You may have heard the term “monetizing the debt”: As an example, if the #US Government wants to borrow $1 million, they go to the FED to borrow the money. The FED calls the #Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest. To add insult to injury, the government has to create a bond for $1 million as security for the loan. And the rich get richer. The above was just an example, because in reality the FED does not even print the money; it’s just a computer entry in their accounting system. When was the #Income #Tax created? If you guessed 1913, the same year that the FED was created, you get a gold star. Coincidence?
