Debt Ceiling Hocus-Pocus Illusions

Raising the debt ceiling means printing more money (electronically).  After the debt ceiling is raised the Department of  Treasury will print up some new government notes, bonds and bills and sell them to the Federal Reserve. The Federal Reserve will then create  some new money and give it to the US Treasury. All this does is dilute the existing currency and weaken the value of the dollar. Businessmen  pay close attention to the actions of the government in regard to creating new money. The second the debt ceiling is raised, they raise prices to compensate for the diluted currency. Raising the debt ceiling will accomplish nothing in the long term except put government deeper into a debt they can not pay back.

How Modern Banking Works

This post is meant to be educational so that everybody knows how our monetary system works. Knowing how the system works is the first step to identifying the problems and considering solutions.

How modern Fractional Banking works:

line 1 Bank Starting Capital………………….1,200

line 2 Reserve for Bank working capital……………………………………. ..200

line 3 Private Loans……….1000…….1000……..1000…….. ..1000