China buys up quite a bit of US debt.
That US debt generates interest for them.
Interest payments require more printing of currency. More printing of currency devalues each dollar already out there in circulation.
Every dollar in circulation is borrowed into circulation.
The process is called "monetization of debt".
Monetization of debt: I've heard this term alot recently. The TV commentators on the economy (CNN, for example) will bring it up sometimes. Until now, I've had no chance to understand what these folks were even talking about.
WAY over my head!
When I've made the effort to try and pick up on what any so-called experts were trying to convey, it'd feel like I was forced to *intuit* what they'd meant, and anyway, what they'd be saying would typically end with predictions that sounded like, "Thus and so kind of *doom and gloom* WILL happen SHOULD this trend continue" and so on....and then next, there might follow a tea party politician or a PAUL-inspired advocate that'd issue yet another call for banishing the fed altogether because of Bernanke's (and fed board) autonomy.
Q: Not possible for there to be a rise in the minimum wage that doesn't sting the economy for all that long? As things stand, the money certainly *exists* and does hold x-value, right? Only thing is, is that at present, that value is being passed along 'elsewhere'--to anywhere except into the pockets (wages) of lower class workers, so...
Keep it coming. I appreciate very much what you're providing.
One Love, and PEACE