The fed just “printed” another Trillion dollars today with the goal of buying US Treasury notes. You know those promises to pay with interest sold by the criminals in Washington. Let’s walk through this transaction:
1 The treasury prints bonds and declares what they are willing to pay in interest if someone will give them money to use now.
2. The fed, a private bank with permission to print our money, thanks to the Federal Reserve Act of 1913, conjures a Trillion dollars out of thin air,
3. The Treasury trades the newly minted debt based bonds to the Fed for their newly minted money that comes at interest. (Also due to the Federal Reserve Act of 1913.)
4. The US Government spends the new money into the economy buying internal improvements and paying for external wars.
5. The private bank called The Federal Reserve gets interest earned in its new bonds, plus interest earned on the new money it loaned to the Treasury, plus the amount of the loan… Nice deal…
6. The gullible, American consumer, American tax payer, which ever you want to call them, buckles down to bear the burden of saving the economy and getting credit flowing again, which also comes at interest.