Debt Monetization = Inflation

January 5, 2009 by Sean Tario · View Comments
Filed under: Financial Stuff, Politricks 

OK class, here’s one of the most fundamental lessons in economics…

Monetization of market-less bankrupt debt with no guarantee of recovery in value is the ULTIMATE ACT OF INFLATION. For this case study we’ll speak directly to the US dollar.

Axiom: To monetize debt is to inflate currency

What Does Monetize Mean?
1. To convert into money.
2. To convert from securities into currency that can be used to purchase goods and services.

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PS. The IMF and World Bank strictly prohibit their nation “clients” to monetize their debt… and yet this is EXACTLY what our Federal Reserve, Treasury and Congress are doing and have been doing for years to keep the perceived value of the dollar afloat.

PPS. Our founding fathers warned against this, and the creation of a privately held Federal Reserve, and the implementation of a 2 party political system…

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  • donnaklopez
    The Treasury has the view that if rates are pushed downward for a loan to purchase a home in the United States, the market could get a revitalization. Falling housing prices and the glut of foreclosures are the undermining factors to address before an economic turnaround can occur
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