BitcoinMendocino on Nostr: We're in a bit of a pickle. We see it each time we buy something. The 'price' of ...

We're in a bit of a pickle. We see it each time we buy something. The 'price' of things appears to be going up. Actually the purchasing power of our dollars is going down.

As a nation we've just crossed $34.5T in debt. If you write that number out it looks like this: $34,500,000,000,000. This isn't money, it's debt that will never be repaid. It had to be borrowed into existence. Borrowed from whom? People willing to purchase (with other debt denominated currency) Treasury Bonds which have to be paid back with interest. The currency to pay out on these bonds is also printed into existence by the Federal Reserve as they buy yet more Treasury Bonds. And as all this currency comes into existence it makes each unit worth less and so we have inflation and the 'price' of things appears to be going up. But it's actually the purchasing power of our currency going down.