If the federal government insists on needing to borrow money - instead of just printing it and managing the money supply under the oversight of a Congress that can be voted out when ever it screws up (unlike the too remote and powerful Fed) - then there has to be inflation to help keep up with the interest expense.
The "Keynesian inflation" orchestrated by the privately owned Federal Reserve was also needed in the private sector so that business and consumers could sort of keep up with their own interest debt burdens. Though continuing bankruptcies in the private sector - both commercial and consumer - reflect that usury is always difficult to keep up with in the aggregate.
While the usury system is proving to be extremely burdensome and a drag on populist wealth, inflation goes hand in hand with it.
Keynes stated that inflation covertly robs the people, but stop inflation and you end up with the current deflationary environment - that was coped with by the elites by massive borrowing and re-inflation of fiat money to plug the black hole that has blown up the economy when the inflationary bubble burst, as it periodically does.
Peter Schiff's family has full knowledge of how the Fed and the usury system works and if the 1913 dollar had been kept stable - instead of plunging 95 percent in value - the Fed and the usury system it enables would have been relegated to the dust bin of history decades ago.
Any readers who say usury is necessary for a modern economy should look into how more enlightened people were during the so-called dark ages when it came to surviving without usury. They only had to work six weeks a year. And all their needs were met. Today, if the populist peasants wanted I-pods and cell phones, they might have to work ten weeks a year.
Cathedrals - the equivalent of modern make work warfare spending - was accomplished without private debt.
The Continental currency which was not tied to government borrowing worked very well and actually traded higher than its underlying precious metal value. Until the British flooded the young U. S. with massive amounts of counterfeit currency. That's what killed the Constitutional dollar. and made it unworkable.
Financial terrorism from Britain
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