Who pays for War in the US and How is it paid for?
The short answer is that the U.S. citizenry paid for the war
[WWI] and all wars since directly and indirectly. Directly through
their blood sweat and tears and taxes collected. Indirectly through
debasement of the currency and inflation via fractional reserve
banking's (Federal Reserve and affiliated banks) purchase of U.S.
Government Treasury Bonds to create money out of thin air. The
debasement of the currency and inflation are caused principally by
Federal Reserve Open Market Committee purchase of Treasury Bonds.
The Fed when it purchases U.S. T. Bonds will ALLWAYS have
sufficient funds in their accounts as this is where "money creation
from nothing" in point of fact becomes an accounting entry on the
banks books. In other words when the Treasury department deposits
the FED's check for the promise of the U.S. Citizens to pay back
the value of the bonds (remember a bond is the U.S. government’s
IOU on behalf of its people) the FED check will ALWAYS clear. The
banks love this because they now lend out 97 percent or more of the
money deposited at interest. Interest by the way that is largely
determined by the banks themselves as it is a function of how often
they engage in these usurious practices. Another reason banks love
the system is the banks cost of goods (i.e. money they lend) is
virtually ZERO which enables them on such goods an effective
infinite return on investment (graphically a vertical line). The
politicians love this because they now have a way of obligating the
people without their consent or knowledge. Since the money in
circulation is no longer redeemable in gold or silver the banks can
engage in these practices with very few understanding the true
costs and who is benefiting most substantially by these practices.
When currency was redeemable in gold the banks would have to have
enough gold to make good on their deposits. Without bill redemption
in gold or silver banks can lend more and more based on the
politicians more deeply obligating the people through the sale of
more and more bonds. The growth recently in the profits of the
financial sector and of the money supply is a reflection of these
policies and processes.