Saturday, February 21, 2015

How the T&T Central Bank Expands The Money Supply and Devalues The $TT

In order to obscure the role of the Trinidad & Tobago Central Bank (TTCB) in stealing wealth via legalized counterfeiting the TTCB like other central banks engage in a scheme called "Open Market Operations." 

The term itself is a euphemism as it is neither open nor a market phenomenon; rather its a technique that furthers increased government spending at the expense of the unsuspecting working class.

On one hand, to directly fund government spending the TTCB sells government bonds. On the other hand, the TTCB subsequently buys back government bonds by increasing Commercial Bank balances electronically held at the Central Bank as payment. The money supply therefore expands and causes inflation.