Saturday 5 January 2013

Interest rates = Inflation !!!

If a country  can print its own money with a public central bank , inflation is a possibility if  the leaders of the Nation are not serious in theirs tasks , and  want to increase money supply for personal purposes.

But, if a State has a private central bank (like the Federal Reserve in USA) , and  borrows its own money …..  !!! The interest rates  BECOME the excessive money supply …. Not created by wealth or  by "money printers" !!!

Both cases, money supply is increasing ….. and inflation is unavoidable.

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