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FSN: Money Printing Is the Only Thing Keeping the System Afloat
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Alasdair Macleod
Gold Money
Last Monday GoldMoney published my article showing the frightening growth in money-quantities for the US dollar. In that article I stated that the hyperbolic rate of increase, if the established trend is maintained, is now running at over $300bn monthly, while the Federal Reserve is officially expanding money at only $85bn.
The first thing to note is that the Fed issues money because it deems it necessary. The hyperbolic trend increase in the quantity of money is a reflection of this necessity, implying that if the Fed’s money issuance is at a slower rate than required, then strains will appear in the financial system. There are a number of reasons behind this monetary acceleration, not least the need to perpetuate bubbles in securities markets, but there are three major underlying problems.
Government spending
Federal government spending is accelerating, due to rapidly escalating welfare commitments, not all of which are reflected in the budget. Demographics, particularly the retirement of baby-boomers, government-sponsored healthcare, and unemployment benefits are increasing all the time; yet the tax base is contracting because of poor economic performance and tax avoidance. Furthermore, state and municipal finances are dire.
Continue Reading at GoldMoney.com…
2012-10-15 03:40:23
Source: http://silveristhenew.com/2012/10/14/money-printing-is-the-only-thing-keeping-the-system-afloat/
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