Dostoevsky wrote, “Be simple and rediscover the world.” When I read dozens of advisories, I sometimes dream that economics could be simple. How about this: the US Treasury issues bonds, the Federal Reserve buys these bonds with money it creates with the computer, money brought about from thin air. It’s money that nobody worked for an nobody took risks for. The newly created money amounts to over one trillion a year. Its taking more and more newly created money to produce less and less in the Gross Domestic Product. That’s a trend that could easily end in hyperinflation.
Meanwhile, the population of the US is increasing in age and, unfortunately, we are producing fewer and fewer children. Within a few decades we will see two youngsters supporting every ten oldsters. This is an unsustainable problem. I could go on page after page with problems like these, but already I’m out of breath. ... Log in or subscribe to continue reading.
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