By Obedgiu Samuel
What is the real reason behind the U.S Federal reserve’s printing of money dollars during covid 19? Read on to find out ??
Jerome Powell just said this evening that there is no limit to how large the Federal reserve’s balance sheet can grow, and that the Fed can inflate the money supply (print more money) endlessly without ever having to worry about inflation resulting in rising consumer prices.
Famous last words. The fact that we Africans dont enjoy fully sovereign currencies, gives Americans confidence that we shall still need their dollars to absorb the inflation that’s will export to us.
We don’t trade in our Currencies Because they are considered to lose value. This is very interesting. You should note that the Dollar has lost 98% of it’s value against gold since the Federal reserve was founded in 1913
Even though the U.S doesn’t have the money, if it needs goods from other countries, it just had to print dollars to get those goods, because they have a “hard currency”
Even as personal spending in the U.S collapsed by a record 13.6% in April, the trade deficit in goods swelled by over 7% to $69.7 billion. The U.S exports what the Federal reserve prints to import what others produce. A dollar crash is coming, followed by surging consumer prices & interest rates.
Much as the Federal Reserve is a creature of U.S Federal statute, it’s the only federal institution with private shareholders in it. Under section 7 of the Federal Reserve Act, 1913, which stipulates the division of earnings (dividends & surplus funds of the reserve bank), it states that “the stockholders (known as shareholders in Uganda corporate law) receive an annual dividend of 6% paid in capital stock.”
History has it that the original shares in 1913 the Federal Reserve were issued to the biggest banks in the U.S. at the time but because of mergers & acquisitions over the years, it’s hard to trace who owns the shares in the federal reserve now.
Consider this to be one of the U.S many closely guarded over 100 year secret. My guess it that the owners are those banks that are the biggest in the U.S. the proceeds of printing dollars that are shipped around the world goes to these private banks.
When money printed generates a profit, called seigniorage, part of it goes to these private shareholders. Any world leader that has messed up with these guys profits by denying entry of dollars has been demonized as evil by the U.S establishment.
Ask Gadhafi or Hugo Chavez. Museveni knows not risk. That’s why he’s not signing the land lord tenant bill that out laws payment of rent in dollars.