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Chainfire

(17,757 posts)
25. What we are facing now is not 2009.
Wed Apr 22, 2020, 04:03 PM
Apr 2020

The value of money since 2009 has dropped by about 22%.

Do you think we can print trillions of dollars and not devalue the money? If so, then why haven't we been printing that kind of money all along. Hell, we could just print ship loads of the stuff and pay for all of our imports. We could be debt free for the cost of a few thousand pine trees and a few truckloads of ink. The government could just hand it out the stuff with the flyers in your mail box. We could all be millionaires. (and we may yet)

There is a certain amount of real wealth in our nation. We calculate the value of that real wealth in dollars. Think of the real wealth as a apple pie, with currency representing individual pieces of the pie. If you start off dividing the pie into four equal pieces, you can get a belly ache from eating one piece. If you cut the same pie into 24 pieces, you still have "a piece" of the same size whole pie, but if you eat one, you are going to still be hungry.

If you print money, willy-nilly, there is going to be a hell of a lot more money, but no more real wealth. How does that affect the value of the money? When you are spending trillions of dollars, not out of your rainy day savings account, but by printing money, you have to affect the value. The government is, in effect, counterfeiting money on a grand scale. If you started counterfeiting money it would cause the same effect on the economy, that is why they would send the Treasury boys after you. It is not the money that is valuable, it is what it represents.

Just out of curiosity, what do you think is going to happen to the price of pork and chicken over the next few months as the supply drops? Do you think that that widget you bought, that came from China, in Jan. is going to be cheaper or more expensive in the following months?

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FDR's government funded its way out of the Great Depression, but The Velveteen Ocelot Apr 2020 #1
FDR raised taxes on the wealthy. Now they don't want to hurt those snow flakes. LiberalArkie Apr 2020 #6
Sure they can, take the Social Security trust fund and the Post Office pension fund. LiberalArkie Apr 2020 #2
It can't, because it keeps giving the money to the wrong people and entities while stiffing those tblue37 Apr 2020 #3
Great question. T-bills will be key empedocles Apr 2020 #4
"How Long? Not Long." - MLK, Jr. MineralMan Apr 2020 #5
Were Trillions in already pissed down the drain by the FED. Historic NY Apr 2020 #7
When you start seeing shooting at food banks and riots, you will know the answer Moostache Apr 2020 #8
THIS 0rganism Apr 2020 #16
the approach been ALL wrong since day one. The markets should have been shut down indefinitely beachbumbob Apr 2020 #9
They can print money Chainfire Apr 2020 #10
like the inflation after the 2008-9 collapse? Voltaire2 Apr 2020 #12
Agreed customerserviceguy Apr 2020 #19
I see Democrats continually falling into the 'deficit hawk' trap. Voltaire2 Apr 2020 #20
On Top Of That... ProfessorGAC Apr 2020 #23
It takes money creation and high velocity of money to stoke inflation. roamer65 Apr 2020 #22
Unless Velocity Is High Enough! ProfessorGAC Apr 2020 #24
All I know is customerserviceguy Apr 2020 #29
What we are facing now is not 2009. Chainfire Apr 2020 #25
The 2009 bailout resulted in about 14T between the Fed and the Treasury. Voltaire2 Apr 2020 #27
There is no evidence of any particular limit on our ability to incur deficits. Voltaire2 Apr 2020 #11
Trumpcession is real and it's here. gibraltar72 Apr 2020 #13
They have no intention of keep paying durablend Apr 2020 #14
Trump is such a deep thinker. Lol! shockey80 Apr 2020 #15
he's happy enough to gamble with other people's money -- or lives 0rganism Apr 2020 #17
Until the printing presses catch fire. Blue_true Apr 2020 #18
The Fed can create any amount it wants. roamer65 Apr 2020 #21
Until the demand side, of the fed 'money' supply side, decides 'differently' empedocles Apr 2020 #26
. . . until they and their buddies have enough money to walk away from everything, AND Nay Apr 2020 #28
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