How have wars been funded in the US since World War 1?

Answer 1

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.