Reached into his pocket and pull the large role of tickets. Depending on how many of them, he feels pretty good. You know you are not worth the paper on which it is printed? Huh? Let me explain.
Yes, these notes legal because the people in Washington passed a law, they must be accepted for payment. Federal Reserve Notes are and they say right on the bill, "E" legal for all debts, public and private. "It's OK, but if you toThe U.S. Mint buys gold or silver? Years ago, as they, too, but not 1971st
Almost everyone has bought shares in a company. The company issues shares and per share represents a portion of the equity in this company. E "against the interests of shareholders, the issuance of new shares, unless something of equal value. Why?
Let's keep it simple. Let us assume that the company is worth $ 100,000 and issued 100,000 shares. Titlea book value of $ 1.00 per share. If the officers of the company decides to hire an additional 100,000 shares of security guards (soldiers), lease question (not buy) a plane, you raise (the personal accounts do these people, not the production) and Directors' pay more (the same amount production are present), you'll notice that all these costs are not winning. The value of all parties is now 50 cents per share because the value ofBusiness has remained the same. U.S. $ 100,000 divided by 200,000 shares of 50 cents per share.
This has to do with money? Have you seen the paper that the Federal Reserve Bank (it is not federal) still maintain a reserve was an auction of Treasury bills. Sir Alan Greenspan, has approved the printing of these T-bills. With a little 'paper and ink, has billions of dollars in debt have been created from the government. And who is the government? YOU. Every time the Fed turns on thePrinting machines for the sale of government bonds effectively diluted the value of money have. This is called inflation. Unless the rate increases the productivity of land, the amount, since its currency depreciates.
What do you care? What does that all cost more, because your money is less. This is monetary inflation, and has nothing to do with the delivery of goods. But (one day, who knows when), these bonds will be refunded. The idea of the centralGovernment is to keep the water in the price to make them to pay the debt in dollars, cheaper and less expensive. This is a method of money creation, rather than raise taxes again to pay for it.
Throughout history, there were dozens of private banks and government offices have been wrongly issued (Fiat) in cash and in all cases failed to be lost and that the holders of counterfeit money. That this time will be the case? I would not bet against it.
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