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How to finance a war and not be affected at all financially or the power of a reserve currency!

My opinion

If I give YOU a US hundred dollar note, and ask you for a kilo of tomatoes, would you not give me the tomatoes and also the change?

Why?

Because in your MIND you feel certain that that piece of printed paper I give you, can be exchanged when you want, for some other goods you may need! What does that say? It says that YOU have confidence in that little piece of printed paper, which says amongst others things "In God we trust"!

I SUGGEST that the US Government with all the talk of a financial crisis, does what I say below – which could avoid any budgetary problems for that country!

1.  Print a lot of those hundred dollar notes, without anybody knowing about it!

2.  Send them all packed neatly in bundles to Afghanistan in those C 130 planes!

3.  Raise the salary of a private in the Afghan Army to 500 dollars per month to make them happy!

4.  Get all supplies like food etc, and even some of the military equipment from eitherPakistan or India or even from the Afghans themselves with those pieces of printed paper.

5.  Continue the war!

6.  When the Indians and Pakistanis want some other goods a little later on (a month later), they might send the printed paper to Korea or Japan or Germany for those goods they want as payment! Now all the above mentioned countries are happy to send their goods (at a profit mind you!) and maintain their living standards etc., and maintain the status quo!

7.  BUT what happens finally (after a few months or even a year) when SOME of those printed pieces of paper return to the shores of the US as NOT ALL OF IT EVER RETURNS FOR A LONG LONG TIME as people and countries SAVE in dollars and thus keep these printed pieces of paper! 

YES, now the US has to send some of ITS own goods for a PART of that money! BUT FOR A PERIOD OF MANY MONTHS the US HAS LIVED ON CREDIT, which it gives ITSELF without any collateral! WE ALL KNOW THAT IF YOU PRINT PIECES OF PAPER (MONEY) WITHOUT A COMMENSURATE INCREASE IN GOODS AND SERVICES IT LEADS TO INFLATION, AND THAT YOU SHOULD AVOID AS IT ERODES THE PURCHASING POWER OF YOUR MONEY!

8. SO what should the US Government do to avoid inflation and get some FREE goods?

9. ASK THE TREASURY TO BURN AN EQUIVALENT AMOUNT OF NOTES PRINTED IN 1. SO AS TO AVOID INFLATION!

10.   END RESULT – No INFLATION !  FREE Goods and a RICH life for a long time!

Here is what happens, when you DO this!

 1.  You can buy what you want without having any money!

2. Avoid INFLATION!

3. HAVE AN UNFAIR ADVANTAGE OVER YOUR COMPETITORS, who have a restricted amount of money which is mirrored in the profit and loss account of the country concerned, in its BALANCE SHEET!

4. HOWEVER If you go on doing this almost perpetually, you are HOAXING the rest of the world, and getting richer at the expense of the blood and sweat of the poor who send you tomatoes for pieces of paper!  However THIS CANNOT GO ON AND ON FOREVER!

THE DISCOVERY OF THIS BY SOME OF THE OTHER COUNTRIES HAS LEAD TO THE FINANCIAL CRISIS WE HAVE HEARD ABOUT IN THE WORLD PRESS!

Remember however, that there IS somebody watching over all this, and when there is no TRUST it may all explode!

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