Quote:
Originally Posted by Geo Oats
wait, let's talk about this in real terms. are you referring to inflation, or taxes, I'm not sure what you're talking about in specifics in that example of 1$ for 1.05.
Put it this way: you get a paycheck for $700 every two weeks for working somewhere (idk what you do tbh). How exactly are you indebted to anyone?
the switch to a floating currency from the gold standard, while a valid point, in reality had very little to do with central banking. one of the reasons why FDR devalued gold was because people started to horde it in the great depression, which made the economy completely halt (compounding the existing economic crises). our currency is hardly interfered with by the FED - only the Canadian dollar is more pure as a floating currency, and really that's a relatively new development because of our stimulus packages and quantitative easing in light of the recession. floating currency has proven to be far more productive for virtually every economy in the world, it's not a conspiracy lol.
I think you have a fundamentally incorrect understanding of the role of the FED, as well as how we came to our current state of inequality, which I'm in full agreement by the way inasmuch as how the cards are stacked in favor of people who are already rich. but that's more a result of policymaking and, what many economists believe, inherent pillars of capitalism.
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i'm not talkin either...when the federal reserve, or a central bank, prints out money for a government, it charges that government to do so...if they print out one dollar in currency, they charge the government the one dollar for the money, plus a fee for loaning them the money...the fee isn't five cents, i just used that as an example...
in order to pay that debt back, the government has to either give them real currency, such as gold (in which case they surrender all their real wealth to the central bank), or they pay them back in cash plus interest for the loan...they give the US a dollar, charge them $1.05 for it, an in order to pay that dollar back, they have to have a printed dollar from the central bank...which they are charged another five cents for (keeping in mind that five cents is an arbitrary number here)...
the whole system revolves around debt...there's simply no way around it when it comes to central banking an fiat currency...every dollar that is printed automatically puts the government in debt to the agency that printed it, an it puts them in debt for a greater amount than the money is actually worth...