Category: Economics, Finance, and Political Economy

–“How can a government, that’s $28 trillion in debt, spend trillions of dollars that it does not have? Well, one major way is the Federal Reserve creates money-out-of-thin-air and then ‘loans’ it to the government by buying the government’s bonds.”– Ron Paul

RON: Serious Questions: 1) What right do savers have to the preservation of the purchasing power of a fiat currency? 2) What right do lenders have to the preservation of the purchasing power of debt+interest? If these gains are obtained at the expense of supply. AFAIK, none. 4) Why does anyone have a right to produce an artificial scarcity? 5) the only answer to this question is: … a) contractual frictions created for business velocity (production cycles), … and; … b) friction on the ability to save for retirement. So 6) Is (a) true? And can (b) be solved? Science not philosophy, ideology, or sophistry.  

–“How can a government, that’s $28 trillion in debt, spend trillions of dollars that it does not have? Well, one major way is the Federal Reserve creates money-out-of-thin-air and then ‘loans’ it to the government by buying the government’s bonds.”– Ron Paul

RON: Serious Questions: 1) What right do savers have to the preservation of the purchasing power of a fiat currency? 2) What right do lenders have to the preservation of the purchasing power of debt+interest? If these gains are obtained at the expense of supply. AFAIK, none. 4) Why does anyone have a right to produce an artificial scarcity? 5) the only answer to this question is: … a) contractual frictions created for business velocity (production cycles), … and; … b) friction on the ability to save for retirement. So 6) Is (a) true? And can (b) be solved? Science not philosophy, ideology, or sophistry.