Gentleman, Start Your Printing Presses!
ByMeet the Weimar Dollar
Inflation 1923-24: A German woman feeding a stove with currency notes, which burn longer than the amount of firewood they can buy.
Micheal Fox writes “Where is this $150,000,000,000.00 “economic stimulus package” coming from? Let’s make this really clear. The United States government does not have any money. On the contrary, the national debt now stands at $9.2 trillion dollars, which is more than 61 times more than the “package.” So, as they don’t have the money to give, those $600 checks they plan to mail out this spring will literally comprise just printing money.
In order to hand out a mass of cash they don’t have, therefore, they have to borrow it. Consequently, this week Bloomberg reported that rates were going up for long-term treasury notes. There it is, this deeply-indebted entity – the US Government – is borrowing an additional $150 billion on top of that $9.2 trillion they already owe, then handing it out…”
Read the rest of the article.
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7 Comments
February 8th, 2008 at 5:25 pm
Just to start the flame war off properly, you do realize that this kind of financial meltdown is an invevitable consequence from government meddling and control in the money supply, don’t you? The Keynsian, fiat money, regulatory chickens once again come home to roost.
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February 8th, 2008 at 5:45 pm
hmmm.
well,yeah, Keynes was spendthrift.
But, just lately, oh, since 2000, we’ve had an administration that raked off billions to corporate buddies with no-bid contracts.
seems to me that the Iraq adventure is the problem, and we have Bushian chickens coming home to eat the farm.
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February 8th, 2008 at 7:03 pm
you dont think i would post an article about the possible hyper-inflation of the US dollar and the absolute shit-storm it will bring to our shores because i actually support this kind of idiocy?
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February 8th, 2008 at 11:51 pm
can this quit being personal and defensive? Some good discussion up here. I’ learning, sometimes. Other times, not so much.
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February 9th, 2008 at 1:29 am
The Bush kleptocracy cut its teeth on this sort of thing with its first tax cuts. They airlifted pallet loads of $100 bills to Baghdad after it fell – the equivalent of about 74 washing machines in size – disbursing some from pickup trucks. The Coalition Provisional Authority played football with “bricks†of $100 bills. $9 billion went missing. It was probably a no-bid contractor doing the accounting.
They rewarded corporations for moving jobs and hiding profits offshore with a tax holiday, the American Jobs Creation Act. Goldman Sachs dubbed it “no lobbyist left behind.” Bush’s former chief of staff for the Council of Economic Advisers observed, “you might as well have taken a helicopter over 90210 [Beverly Hills] and pushed the money out the door.â€
We’ll be cleaning up the mess these guys created for decades, if America lasts that long. The one I grew up in is already gone.
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February 9th, 2008 at 7:22 am
That is certainly a spending problem; as there are so many.
But John R. is correct: Inflation is a direct consequence of the monetary policy and the money supply produced by the central banking system approved by Congress in 1913 (not, oh, since 2000) in the form of the Federal Reserve. Inflation, boom-bust business cycles, recessions and job losses are all caused by government interference in the marketplace. This meddling began a long time ago and promises to continue long after the end of the current Presidential administration. I will not support any Presidential candidate who favors continuing the central banking system.
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February 9th, 2008 at 10:11 am
I don’t support Ron Paul but he his generally right about his anti-Fed stance, in my opinion. The Fed is important for many reasons and Hamilton was right to impose it as one of the early policies, but these have to do with things that require a lot of money like war or diplomacy or underwriting a stable banking system. The “Fed concept” can certainly be called on the carpet if it makes a misstep because it can destabilize the same banking system and allow problems to escape to the citizenry.
The government may borrow the money for the stimulus package but the money is actually a CREDIT against 2008 tax bills. It will be a busy year but at tax time next year look for a box that asks if you recieved the tax credit and I bet that it will be a line item addition to your tax liability. The money will be temporarily borrowed but it is borrowed against the soundest credit risk there is.
It is the ultimate type of bait and switch that could possibly coincide with an election year. Every politician has a stake in it’s passing.
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