Quote: LeighGionaire "The links you provide kind of back up my claims that under the current debt based money system somebody somewhere always has to be going into further debt to keep the whole system functioning. If new money has to be continually spent into the economy why doesn't a government just create this new money themselves instead of borrowing debt based credit money from banks at interest when the same banks create this credit out if thin air?'"
It does. What do you think quantitative easing is all about? The new money created that is used in quantitative easing is used to buy government bonds off banks who currently hold them. The price of the bonds goes up because of the increased demand and so the profit made by the banks on the sale of the bonds is new money they can lend.
Normally printing money is inflationary but it rarely is in a recession as explained by the second of the two links I posted.
