Is trying to spend your way out of debt similar to claiming if you still have checks, you have money?
by admin ~ April 16th, 2009 . Filed under: Politics .
Water Over Gold asked:
Obviously checks are just paper. You can write as many as you want, but it’s still paper.
Obviously checks are just paper. You can write as many as you want, but it’s still paper.
This is similar to the Federal Reserve printing dollars. Dollar bills aren’t backed by anything of value….they’re paper. But when the govt. needs to pay for something it can’t afford they monetize debt (”print” money). Well just because you have more paper dollars doesn’t mean you have any more money. It just means each paper dollar is worth less than it was before you printed all the new ones.
Theresa
April 16th, 2009 at 8:31 am
The value will not be so much money floating around that the value will cost less if you make more peanut butter then each dollar bills then there will be so much money floating around that the value will not be so much.