>>519486056
>printing money is what causes inflation
Expansion of Credit is what causes inflation and backed by debt on a ledger out in the ethos.
So wtf does that mean? Take out your credit card, go spend it. The credit card doesn't have a vault with any collateral backing that money (small loan) you just spent, nope it was just written on a ledger that you owe the CC company that amount you spend with interest. Spending on that credit card just created new money (inflationary), paying it back is (Deflationary) 0 net money was created in
this entire process. BUT you owe them interest on that credit. So they get paid interest on "Money" they get to lend out of thin air. Banks are now the same where they have 0 reserve requirements, nothing backing the money they lent into existence.
So why is this bad? imagine giving everyone a credit card with $1million, they all spend it the next day, prices skyrocket because demand goes out the wazoo (outsiders think we're super rich but it was all based on debt, the illusion of wealth), all that credit created money is inflationary. BUT, they all have to pay it back (this is deflationary) with INTEREST! during this process money is quite literally destroyed as net money creation returns to 0...but here's the problem. With all that money that was lent out at interest, what if there's not enough money in existence to cover the interest? now there's negative money in the system, fiat value goes to infinity, division by zero, ERROR, LIQUIDITY CRISIS!!!
So big daddy Gov with Visa black card conducts bailouts, replenishes "Base money" off the backs of US Citizens (National debt), Federal Reserve can also act as THE SUPER DUPER CREDIT CARD COMPANY and issue credit to their "Buddies" and just throw it all onto their "Imaginary balance sheet". All this accumation of base money results in inflation and propping up the BIG CLUB.
https://www.youtube.com/watch?v=5IsSpAOD6K8&list=RD5IsSpAOD6K8&start_radio=1