by tonytran2015 (Melbourne, Australia).
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#fiat money, #free health care, #money for everyone, #quantitative easing, #monetary tightening,
Fiat money is just “Coupons for paying taxes and receive goverment’s goods and service”.
1. Fiat money of any nation is just only its coupons:
Former USSR, Eastern European Communist Countries were with a system of fiat money not unlike current USA is. Everyone has his coupons but goverment stores may not be able to supply the needed goods.
With enough reckless printing, “easy to print coupons” may become not appreciated by its citizens and that is when we say hyper-inflation occurs to that fiat money.
There is NO MAGIC in wealth creation with printing fiat money.
2. Printing more coupons as an election promise:
Gullible voters still believe that government has the Wealth Creation MAGIC and can distribute that wealth using its printed coupons.
Logics and the inevitable wake up from the cruel policies in former communist states have shown that no such magic had existed yet voter fools still believe in such magic upon which election candidtes made their promises,
Election candidates should not be allowed to say that “my elected government will provide free health care, will give citizen payments for doing nothing”. The promises are not feasible (It is impossible to provide all citizens with service totalling to more than the works supplied the nation plus its imported services).
Rather election candidates should be required to say only what they can actually do such as “my elected government will freely distribute coupons for use at health care centers. Even for people doing nothing they will still get coupons“. Whether the coupons can bring in the promises is quite another matter.
3. Federal Reserve Bank policies reinterpreted:
2a/- As coupons can be printed at will, holders of coupons batter spend them before the market get flooded with new coupons from any “Quantitative Easing“.
2b/-With the current economic setting giving 100% tax deduction on all interest payments on business loans, everyone has to borrow to be competitive.
The FRB can jack up interest rates (Monetary tightening) to give bigger shares of profit to lenders of coupons (fiat money), or to next tier of lenders (non-central banks) who issue notes promissing to give coupons to the first 10% of these notes presented (brought back) to them (the next 90% will get NOTHING from the issuers but may get something in consolation from the government who issued licenses to these non-central banks).
. Your fiat money (Part 2), https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/.
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