[Peace-discuss] The money was there all along

[E. Wayne Johnson]

Bob is correct on this.  "Printing" money out of thin air produces 
inflation.  Presently it is difficult to determine the actual
rate of inflation in the US since the government is now calculating the 
price indexes in a way that is deliberately deceptive.
Further the Fed no longer publishes one of the monetary indexes of 
inflation (M3). 

However the rate of inflation is presently estimated at about 12%, which 
means that value of the dollar will be cut in
half in about 6 years.  A 1913 dollar is worth less than 4 cents today 
because the Federal Reserve has been "printing" money
since that time, and with nothing much to back it since 1971 except b.s. 
and attitude.

The problem is that the world is getting tired of our b.s. and it doesnt 
much like our attitude.

EWJ

Bob Illyes wrote:
> Actually, John, we don't have to borrow it. We can also "print" it, 
> with a little stealth help from the Federal Reserve. The usual image 
> of Treasury printing more bills is not the way it is routinely done.
>
> The problem with printing extra money in any manner is that it tends 
> to produce general inflation in the long run. It is favored by 
> politicians who aren't willing to raise takes. In the short run, they 
> can have their cake and eat it too, like the "investment banks", which 
> had their own non-governmental money printing presses.
>
> Bob
>
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