“Olde Reb”/ PPJ contributor
Last year $8.4 trillion was handled by the FRBNY from the auctions.. There is NO information available as to how it was dispersed.”
The headlines screamed that we needed to increase the National Debt to prevent an economic collapse. Wait a minute. Is that the whole story?
Much is said of how the increase of the National Debt ceiling is inflationary, and it surely is. But the gain by the United States government is only temporary. The real profit goes to the Federal Reserve and Wall Street but that profit is hidden from Congress and the public.
There are two conceivable ways the National Debt can be financed. The manner projected in the mass media and by government is that the government borrows from the public. If this was the entirety of borrowing, there would be no inflation. The Fed could handle the transactions as a broker and receive commissions. The money transfer is the same as the payment of taxes but the government would promise to pay interest on the funds. Inflation by this method of financing is not possible. More