Never have so few plundered so much from so many (Winston Churchill on the Federal Reserve System)
“I have 100% confidence in being able to control things.” Ben Bernanke
“My models didn’t work!” Alan Greenspan
When a country wants to create some currency, the government sells a bond to their central bank. The central bank writes a check against a zero balance in their checking account for however many dollars, euros, yen, or whatever the government wants, and it buys the bond. The currency has now sprung into existence, and later can be used to redeem the bond. Therefore, the bond is an IOU for the currency. But since the currency is also a claim check to redeem the bond when it matures, the currency is an IOU for the bond. Get it? No, me neither. If YOU did that, you would be accused of fraud. Welcome to the rabbit hole, welcome to our fiat-based, debt soaked monetary system.
“This will not end well,” Chicago Slim.