As Rates Race to Zero, Printing Presses Gear Up

CNBC ^ | December 16th | Antonia Oprita

[Halfmanhalfamazing]

UNBELIEVABLE!!!! We're in the process of turning ourselves into zimbabwe.

[Jeff Head]

OBAMA, THE STOCK MARKET, AND ENERGY

[Mark was here]

Devaluing the Dollar, hurts those with the fewest the most. Not a good policy for anyone.

[Obadiah]

Hyperinflation here we come! Break out the wheelbarrows, boys.

[Pessimist]

Yup.

Problem is, what’s left as a safe haven?

Gold in hand? Not exactly liquid down at the five and dime...

[autumnraine]

Can someone explain to me what this means? In simple terms because I’m coming to grips with the fact that I am a moron on this economic mess.

[Graybeard58]

"And our assumption is that there is more of this to come

That would be my assumption too.

[Brett66]

Food.....

[Halfmanhalfamazing]

Zimbabwe prints money in order to buy away it’s problems.

Money is subject to the same laws of supply and demand that any thing else is.

What it means is that the more money they print, the more worthless it becomes.

[Don Corleone]

The Dollar is literally not worth the paper its printed on!

[Aquinasfan]

Is there any alternative? According to Milton Friedman, the single greatest cause of the Great Depression was the contraction of the money supply, when the money supply should have been expanded.

Of course, this is simply a symptom of a greater problem, which is out-of-control government spending. That's what we should be talking about. And the drive-bys are talking about everything-else-but.

Pathetic.

[umgud]

Break out the wheelbarrows, boys.

I'll use my first wheelbarrow to pay off my house, that ought to make the bank happy.

[Moonman62]

Yet bond yields keep going down.

[autumnraine]

That’s kind of what I figured. I told my friend yesterday if they print two dollars, then the value of one dollar will be two. Or something like that. I think I have it in my head, I just can’t explain it very well.

I do remember seeing a pile of German money that was worth one American dollar. That’s the only thing I can relate this to.

[Halfmanhalfamazing]

Most of what's going on doesn't take a genious to figure out.(no, I'm not talking down to you) The problem is that the media always try to make it seem more complex than it really is.

The Zimbabwean Dollar

On 28 July 2007, it was reported that Mugabe has said that Zimbabwe will go on printing money if there is not enough for underfunded municipal projects.

This is a picture of Zimbabwe's $100 billion banknote with the number of eggs it could purchase on its release date.

The money supply in Zimbabwe as of June 2008 was more than 900 Quadrillion.

[Heartland Mom]

All unnecessary spending must stop immediately - including billions we are sending to foreign countries. No more pork. No more give aways. Tighten our government’s economic belt and work our way through this.

[Halfmanhalfamazing]

Yes, there are many, many nations in the world who have decided to cut their taxes instead.

If you have a sick economy, you fix the economy. Tax cuts are one way to do such a thing.

China, France, Sweden, Germany, and many other places are doing just that.

You don’t just print money, that doesn’t solve anything! It only creates hyperinflation.

[Tanniker Smith]

We need a federal tax and FICA holiday for, say, two months. Automatically put between 7 and 30 percent back in our pockets.

Had they done this NOW (ie, December), the rich people wouldn't have gotten a break on the FICA because they've already maxed out.

[Halfmanhalfamazing]

You have it about right.

I often times bring out the old stories from the weimar republic as an example. People with wheelbarrows full of money just to buy one or two loaves of bread.

[autumnraine]

100 Billion dollars for three eggs. Sounds about right.

Wow.