If you want to understand why the federal government is so dependent on the FED, you only need look at interest rates. The average mortgage rate as of the writing of this article is about 7 percent, while the U.S. federal government pays an average of about 4.5 percent for its debt. Let’s compare the two by looking at a prospective borrower going to the bank for a loan.

With a mortgage, the bank thoroughly analyzes your financial situation; i.e. your assets, credit score, stability & size of income, and so on. Getting a mortgage approved is extremely unlikely if you don’t have a solid cushion of income that exceeds not only the prospective mortgage payments but your other bills. Assuming you clear those hurdles, you normally need to pay 20 percent down and allow the bank the right to repossess your house if you don’t pay. So, for this relatively safe bank investment, where income exceeds expenses and the loan is secured by a valuable asset worth 20 percent more than the loan, the bank charges 7 percent interest.

Now let’s consider the federal government. It’s tough to visualize math involving trillions, so let’s cut off some zeros to make comparison easier to an individual borrower. Imagine you go to the bank to obtain a new unsecured loan of $25,000. You currently have $370,000 in unsecured debt. You don’t have any assets like a house, stocks, 401(k), etc. You currently work two jobs to bring in $50,000 of income. Last year, your annual bills were $70,000. This year, your current bills are expected to be $75,000, which is why you need to borrow the extra $25k. What do you think bankers would say about giving a loan to such a person? Maybe after a bout of laughing, they’d politely tell them to GTFO. About the only ones who would loan you money in such a situation are named Guido and Vinny, with astronomically higher rates and a little bit harsher penalties for non-payment.

Instead, the federal government not only obtains fresh loans every year, it currently pays 4.5 percent, compared to the solid & safe mortgage borrower paying 7 percent! The power to tax isn’t a good enough explanation since there’s only so much the government can raise rates before it tanks the economy and changes behavior to the point it actually decreases revenue. This is why government is utterly dependent on the endless digital currency printing press of the FED. Adding to the money supply is the only way to make sure this completely broke-ass, undisciplined borrower can continue obtaining new loans.

Unfortunately, we know from history this is a recipe for disasterous inflation — Venezuela, Zimbabwe, Weimare Germany, Yugoslavia…the lesson never seems to get learned! The only hope to stop it is to get government spending under control and start actually paying down the national debt, not increasing it more every year. The fact leftist politicians and mainstream media are fighting every inch of the effort to trim fraud, waste, and corruption just shows they are enemies of the people. They’re enemies who are intentionally trying to bring down the United States as we know it, so they can build the latest fascist vision of a globalist Utopia.