Over and over we have to hear about how The Fed has to continue ripping us off with its printing press. It's not hard to understand why governments seek keep the deflation bogeyman in the headlines. When The Fed inflates, the U.S. government can pay its debts in ever depreciating dollars.
It's a sweet deal if you're in the privileged position of printing the "reserve currency". Even sweeter if you have a military empire to make sure your creditors continue to play ball. Should a creditor start to doubt your divinity, they risk getting a visit from the freedom fighting liberators:
This insidious tactic is not new in U.S. history. You can go all the way back to the American Revolution, and find that the same legalized theft took place.
John Witherspoon, one of the signers of the Declaration of Independence wrote in 1776: "For two or three years we constantly saw and were informed of creditors running away from their debtors, and the debtors pursuing them in triumph, and paying them without mercy."
Today, it's much harder for creditors to run.
It's painfully obvious that the U.S. government and Fed will continue to "pay without mercy." There is, however, one important thing that has not changed since 1776....
It's called supply & demand, and it too doesn't show any mercy.
Chris Rossini is author of Set Money Free: What Every American Needs To Know About The Federal Reserve. Follow @chrisrossini on Twitter.
No comments:
Post a Comment