I heard this on the news today so had to do a little investigating. This is one of the things I found.
“Thursday, November 12, 2009 by John Paul Koning
Governments can pay their bills in three ways: taxes, debt, and inflation. The public usually recognizes the first two, for they are difficult to hide. But the third tends to go unnoticed by the public because it involves a slow and subtle reduction in the value of money, a policy usually unarticulated and complex in design.
Just as kings debased coins to help pay for their wars, the Federal Reserve used inflation to help pay for US participation in World War I. It did so by creating and issuing dollars in return for government debt. In effect, the Fed’s balance sheet became a repository for war bonds. Furthermore, the Fed brought this debt onto its balance sheet at a higher price than the market would have paid otherwise, a subsidy born by all those who held money as its purchasing power declined.”
So, basically, we still owe the Federal Reserve this debt and it is still part of our national debt because, like all our other debt, we just pay the interest. How stupid and irresponsible is that? Does no one in government know how to manage money? How much more in interest have we paid than the debt amount in the first place? Even a dog (which I am) knows better than this. How about someone in government getting a little horse sense!
Your friend, Harley The spin stopped here today
PS. Do yourself a favor and read the Debt and Destruction link below
- Debt and Destruction (lewrockwell.com)
- BACK TO the Future: from 1914 (WWI) to 2014 (Bradbury Pound) (forumnews.wordpress.com)