Central Banks Create Money Out Of Nowhere

BALTIMORE, MARYLAND – Last week, while all eyes were on the impeachment show, the feds increased the nation’s debt by about $20 billion.

Who will pay for it? When? How? No one asked.

During the British election of 2017, Theresa May famously said: “there is no magic money tree.” But both the Federal Reserve and the U.S. government are shaking the hell out of something…

And America’s president thinks they should shake it even harder. He wants “some of that money” too.

Magic Money Tree

We were up in New York for the first part of last week. You need a magic money tree on the Upper East Side. Every time we paid a bill, we were shocked. A modest hotel room for two nights – $1,400. Breakfast for two – $69. A 10-minute cab ride – $29.

This weekend we spent back on the family farm, cutting firewood. We’ve got three old chainsaws. You need three because two of them usually won’t work. Either the chain hits a stone or it just won’t start. The trouble increases when you’re away for long periods of time; when you get back, you find dead batteries, dull blades, and missing tools.

Our old ’52 Chevy pickup wouldn’t start either. We charged the battery and spun the engine over… but it didn’t seem to be getting any gas.

One of the nice things about these old machines is that you can tinker with them. The truck has been sitting for a long time with its front higher than the rear… most likely, the gas just drained out of the lines. We’re going to turn it around, so the gas can run downhill to the motor. We’ll let you know if that works.

Extreme Greed

As technology advances, it gets further and further beyond our ken. We can take a carburetor apart and usually fix it. We have no idea what to do with electronic ignition.

But modern technology clearly works, even if we don’t know-how. So we’re tempted to think that modern economics works too. And maybe we shouldn’t laugh when we hear that someone is studying “post-structuralist queer theory.”

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