The Creation Of Money Has Been Made Deliberately Confusing To Hide It's Criminality
1) Private Central Bank Fiat Money Creation = Inflation
The money creation process is fairly similar in most countries since the same banking cartel has controlling influence over all the worlds central banks through various means. Since money creation has been seized from the nation state during history through war, political (or legislative) coups and intimidation by the powerful banksters, the banksters now create all the worlds money FOR INTEREST instead of for free, meaning they earn a few cents on every Dollar, Pound Sterling, Rand or Euro printed purely for the privileged of having forcibly removed this right at gunpoint from the taxpayers.
For the history on how the banking dynasties pulled this off, click on the link below:
Because every unit of currency created is born with interest attached which exceeds GDP growth and trade deficits, the money can never be repaid and an increasingly higher amount of money needs to be created each year to service the interest on the debt owed by the taxpayer to the banksters. So each year more currency growth occurs than the growth occurring in any economies goods and services or GDP, those extra Dollars, Euro's or Rand's therefore steal value from the existing pool of currency in circulation, this is known as INFLATION. When the banks first spend the new money or QE, it still has it's original value because it's freshly printed, but the market dilutes all that extra cash in circulation to bring it in line with the real world goods and services that exist as an economic law, so the dilution of its value is only experienced by the time it ends up with the man on the street (in the interim the banks have invested it in the financial markets making huge amounts of INTEREST or RETURN on the free money while the loss is passed on to the same taxpayers who then also have to bail them out when they fail. This is known as the TOO BIG TO FAIL racket. If we were still in a capitalist society they would FAIL BECAUSE THEY'RE TO BIG.
The destruction of this element of FREE-MARKET CAPITALISM is not a widely appreciated fact, but those who understand it will tell you that we now live in a CRONY CAPITALIST society, which is just a nice way of dressing up anything from a Plutocracy/Oligarchy to fascism.
The loss in the currency value caused by currency printing by the private banks is the best definition of inflation but many economists confuse INVESTOR SENTIMENT (in the ROE markets BETWEEN currencies - all of which lose values at different rates depending on which nations the banksters have targeted with currency wars like the BRICS nations, and which nations they are subsidizing with their parasite scheme, such as the US dollar.
Investor sentiment is usually the only thing that is caused in ROE fluctuations by corruption from the ANC or any national government. In reality this is is only a perception factor and just like any stock share it can fluctuate but it does not affect the economic fundamental value of the currency. Broadly speaking the central banks and international bankster corruption is what ultimately devalues a currency as we saw earlier this year with the currencies of BRAZIL, RUSSIA, INDIA, CHINA and SOUTH AFRICA (BRICS)
2) Bond Buying Starts The Process
The Central Bank issues an IOU called a Treasury Bond, or T-Bond, meaning the current government makes up the interest it owes the banksters by borrowing more and guarantees it with taxation in order to make T-Bonds secure AAA rated products, secured by the nations tax via the children and grandchildren of the current taxpayers. THIS IS HOW NATIONAL DEBT COMES INTO BEING. It is not owed to other governments, it is owed to the banks and it always increases. Over time all these Fiat money Ponzi Schemes collapse meaning interest rates have to get lower and lower and each genration gets poorer and poorer, ending in austerity and exponential national debt increases. President Obama has doubled the national debt, IE he had to create as much new money as the entire history or the USA just to keep the system running.
To Make matters worse, he in effect created all that money to BAIL OUT THE BANKS AND WALL STREET, USING MORE TAXPAYER MONEY. This is a very effective method of WEALTH TRANSFER (moving money from the taxpayer to the elite via taxation through monetary policy and also by spending tax on war to profit the elites in the Military Industrial Complex defense contractors) But wealth transfer is not good for an economy because of the loss of velocity of money. This is why the system is breaking down.