Greg Hunter Weekly News Wrap-up: Trump vs. Gates, Fed Gone Wild, Barr Prosecutes Coup? - Video

Hey that inflation thing that everyone is so scared of … well…
Ok will arseholes raise prices and try and screw with people yes absolutely but is there sound cause for it.

Back when there was a US dollar prior to 1974 each dollar from the treasure was a note of deposit on the minted date.
Meaning that the 1972 price for gold at 42.40 USD was the physically redeemable amount of gold for that bill.
So if you took a 1972 US treasury note to the Assay office in any county in the USA they would give you 1/42.40 OZ of gold for it.
In 1880 the price of gold was 20usd oz so a 1880 gold coin weighs 1OZ
The Resrevre Bank on the other hand had an amount of Gold on deposit and every dollar they printed was against that amount of gold up to 1974. By law the reserve notes could be traded for treasury notes 1:1 giving the Fiat indirect value.
After 1974 as the fed continued to print money they are required to keep 3% of printed in deposit this is known as the reserve and can be real estate, stock and debt bonds.
They had also upto 2008 a requirement to have 3% paid into circulation.
So technically if more money was printed it caused inflation due to a devalue in exchange but the exchange was already gone so no inflation happen there.
The presence of more currency in an economy does create tempory price inflation but those profits create greater wealth growth.
As the money was paid to each holder a presumed debt was satisfied if bob paid jane and jane paid sally 100usd then the currency had positive velocity of 200% as both bob nd janes debt was paid.
Up till 2007 there was positive velocity because new wealth was created in our system through transmutation of natural resource.
In 2008 we reached the stopping point of zero monetary velocity.
From then each dollar in circulation was created by disposing of historical wealth this is called negative velocity.
If you are a middle man and do not produce only liquidate others assets there was no difference for you.
By 2012 the rate of ETF redemptions was about 138 USD per USD meaning about 138USD of wealth was inm trade for one dollar of currency.
To slow the economy and reduce liquidity and prevent dollar devaluation Obama lower the circulation from 2.3T USD to 158B USD and moved 600B to IMF as reserve. So we have been working an economy of @90T on less than the required 3% paid into circulation.
In December of 2018 the cost of a foldable dollar was 487 USD in account.
This is what has been know as the ETF and repo market problem.
So we have been short about 2.3T USD from our economy and it has caused everyone to struggle to get less and less on main street.

When the bill passed to send us a check it added the purchase of the US Federal Reserve Bank by the Treasury of the United States of America. We bought 84% of the bank. So now every loan we ever took out and all the Municipal bonds and Prime loans pay interest to the Treasury of the USA.
So instead of paying 84 cents of every tax dollar to a third party bank we pay our selves.
Every federally guaranteed loan just became treasury income.
The other 16% is owned by the five Fed banks.

So let that gell for a second we have a national debt that we have been paying 84% of our tax money to for the last 100 years.
Now we own the bank
We can in theory close those debts at anytime without defaulting
So if we had a total refinance at 0.0025 and a debt of @24.5T we would now pay 9.7B interest
With 3.3T collected this year there is a WHOLE LOT we can do.

If we paid 6.25% on the old debt of 77T that would be only another 770 billion
That leaves more than 2.3T to dump on main street and get the party rolling.

We now own 84% of the bank and only have to payout 16% of the interest payment.
So this went on till 2007