The biggest criminal is the Federal Reserve ( a private bank)... printing money from thin air, then loaning to the government with interests. Since the creation of the FED... the USD has lost over 98% in value.... gold was $20 USD per ounce at one time (can trade $20 USD for gold in a bank). Now $1,300 plus per ounce (banks will laugh at you if you ask if they have gold).
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Every 40 years or so the US defaults, the US coming off the gold standard in 1971 was one of the US great defaults and the US should have defaulted during the 2008 crisis, they didn't and now the crisis is going to be so much deeper.
This is why China, Russia and India are buying up huge reserves of gold, China is one of the largest miners but not sellers, they are keeping it all at home; they all know what's coming. The US economy needs to add several dollars of debt for every dollar of growth because they have exported their manufacturing base away, they have exported their money making ability and all this is at record low interest rates.
What's going to happen when interest rates rise? They can't balance the books at 0% how are they going to do it at 3% or 5%? I am going long Popcorn as this unfolds over the next few years, it's going to be fun to watch.
Appreciate your comments but I want to adjust something you wrote that I think get said too often and people start believing.
The Fed cannot just print money in whatever amounts it wants. Money policy is highly regulated and controlled by each country that uses a Fed system.
The amount of money in circulation is based on a series of factors and goes up and down. Countries cannot just continue to print money without consequences. There must be a balance or the country risks losing confidence and its interest payments go up considerably. We have seen what happens when they do, their financial systems collapse. Look at Zimbabwe and what is happening in Venezuela right now.
In terms of the US and other countries being off the gold standard, they were able to do this because they had been paying their bills for 150 years or more and never missed a payment. In other words, they built up credit worthiness. I am definitely not a fan at all and it sucks. But their position was that they gained this option to get “credit”. There was simply no need to keep stockpiling gold when they could just use credit instead. At the time the US was in a depression and needed more cash in the system so they made the jump. The consequences of this has not been good for all of us primarily because individuals and corporations now compete with countries for available credit and of course the skyrocketing debt (more on that later).
To be clear, yes printing money can and most often will cause inflation (although it didn’t these last 5 years strangely). But the biggest causes of inflation lately is supply and demand and tech advances. Both push up prices continuously.
In terms of why getting off the gold standard is really a problem is that it allows the US to borrow money too easily. The US has leveraged the future of young people for credit today. And like anyone who gets easy credit, they cannot stop. The debt will be $20 trillion dollars this year.
I am only offering these points because I too often see people making these statements and it only confuses things. The Fed is terrible but even if they were a completely public owned entity (which is the case with many Feds), they would still suck. We definitely need a better system. Thanks.
https://www.thebalance.com/causes-of-inflation-3-real-reasons-for-rising-prices-3306094