Share This Article
This may come as a shock to some, but the majority of the world’s wealth is in the hands of people in the United States where the current government is in the hands of a Republican majority. For instance, the federal government has the world’s largest debt, and the stock market is down roughly 12% from its peak. In fact, one of the largest ways for a company to grow is by creating jobs.
If that one government is in power, then it’s unlikely that any company would be able to grow. The reason why is because we have a different set of policies concerning our economy than people in countries like France, Japan, or the UK. We can have the same amount of money in the bank and still be at a disadvantage for so long.
If you look at the chart below, you can see that the U.S. is about 1.5 trillion dollars in debt. Most of that is what’s owed by the Federal Reserve, which is still the largest borrower on the planet. The total amount of debt in the country is about $9.7 trillion. If you add in the outstanding balance of all the bonds held by the Fed, you get a total of $12.4 trillion.
The problem is that this debt is not paid off. The Federal Reserve’s debt is about one hundred percent of GDP, while the total amount of debt held by the Fed is about one hundred percent of the nation’s GDP. This means the more debt that the Fed has, the more money that they have, and the more money that the government is able to borrow. It’s a vicious cycle.
The problem is that when the Fed fails, the government is unable to borrow. This is not because the government has to borrow money or because the government has to borrow it from the government. The problem is because the Fed does not pay for its own debt. This is because the Fed is in the business of lending money, and you cannot lend money to the government without borrowing it first.
When the US government defaulted on its debt, the Fed stepped in, and the Fed printed money to pay for the government’s debt. If the Fed had been a private company with a balance sheet, it would have had to reduce it’s debt so the company could pay for itself. As it is, the Fed has no balance sheet, and so it has to step in and buy the government’s debt with newly printed money.
The Fed is a creature of the US government. When the government is in financial distress and requires a bailout, the Fed steps in to provide a loan that will allow the government to continue functioning. As the Fed does not have a balance sheet, it needs to buy the government’s debt with newly printed money. If the Fed had been a private company with a balance sheet, it would have had to reduce its debt so it could pay for itself.
It’s funny because I’ve come to terms with the fact that the Fed is a creature of the US government. The Fed is a bank that lends money to the government. The Fed is not the government. So when the government is in financial distress and requires a bailout, the Fed steps in to provide a loan that will allow the government to continue functioning. I guess I’ve come to terms with this a little bit too well.
The Fed is essentially a private bank that lends money to the government and provides liquidity, or money to the government. This is not the same as the government providing the money directly. The government provides the money that the Fed lends. The Fed is basically a private bank that lends money to the government and guarantees the government’s ability to repay the loan.
The Fed does not guarantee that the loan will be repaid. In the case of the government, this means that the government can be bankrupt or even be taken over by foreign powers. This is why the government is in the position of being constantly borrowing money. It is only in the case of private banks that they will be in a position to lend money to the government, but this requires a lot of government intervention.
