The World Bank

What can be worse than what we have talked about? If the government can create as much money as it wants, meanwhile producing inflation how far can it go? Will, or can money inflate forever? There has been talk lately of deflation is that possible with money being printed, and or created out of nothing?
Isn’t it odd that we are 20 trillion dollars in debt, but the government can create as much money as it wants? There must be something bad that would happen if they just printed 20 trillion dollars or they would have done it by now. Ben Bernanke, the Federal Reserve Chairman, spoke of deflation several years ago and creating QE 1, 2, and 3. He created a trillion each time, he also said that he would “drop money from helicopters if he had to” to prevent deflation what is he talking about?
Deflation is the opposite of inflation, the value of the dollar rises which mean prices go down. Is this a bad thing? Why would the Fed not want the value to rise? It’s a game played by the Fed they must convince people that they know what they are doing and with slide of hand they have been very successful for many years.
There has to be consequences to printing money and it can’t go on forever, in fact it couldn’t go on as long as it did if it wasn’t for the World Bank. That’s right the World Bank if you think that is made up or it doesn’t exist just look it up.
In comes the World Bank. In the world market there was something called the gold standard this was used to compare currencies. In 1944 there was a meeting in Bretton Woods, New Hampshire to discuss how to completely break away from the gold standard. There are several different currencies in the world and they rise and fall by inflation and deflation and the way it was measured was through the gold standard. The dollar was losing value quickly and because of similar practices of the Fed around the world at other central banks other currencies were devaluing in the same manner. What the Fed realized was it can’t make money out of nothing with no consequences forever especially compared to the gold standard. The outcome of this meeting in Bretton Woods was to create the International Monetary Fund and the World Bank.
The International Monetary Fund can be explained this way. The gold standard had to go away before the dollar sunk in value compared to the gold standard and ran away with hyper-inflation. Any government that created money the way the U.S. had couldn’t contain the problem of hyper-inflation. Hyper-inflation coupled with the kind of debt our government has would always lead to a Banana Republic and eventual collapse of its economy. The Weimar republic in Germany had this problem and its economy collapsed they tried to prevent it but nothing could be done. There are stories told of the sudden collapse where one day it was ok and the next you couldn’t buy a loaf of bread for a million Reichsmarks. So, the Fed had to figure out a way around this, and they did. If the gold standard went away something had to take its place, in comes the Fed. What if the American currency was the standard across the world? What an idea! And if that’s the case couldn’t they also force other countries to buy that currency and use it? And the world bought it, the Federal Reserve Note became the reserve currency of the world. This meant that any international trade had to be done in U.S. dollars. That’s right it was genius. Why? Because even though our dollar would have devalued on the world market now it increased in value. Certainly, other countries would buy stuff form one another and when they did they had to have U.S. currency, creating value in the dollar.
Imagine you created your own currency, counterfeit money, and you wanted to launder it and add value to it or at least mix it in with other money to make it appear to have value. What if you could force it’s use. That would help, if someone had to use it, the value would be enormous. That is just what happened, and it has put a band aid on the problem of inflation and the threat of collapse to the U.S. dollar. But as I said it’s only a band aid and it can’t go on forever. Eventually the bubble will burst, and the chickens will come home to roost, but perhaps first, the Fed will find another band aid.