The Mudcat Café TM
Thread #118544   Message #2566517
Posted By: Sawzaw
14-Feb-09 - 12:07 AM
Thread Name: BS: Obama's First Televised Press Conference
Subject: RE: BS: Obama's First Televised Press Conference
LH:

You raise a very interesting point about money. The amount of money in circulation increases every day.

Obviously it is printed up by the government with no real backing other than "the full faith and trust of the US government", so it is worth less as more is printed up, but just how is it put into circulation?

I have my own ideas but I am wondering how other people think it is done. Not a trick question.





It disgusts me the way real estate keeps going up, at least before the recent bubble. Real estate agents keep hyping the prices up and appraisers keep inching up their appraisals based on what some agent managed to shooze someone into paying.

Perhaps if the Gov quits counterfeiting it's own money the inflationary price spiral would slow down or stop.

One thing about this Porkulus bill that bothers me is that it will cause inflation somewhere down the road, not too far down the road, that will more than erase whatever gains if makes, if any.

It is nothing other than spending money that we don't have and does not address the root of the problem, people who cannot pay their mortgages.

The government(democrats, republicans, white yellow, pink, male, female, gay, straight, whatever) allowed this to happen and did not regulate financial institutions effectively. Now it looks to me like they are screwing up again, even worse while they posture and blame each other.