... federal government collects only $2.5 trillion a year in revenue. So, the rest of the government — defense, justice, the goons in the TSA, national parks, even the Post Office — is paid for by borrowing. And most of the borrowing is paid for by the Federal Reserve printing cash... The Fed says we are just barely inflating (under 2%)...
LET ME SEE IF I HAVE THIS RIGHT
You are saying that the government is financing the national debt by printing money, and then passing that money off on the Federal Reserve banks by depositing it there, then the government is forcing the Federal Reserve banks to finance the national debt by buying government bonds with the same funny money the government just printed and passed. Is that about it? Holy Bernie Madoff Bat Man!
Then in order to delay inflation, the Federal Government has increased the number of dollars that the Federal Reserve banks are required to hold in reserve. Since a higher cash reserve requirement exerts downward pressure on the amount of money available for banks to loan, this results in unemployment, business failures, and makes it difficult for homeowners to borrow or refinance. This causes more homeowners to default and results in more underwater mortgages resulting even more forecloses resulting in less bank lending resulting in more forecloses.... Holy Ponzi scheme Flash Gordon
While all this self defeating BS is going on, Obama's Teleprompter is talking out of both sides of its mouth by imploring the Federal Reserve banks to lend more money to ordinary Americans, all the time its saying these things it knows it can't let it happen, because this will result in massive inflation. This conduct is not dumb, its criminal.
The real problem I have with Obama though is not Obama, it is what kind of disastrous Right or Left wing dictatorship will rise out of the ashes of the American economy once Obama can't damage it anylonger, and how many needless wars that dictatorship will fight to distract our attention away from our economic troubles and away from Obama's successor government, by keeping our attention focused on some nonexistent third world threat, like the Pacific Island of Fiji's "threat" to invade the Florida Keys.