Most Americans believe–quite correctly–that the U.S. government is spending recklessly and that its central bank, the Federal Reserve, is printing currency recklessly to prop up U.S. government finances. However, almost all of the other governments of the world are doing the same thing–and most of them are printing money even faster than the U.S. Federal Reserve.
Central banking allows governments to conceal their fiscal recklessness by growing the size of government without appearing to directly tax their populations. (The increased taxes will of course be paid by future generations.) Governments love Keynsian economics and central banking because such policies and institutions allow governments to appear more fiscally sound than they are. Astoundingly, the world’s central banks have cut interest rates an unbelievable 558 times since the collapse of 2008, and most of the world’s currencies are in a continuous tailspin, along with the finances of the world’s governments.
Today not a single major world currency is backed with anything other than paper. And the world’s governments are so fiscally irresponsible that the dollar is gaining rapidly against most currencies, such as the Euro. See the Washington Post story here.
