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Help me understand
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Thread: Help me understand

  1. #1
    Join Date
    Oct 2008
    Location
    USA
    Posts
    358

    Default Help me understand

    First some background. I've never been into politics, or what was going on etc. A year or so ago when this started happening, I've became addicted. Been reading, learning, listening, trying to find out everything I could about the economy and how our system works. Learned about the Fed, fractional banking, and all the other b.s. out there. Like a train wreck, I can't look away. My question is, and I haven't heard anyone talk about it, where the hell is the govt. getting this 900 billion to spend? I think I know the answer, which leads to more questions, but I'll wait on those till I get some responses, to make sure I'm on the right track.

  2. #2
    Join Date
    Oct 2008
    Posts
    390

    Default

    Quote Originally Posted by PSUDave View Post
    First some background. I've never been into politics, or what was going on etc. A year or so ago when this started happening, I've became addicted. Been reading, learning, listening, trying to find out everything I could about the economy and how our system works. Learned about the Fed, fractional banking, and all the other b.s. out there. Like a train wreck, I can't look away. My question is, and I haven't heard anyone talk about it, where the hell is the govt. getting this 900 billion to spend? I think I know the answer, which leads to more questions, but I'll wait on those till I get some responses, to make sure I'm on the right track.
    Our government sells treasury bills, and those are sold to individuals or countries or whoever. Once (which is happening right now) people/countries stop buying those treasury bills, the federal reserve will start buying them. When other countries buy our bills, they are at least using 'good money.' Money that has a value.... when the fed buys these treasuries they do it with money that has no value. There-in lies a huge problem when that happens as the treasury bills will become worthless, which means no one will buy them, no one wants to hold worthless treasury bills, so they will sell them and flood the market, which means the fed will have to keep buying with more 'made-up' money. Thus the never ending cycle of doom.
    WARNING: After upon reading my post, toilet water may hit you in the face.

  3. #3
    Join Date
    Nov 2008
    Location
    Charlottesville VA
    Posts
    41

    Default

    Dave: The money is coming from nowhere. It's simply being created by printing paper or adding zeroes to electronic ledgers. All of which will be carried forth as a liability for future generations to pay off - er, I mean inflate away.

  4. #4
    Join Date
    Sep 2008
    Posts
    542

    Default

    Also Dave, watch in April/May when taxes come due and unemployment is much higher and people can't pay their taxes. Also watch city/county/state BIG budget cuts for lack of Tax revenues. This is called a tax shortfall. It's going to get very ugly before it gets any better.

    Before when Oil prices were climbing OPEC could buy US T-Bills, now the only people who will be buying T-Bills will be the Feds and Americans who don't know any better.

    Us on these boards know better, we buy Precious Metals.

  5. #5
    Join Date
    Jun 2008
    Posts
    516

    Default

    Another way to look at it ---the cost of printing a $1 bill is about .03 , the cost of printing $100 bill is about .03 ----same paper , same amount of ink. Zeros are even cheaper. That's why we call it 'fiat' , because it's created by the stroke of a pen and backed by confidence that it will be redeemable by someone.

  6. #6
    Join Date
    Mar 2008
    Posts
    2,127

    Talking

    Thus the never ending cycle of doom.

    GOOD NAME FOR A METAL BAND

    i GUESS WE WILL ALL BE THE GROUPYS

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