today we do not.

One Trillion Seconds = 31.546 years!

The debt we are currently creating has reached a point of no return. $12 trillion dollars plus, recently approved to go to $14.4 trillion and that is just this year. Our current trend will ad One Trillion Per Year minimum for the next ten years. Our interest payments alone by 2022 will be equal to the tax revenue brought in from every working soul in this country. Just the interest!

If this behavior is not creating a inflationary bubble then I am completely mis-informed. How does one repay such debt?