Money

Digital Printing

Equals

INFLATION!

DYI:  Contrary to what most people believe the Federal Reserve is the handmaiden to Congress’ and Presidents when they run deficits.  Money printing is necessary (purchasing primarily Treasury securities) in order to maintain or reduce interest rates from the flood of Treasuries into the market place.  Of course if this money creation is greater than any increases in efficiency higher prices – INFLATION – will end up being the end result.

Congress’ and Presidents along with the American public need to understand that government spending has it limits and those limits were past decades ago.  This has created the current national debt monster that will require fiscal discipline along with tax increases along the way in order to reduce significantly the Federal Reserves money printing.  IMO a Balanced Budget Amendment to the Constitution is what will be required to reign in their spending.

Till Next Time!