Maybe we won't have to worry about hyperinflation from excessive printing of money after all. Seems the treasury department can't even print money correctly--to the tune of
$100 billion in bills that can't go into circulation. Government incompetence might save us yet.
http://www.nbcdfw.com/news/local-beat/Funny-Money-111450669.html
Good thing $100 billion doesnt cost $100 billion to make. Its just paper... recycle it.
Serious question. Can someone please explain "printing money." I think I understand the basic idea of the treasury issuing more bonds but I don't understand how that is the same as "printing money." Issuing bonds involves some paying for these bonds, so nothing is being given away....
In case anyone wants to read this in an actual news source:
http://www.star-telegram.com/2010/12/06/2684080/production-woes-delay-release.html
The Limey`s are laughing at us too
http://visiontoamerica.org/story/quantitative-easing-explained-so-all-can-understand-this-will-make-you-angry.htmlbiggus dickus wrote:
Serious question. Can someone please explain "printing money." I think I understand the basic idea of the treasury issuing more bonds but I don't understand how that is the same as "printing money." Issuing bonds involves some paying for these bonds, so nothing is being given away....
Physical bills are virtually meaningless to the money supply. Its all computerized and documented on ledgers. Nothing to see here. You can all move along.
biggus dickus wrote:
Serious question. Can someone please explain "printing money." I think I understand the basic idea of the treasury issuing more bonds but I don't understand how that is the same as "printing money." Issuing bonds involves some paying for these bonds, so nothing is being given away....
"Printing money" is a figure of speech. While some of the money is physically printed, most is just electronically credited to the banks who have accounts with the Fed.
Rational Economics wrote:
"Printing money" is a figure of speech. While some of the money is physically printed, most is just electronically credited to the banks who have accounts with the Fed.
So how does this make inflation any better?
I'll trust Bernanke for now, but oil above 100 dollars in the next 5 years is unacceptable.
Since Bush left office, Obama has managed to keep it under that level, but I think once the 2012 election rolls around and a new president gets picked unfortunately, the fleecing of America can begin again.
Black Kid wrote:
So how does this make inflation any better?
I'll trust Bernanke for now, but oil above 100 dollars in the next 5 years is unacceptable.
Since Bush left office, Obama has managed to keep it under that level, but I think once the 2012 election rolls around and a new president gets picked unfortunately, the fleecing of America can begin again.
I wasn't defending inflation. America is in for the worst inflationary episode in history if we don't make a 180 degree U-turn in the next few years.
Mr. Obvious wrote:
Maybe we won't have to worry about hyperinflation from excessive printing of money after all. Seems the treasury department can't even print money correctly--to the tune of
$100 billion in bills that can't go into circulation. Government incompetence might save us yet.
http://www.nbcdfw.com/news/local-beat/Funny-Money-111450669.html
In terms of bills printed in the US, the toilet has long been clogged.
Since Bush left office, Obama has managed to keep it under that level, but I think once the 2012 election rolls around and a new president gets picked unfortunately, the fleecing of America can begin again. (Quote)
Since Obama took office, US national debt has increased an average of $4.9 billion a day.
Under the previous administration, the average daily debt increase was $1.7 billion.
Rational Economics wrote:
biggus dickus wrote:Serious question. Can someone please explain "printing money." I think I understand the basic idea of the treasury issuing more bonds but I don't understand how that is the same as "printing money." Issuing bonds involves some paying for these bonds, so nothing is being given away....
"Printing money" is a figure of speech. While some of the money is physically printed, most is just electronically credited to the banks who have accounts with the Fed.
I think I get that part, but is the Fed really "giving" it away, electronically or not. In this context I thought the mechanism in question is the Fed offering bonds. In this case someone is buying the bonds/debt....so money is not really created is it?
biggus dickus wrote:
I think I get that part, but is the Fed really "giving" it away, electronically or not. In this context I thought the mechanism in question is the Fed offering bonds. In this case someone is buying the bonds/debt....so money is not really created is it?
You have it backwards; Fed is buying, not selling bonds.
http://www.youtube.com/watch?v=PTUY16CkS-kOk people, first of all, please watch these videos which roughly explains how our fraction-reserve banking:
http://www.khanacademy.org/video/banking-1?playlist=Banking%20and%20Money
(there's a couple of them so make sure you watch enough of them before coming back).
Second, are you saying something like this has never happened in the private sector? Planes crash, planes derail, car fuel tanks explode, chemical plants leak. This screw up by the government is pretty bad, but no one lost their lives over it and it probably won't end up costing much money to fix. People make mistakes, and maybe this wasn't human error at all we weren't given that information.
Kevin52 wrote:
biggus dickus wrote:I think I get that part, but is the Fed really "giving" it away, electronically or not. In this context I thought the mechanism in question is the Fed offering bonds. In this case someone is buying the bonds/debt....so money is not really created is it?
You have it backwards; Fed is buying, not selling bonds.
http://www.youtube.com/watch?v=PTUY16CkS-k
Yo, printing money means the Fed is buying bonds so people have more money to spend. When you print money you dont give it away.