US Economy & Recession -
As all of us know that, US Economy is in Recession. Recently the US Government has printed literally US $ 1.2 Trillion and increase its Monetary Base and pushed this printed money in the Monetary System.
US Government has never ever printed this much amount of money in past 100 years. See the Graph. The Graph shows that after 2007, US Government has doubled its Monetary Base. Means it has printed money in past one year only that it had never ever printed in the past century....!!!!!
And the Fiscal Deficit of USA is rising more and more..... USA is borrowing Money to fulfill its Fiscal Deficit, fuel its Growth & its other expenses. So How USA is fulfilling its Fiscal Deficit?
Well, by following 3 ways -
01) Borrowing from Foreigners (China, Japan, India, Europe...etc..)
02) Borrowing from US Citizens
03) Printing Money
Yes.... USA Fed government has issued (Sorry Printed) Treasury Bonds worth of Billions and Trillions of Dollars and sell this Debt to its own citizens as well as other countries all around the aorld. China Tops the List of US Debt Owner (Almost US $ 1 Trillion).
So Now, Fed Government has printed Money & Borrowed Money from its citizens and foreign countries and pushed it into the US Economy to battle the Recession. But Now What? Have you ever think that, How US Government will repay this Debt & absorb the printed Money?
How USA will repay this Debt? -
01) By Increasing Tax Burden on US Citizens
02) By reducing Expenses
03) By allowing Inflation to go high so that it can repay its debt from hyperinflated currencies
Now, the Congress government can't do the first 2 things to extreme degrees. In fact, No government can increase Taxes and reduce Expenditure from certain limits. So here comes the last option. US Government will allow inflation to go high. Because it has already printed money and pushed it into the US Economy so the chances of hyperinflation are there.
So once the Hyperinflation will come, It may pay off all of its debt with inflated currencies. But again Hyperinflation is not a good thing. It can destruct whole the economy. So US Government has to absorb this Liquidity (Printed Money)
So It will have to absorb this liquidity from the monetary system once the economy bounce backs. In short, right now the US Dollar is the terribly flowing currency. US Government has increased the reserves of its Banking system by printing money so that Banks can lend more and thus economy continues to expand.
Now, How this Information is useful to Rich people?
Well, Rich people of this world know the game of money by US Government since years. They know that US Dollar is not a derivative of Gold anymore but it is a derivative of a Debt Now. And they know that sooner or later, Hyperinflation will come and right now US Government has printed money and liberalize the borrowing laws. So they are taking loans after loans to expand their Businesses, doing Investments & acquiring Cashflow producing Assets out of that Debt.
Why they are doing so? Well, because they know that, sooner or later hyperinflation will come and they will repay all of their debt with inflated currencies in future and free up their Assets from the Debt and become richer than ever....!!!!!!!!
Why what the Middle Class people are doing right now? -
They are struggling to find out a safe and secure job, fighting against their companies to raise their salary and depending on the government and hoping that government or the company in which they are working will take care of them after their retirement....!!!!!!
As all of us know that, US Economy is in Recession. Recently the US Government has printed literally US $ 1.2 Trillion and increase its Monetary Base and pushed this printed money in the Monetary System.
US Government has never ever printed this much amount of money in past 100 years. See the Graph. The Graph shows that after 2007, US Government has doubled its Monetary Base. Means it has printed money in past one year only that it had never ever printed in the past century....!!!!!
And the Fiscal Deficit of USA is rising more and more..... USA is borrowing Money to fulfill its Fiscal Deficit, fuel its Growth & its other expenses. So How USA is fulfilling its Fiscal Deficit?
Well, by following 3 ways -
01) Borrowing from Foreigners (China, Japan, India, Europe...etc..)
02) Borrowing from US Citizens
03) Printing Money
Yes.... USA Fed government has issued (Sorry Printed) Treasury Bonds worth of Billions and Trillions of Dollars and sell this Debt to its own citizens as well as other countries all around the aorld. China Tops the List of US Debt Owner (Almost US $ 1 Trillion).
So Now, Fed Government has printed Money & Borrowed Money from its citizens and foreign countries and pushed it into the US Economy to battle the Recession. But Now What? Have you ever think that, How US Government will repay this Debt & absorb the printed Money?
How USA will repay this Debt? -
01) By Increasing Tax Burden on US Citizens
02) By reducing Expenses
03) By allowing Inflation to go high so that it can repay its debt from hyperinflated currencies
Now, the Congress government can't do the first 2 things to extreme degrees. In fact, No government can increase Taxes and reduce Expenditure from certain limits. So here comes the last option. US Government will allow inflation to go high. Because it has already printed money and pushed it into the US Economy so the chances of hyperinflation are there.
So once the Hyperinflation will come, It may pay off all of its debt with inflated currencies. But again Hyperinflation is not a good thing. It can destruct whole the economy. So US Government has to absorb this Liquidity (Printed Money)
So It will have to absorb this liquidity from the monetary system once the economy bounce backs. In short, right now the US Dollar is the terribly flowing currency. US Government has increased the reserves of its Banking system by printing money so that Banks can lend more and thus economy continues to expand.
Now, How this Information is useful to Rich people?
Well, Rich people of this world know the game of money by US Government since years. They know that US Dollar is not a derivative of Gold anymore but it is a derivative of a Debt Now. And they know that sooner or later, Hyperinflation will come and right now US Government has printed money and liberalize the borrowing laws. So they are taking loans after loans to expand their Businesses, doing Investments & acquiring Cashflow producing Assets out of that Debt.
Why they are doing so? Well, because they know that, sooner or later hyperinflation will come and they will repay all of their debt with inflated currencies in future and free up their Assets from the Debt and become richer than ever....!!!!!!!!
Why what the Middle Class people are doing right now? -
They are struggling to find out a safe and secure job, fighting against their companies to raise their salary and depending on the government and hoping that government or the company in which they are working will take care of them after their retirement....!!!!!!
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