Posted on 03/31/2009 11:22:56 PM PDT by LanaTurnerOverdrive
My first post (long time member) is a vanity. My apologies. I have heard from multiple sources that we are printing a large percentage of the current stimulus/bailout money. Does anyone have a link, preferrably a .gov site, that can give me the real data on how much cash is being printed specifically for stimulus or bailout purposes?
I don’t have a link, but have read the same.
Inflation follows.
Technically, we aren’t actually “printing” much money, or hard currency. The Fed just changes an entry on its balance sheet and buys securities, generally Treasuries, (although that’s changed recently) with money it creates out of thin air. But anyway here’s a look at the Fed’s balance sheet.
http://www.econbrowser.com/archives/2009/03/the_feds_new_ba.html
ever heard of the nifty invention that helped kick off the Renaissance called the “printing press”?
But I think more specifically - what backs those dollars. Well, you see... the US Government borrows money from the Federal Reserve, a semi-private, yet government funded business that basically has control of our money supply.
But it is the Federal Government who actually prints the money that the same-said government borrows from the Federal Reserve.
And then the Federal Government pays interest to the Federal Reserve to borrow said cash.
And... anyone’s head spinning yet?
Your grandchildren.
Anyhow within 48 hours after crash landing they up and decide that leaves will be their currency for their new economy.
Obama's plan sorta resembles that.
This may help, on the right side there is an email address that could be a good resource too
Chris Carey, Editor
chris@sharesleuth.com
Tips & Story Ideas
tips@sharesleuth.com
HEY!!! Who got into the box and took all the money?!?
I live in Massachusetts, so I have a lot of opportunity to explain to people that there are only three places our government can get money for anything:
1.) Tax money.
2.) Borrow money.
3.) Print money.
All three have their place. All three are bad if overused. All three are catastrophic if overused at the same time in conjunction with unrestrained spending.
As is happening now.
NOTE: Libtards will sometimes insist that the government can use our taxed money to invest in something that will make money, and it is all I can do to keep from laughing in their face. I then have to ask them for an example of ANY government run entity, investment or project that EVER produced more money than it took in.
Actually more like the other way around.
More "money" is created by electronic bank transfer than is actually printed on paper.
But then due to all that "money" in banks, the Fed is "authorized" to print more.
So yes, we still do get new bills, but the whale's portion of new "money" is still done via electronic "transfers" from noplace to the banks.
Naturally, all this new "money" has a deliterious effect on whatever money is already existing.
So the value of all our money declines. That is the definition of inflation.
What follows is price increases, which is a phony government way of defining inflation. Presto! Through the majic of re-defining words, now we only get inflation when prices go up.
Which is why they've been able to get away with inflating our money for so many years, it's because largely prices have remained relatively stable, even though we have really been in double-digit inflation for years.
Now the chickens come home to roost.
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