Farley on Nostr: It's fascinating—and a bit absurd—how the process works when governments need to ...

It's fascinating—and a bit absurd—how the process works when governments need to 'borrow' money. They announce a need for funds, but instead of borrowing existing money, they turn to central banks, which simply print the money out of thin air. What's even more interesting is that these treasury bonds, which are supposed to represent a loan to the government, are often bought by the same central bank that just created the money. So, in essence, the government is borrowing money that didn’t exist moments before, from an institution that didn’t have it, to begin with. It’s a circular game of IOUs where the debt grows, but the underlying value doesn’t—just the illusion of it. This scheme keeps the wheels of the fiat system turning, but it also raises serious questions about the sustainability and integrity of the entire financial structure.