Thursday, September 25, 2014

WHO IS THE LARGEST SUB-PRIME LENDER IN THE WORLD?

THE FED

THE CLIENT?

THE US GOVERNMENT

The Federal Reserve, a bank created to bail out the banks when the banks do stupid things, currently holds about a quarter of all U.S. debt. The Federal Reserve creates money out of thin air and currently buys 40% of U.S. debt issuance. This is the reason your mom and dad paid a nickel for a soda when they were young and you now pay $5 a bottle at amusement parks for the same thing (actually you don't get as good a soda as they had because their's was made with sucrose and your's is made with high fructose corn syrup because of the sugar lobby). The extra money in circulation causes prices to go up and hurts the poor more than the rich as the poor do not have assets that appreciate to "keep up with inflation." Keeping up with inflation is basically owning hard assets that go up in price as more money is required to buy the same amount of goods with more money in circulation. 

Who is to blame? 

Read how the FED allows government to mimic an irresponsible freshman with their daddy's credit card below.  

http://mises.org/daily/6894/The-Worlds-Largest-Subprime-Debtor-The-US-Government

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