I have always wondered, how the monetary system works, e.g. They say we have to pay this stimulus money back. How is that done..who do we pay it back to etc. I saw the most sticky point of this explained on TV recently. I shared this with my friends on our msg board (That's why we go to a private board, so we can discuss serious issues without all the political, nitpicking and mud slinging). But I don't mind sharing this with you here because there are lots of good people here on this board. All the "know it all's" who will say..everyone knows that..are on my ignore list..but NO, EVERYONE DOESN'T KNOW IT..Nobody's ever been able to explain it to me.

The older people on the board will remember that During Jimmy Carter's admin..interest rates got up to 22%. With that in mind..here's how it works.

The fed cranks up the printing presses and pours billions into the market (In this case trillions)..to stimulate the economy. Right now, that money is clogged up by the banks, but eventually it will break through to the street. That's why we're buying gold and silver because when it does hit the street, we will have too many dollars (everybody's rich) chasing too few products and we will have hyper inflation..How does 15 dollar gasoline sound? We can't live like that. The fed must pull all that excess dollar supply back. How do they do it..RAISE INTEREST RATES..Under Carter, 22%, this time perhaps as high as 35%..It works like this..You buy a car (I'll keep figures round), and the bank loans you 10 thousand at 35%..you must pay back an extra 3 thousand 5 hundred..That extra money goes to the fed who will then destroy it..This operation will run until the fed has pulled back all those excess dollars and destroyed them.

That points out several things which should be obvious. Those with money, will fare just fine because they will be getting a high return on their cash..just put it in the bank and watch the interest pour in.
But those people who don't have money..will be the ones paying through the nose..DON'T BE AMONG THEM!

That's the rudimentary way it works. I'm sharing this with you so you can think about it, and make your own plans/decisions on how to deal with it...IT'S COMING/Juan