>>512782251
The creation of private credit is a far larger driver of inflation than anything the Federal Reserve does -- and the Federal Reserve obviously has problems.
But -- pay attention here -- every single country creates money out of nothing. This is the process by which money is injected into the economy.
Conservatives are just really, really, really stupid and don't understand this. They think if they magically went back to a gold standard what would happen is everyone would be rich and buying consumer goods for pennies and nickels again. In reality what would happen is the people who already control gold supplies (the already wealthy) would have money that never degrades or rusts and everyone else with nothing or who produces time-sensitive goods, would be under tremendous pressure to dump their products for whatever scraps the gold-holders would grant them.
It's good to remember that this country used be a on a gold and silver standard. Then a bunch of working class upstarts out in Nevada started striking huge veins of silver and suddenly the goldbugs dropped the silver standard under the argument of "inflation". This is what "bi-metallism" was about during one of William Jennings Bryan's failed presidential bids. Goldbugs don't really advertise that part of their history.
So when we examine the economic advances made by states like Italy, Japan, Germany, China, etc. we need to evaluate what role gold or silver played in them -- and the answer is pretty much zero role, outside of whatever industrial uses gold has in electronics and microprocessors.
So all states create money and they spend that money unit into existence. Taxes pull money out of the economy and destroy it. Paying off debt destroys money, with the interest being what remains leftover in the supply. Obviously low or no interest creates less money when debt is created.
But the debt has to structurally exist because of the iron logic of double entry book keeping.