Actually the US govt has figured it can stay in business stimulating the economy with QE and other measures. The problem, let me put it in a small story.
Say you have a corporation call it the USA Corp and they issue 1 trillion shares of stock and in fact make all shares bearer shares. Then distribute these shares to people who actually do work or trade items for these shares.
Let us say 1 share = $1 get the picture your dollar bill is really a receipt for a "dollar" that does not have any basis in reality. (it used to be based on gold and or silver at a fixed unit to $ value ie $35 $ to one ounce of gold.
With QE and such the govt simply prints more shares in the company and they spend them into existence buying things like stocks and overpriced toilet seats for NASA. let us say the QE is 10 billion a month at the end of the year they have stimulated the economy with 100 billion or 1/10th of all shares in existence.
The govt did not produce a product or manufacture anything they simply printed more shares of the corporation and sold them and they got the profit. While at the same time there is now 1.1 trillion $$$ in existence.
So say you had 1 dollar bill or share in the corporation and your share represented 1/trillionth well now your 1 dollar in your pocket was just devaluated to 1 of 1.1 trillion you just lost 10% of your value they robbed you and yours for 10% of your savings.
So each month the govt prints more shares and injects them into the market, ie keeping stock prices high for the rich f***s .
In reality if you were a private company and you wanted to issue more shares you would have to do a stock split and compensate all other stock holders a equal percentage of all stock issued. ie in the scenario above they would have to issue you 10 cents in addl stock for free bringing your shares to 1.1 up form one. otherwise it would be THEFT.
Why do we let the country get away with this fraudulent practice?
The Dollar was indexed to something of value until 1965 when they took the silver out of the coins. Right now silver dime from 1964 in crappy condition just the silver value is $1.45
http://www.coinflation.com/ look near botton of page for older coins, this is the actual melt value of the metal in coins. So I ask you did the silver in a dime gain weight or has the government debased the currency over 14x using this as an example.
This is THEFT without a gun. The pen can steal much more than the sword in the long run and this is the game our politicians play, give the image we are a great country but make it on th ebacks of the little people by stealing anything they save through devaluation and printing money. you cannot print somehting of value and get away with it...
Next you get the finances of Zimbabwe of the 1990's an germany post WWI id a wheel barrel full of money to buy a loaf of bread.
And for others Hyperinflation is not 10-20% a year. it is 10-20% a day, people ask bosses for pay daily as by the end of e the week thier paycheck cannot keep up with the cost of food!
Stock up on beans and rice now... its coming this summer or next winter...
George
Almost anybody surfing these forums is familiar with Austrian economic school views and the drill that goes along following lines:
- massive US debt
- even bigger unfunded liabilites
- massive FED printing of money
- mismanagement, debasing of currency has led (across space and time) to one thing and one thing only which is hyperinflation
Sitload of books predict the financial doomsday - some of them now almost a decade old.
So how come US and it's counterfeited dollar are still afloat? Why isn't it happening?