In the end, the world’s central banks will simply ‘borrow’ SDRs from the IMF to keep the money printing scam going, but in the meantime, while all their grand plans fall around their ears as Mises said they would in 1912, they are desperate to appear like solid ‘conservative’ organisations rather than dubious highly-leveraged hedge funds.
Jim Rickards explains in a KWN article how the Federal Reserve is getting close to the edge on technical insolvency, at which point the IMF nuclear SDR button will be pressed.
You might also find it interesting the read how the U.S. money-go-round is currently constructed, as dissected by Philipp Bagus:
The Fed money-go-round method is slightly different from the current way the ECB money-go-round works:
In the U.S. system, the Fed ‘buys’ the bonds of the ‘private’ banks, initially purchased by these ‘private’ banks from the U.S. Treasury. In the ECB system, E.U. government bonds (such as Italian government bonds) are bought by ‘private’ banks (such as French ones) and are then used as collateral to gain Euro reserves from the ECB, with Italian bond collateral apparently being as good as German government collateral.
In the end, the technicalities are all moot of course.
Essentially, government prints money out of thin air on a continual basis, which costs it nothing, and then spends those printed monies on itself and its own self-aggrandisement. Every penny printed is a penny stolen from the rest of us. Indeed, with fractional reserve practices, every one pence printed is ten pence stolen from the rest of us.
The less dishonest way to do it would be to raise all spending via taxes. That way we would clearly see how much they are bilking us by, on a continual basis, to feather out their own grandiose salaries and pensions, with first class air fares on top, plus five-star hotels (where seven-star is unavailable), glass-and-steel bureaucrat palaces, and chauffeur-driven limousines to and from their endless world government meetings, at which all the mafiosi flap about trying to appear grand and less like organised criminals.
It’s nice work if you can get it. If your morality is so disgusting that you think living off stolen pelf makes you a good person.
That said, I don’t think even they are proud of themselves, because they can’t even be honest about their stealing, which is what would be apparent if they had to rely solely on tax income for spending outgoings.
It really is a rotten mess.
If there is a God, I hope she makes them all rot in hell for their continual thieving crimes against humanity.