Many business people and financial managers aren’t conscious of the term ‘DIP’ Financing – which stands for ‘Debtor in Possession’ financing. So what does the federal government get out of all of this? Control over the banking system. The one purpose we’ve been able to pay for FDR’s New Deal and Johnson’s Nice Society is as a result of the setup of the Fed allows the federal government to monetize the federal deficit. Very like coin clipping kings, governments at present also get a profit after they inflate the cash supply. For a time the brand new money circulates on the worth of the previous cash supply. That’s how they pay for all of their packages. The issue is that the worth of foreign money falls. Thus they need to create more credit to pay for all of these programs, which causes monetary value to fall further, which necessitates an additional increase in the cash provide and now we’re stuck in a downward spiral.
And guess what of us! As a result of all this economic voodoo failed, you the taxpayer have to bail out the banks who made all the money before they failed. The taxpayer can pay trillions …