From what I know, the government can make cash out of thin air, but this causes inflation levels to rise. Or is everything they’re giving out just their surplus?
In: Economics
Fiat currency is controlled by the FED which is owned by shareholders. Those shareholders receive the interest from the FED loaning out fiat currency that is backed by the good faith of the people using it. People are stupid and think the FED is controlled by the gov. Those same stupid people believe the FED when the FED tells them inflation is 2%. Look at the stock market. The FED buys every single publicly traded everything every day. The do this through the plunge protection team,quantitative easing, bail out of the banks in 2008. The FED owns 9 trillion in public assets inflating the price of everything. When will the FED crash the market by unwinding the balance sheet? Or will the FED continue to scare the people into more QE so the fed can add trillions more to the balance sheet?
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