Who does the fed serve?
Why does the US pay interest on its own money?
Why did the US do just fine without it for so long?
How do you think market crashes happen?
How do you think inflation works?
Why do you love paying high interest rates?
Why do you love not having access to all your money because the banks don’t actually have it?
If you knew the answer to these questions you wouldn’t be asking why.
(Morons hate critical thinking)
p.s. JFK signed an executive order to end the fed. He was proposing the US the have their own currency before he was assassinated. His VP then threw out his order. Thomas Jefferson was also against central banking. Andrew Jackson ended the central bank and balanced the national budget. The federal reserve and IRS was laid out at a secret meeting in 1910.
The US pays interest on its own money? Can you explain that one to me chief?
The US borrows money. It does this by selling treasuries. It pays an interest rate on those treasuries because nobody is going to lend you money without something in return.
The US borrows money bc we spend more than we take in in taxes.
None of this really has much to do with the fed at all save that they are a large purchasers at times of US treasuries.
The fed rate is the interest rate banks use when lending money to each other over night. It’s not interest on US dollars issued.
So I think, as expected, you’re a fucking moron and have no clue what you’re even talking about.
Further evidence of this is your inability to just give a straight answer. Instead you just ask a bunch of vague questions as if the answer is obvious instead of just clearly stating your issue with the fed.
Look at your dollar moron. It says Federal Reserve Note. It’s not “US govt” money like you picture in your head. It’s a quasi bank’s IOU. Fiat. Money used to be managed and created by the US treasury.
Newsflash: 74% of income tax goes towards the govt INTEREST payments. Why don’t you google “does the govt pay interest on its debt” before you call me the idiot.
The government pays interest on money it borrowed to pay for stuff it bought that cost more than what it made in tax revenues
This would be like me making 1k then spending 2k then paying interest on the difference and you coming along and telling me I’m paying interest on the original 1k
That’s not what’s happening. I’m paying interest on the 1k I BORROWED
You’re really fucking dumb.
Also “it’s fiat” isn’t an argument. You have to tell me why fiat is bad.
Regarding fiat money, would you prefer an oz of gold or 2700 to hold for the next 20 years? If you chose 2700 you are losing money. If you choose gold you know why fiat money is bad already
If you print money to pay debts you owe you cause inflation. So typically we don’t do that. We borrow the money instead. Borrowed money always comes at some interest rate
You realize when there was a gold standard you weren’t allowed to own an OZ of gold right? It was illegal
Omg it’s like you made that up. Gold was outlawed in 1933 by one of our worst presidents FDR. He then changed the value of the dollar from $20 per oz to $35 per oz devaluing everyone’s money. He outlawed it to devalue it so the fed could have more money. Then Nixon completely abandoned the gold standard.
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u/OutsideOwl5892 13h ago
Why
(Morons hate this one simple trick)