Posted tagged ‘Printing’

Does The Supply Of Money Have To Increase To Accommodate Increasing Production?

April 29, 2013
Monopoly Money

Monopoly Money (Photo credit: John-Morgan)

QUESTIONS CONCERNING MONEY.

I’ve had some questions recently that have to be addressed. 1) If production increases without a corresponding increase of money, would that not cause deflation? 2) If the currency is to be increased to correspond with the increase in production, how is it increased without theft? The simple answers to these two questions are yes to the first one, and, it can’t, to the second one, but that doesn’t help us understand the why’s and how’s.

UNDERSTANDING MONEY.

I wrote a post titled, “We’re All Born In The Middle Of The Story”, in which I quote Thomas Sowell who said, “results observed at a given point in time may be part of a process that stretches far back in time“. Understanding this quote should be our default position for everything we observe and analyze. When it comes to money we are all born in the middle of the story. What do I mean by that? (more…)

Economic Reality Will Prevail, Even If The Debt Ceiling Is Raised.

November 27, 2012
English: Chart of the United States' debt ceil...

English: Chart of the United States’ debt ceiling from 1981 to 2010 in $ trillion. This chart tracks the debt ceiling at the end of each calendar year. Years are color coded by congressional control and presidential terms highlighted. Data source: http://www.treasurydirect.gov (Photo credit: Wikipedia)

The debt ceiling will go up in one form or another. But the economic reality, which we discussed in a previous post What Comes First Production Or Consumption, will eventually make it impossible to climb out of the debt hole we have allowed our politicians to dig us into.

The only way the Government fund’s itself is through the multi-layered process of taking from the production of private individuals in the free market. Taxing, borrowing, and counterfeiting money, are the three ways Government takes production from the private sector. Taxing is the direct taking of what we produce. Borrowing is a Government promise to pay back with interest, what individuals freely give to them in exchange for this promise. The only way this promise can be kept is through (more…)

Counterfeiting by the Federal Reserve, Although Legal, Still Results in Theft.

September 29, 2012

Counterfeit—1. make an imitation of something genuine so as to defraud. 2. an imitation made to deceive.

The Federal Reserve: The Biggest Scam In History

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Is it legal for you to counterfeit money and try to purchase goods with your printed dollars? It’s illegal because it is theft. You are exchanging something for nothing. You get a good or service that was the property of someone, and they get a counterfeit bill. When that person tries to use the counterfeit bill in a future exchange and it is swiped with the pen and found to be counterfeit, at that moment he knows the good or service he once owned was stolen.

When the Federal Reserve injects counterfeit money into the economy it’s (more…)