Thursday, April 02, 2009

Show me the Money

Can someone, anyone, tell me where exactly this miraculous $1 Trillion USD will come from?

Seriously, we are in the midst of an economic crisis caused by over spending, and too much debt and credit. How will spending $1 Trillion we don't have - $1 Trillion in more credit and debt - will make the situation better and not worse, in the long run?

This is madness.

Update:

Catelli and I aren't the only ones who think this is insane. Check out Sheldon Richman at the Foundation for Economic Education (FEE).

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5 Comments:

At 9:39 AM, Blogger Catelli said...

Damned if I know Mike. Its a good fucking question.

I guess its going to come from the same place all of the other money already promised.

I guess we're going to learn the answer to the question "What would happen if we put future generations trillions of dollars in debt before they're even born?"

 
At 9:44 AM, Blogger Mike said...

Crazy isn't it? Either mortgage out grandchildren (and at this rate our great-grandchildren) or simply create the money out of nothing, as the Fed is wont to do.

My guess is a little of both - so that our kids will be able to pay back the Chinese with money that is worth less than it is today because of inflation.

Kinda of a fraud against the Chinese, eh?

Loan me $100 today and I'll pay you back $110 in 10 years when that $110 dollars is really with $50...

If you or I did that, we'd be in jail for fraud, for running a Ponzi scheme. But its ok if its government policy.

 
At 10:46 PM, Blogger Greg said...

I think it will be okay as long as they only spend the money propping up the construction of cars that nobody wants to buy.

If you spend negative money on nothing valuable, I believe that cancels out.

Think about it. I know I haven't.

 
At 9:09 PM, Blogger Kimberly said...

Ummm...the cash came from me. I couldn't think of anything better to with MY money than bail out people who shoulda bailed a long time ago.

 
At 11:21 AM, Blogger Mike said...

Kimberly,

Ya, I can't imagine what I would spend it on either. I soo glad the government steals it from me...clearly it knows much better than I do how to spend the money I make.

;-)

 

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