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Windsock

07/26/11 9:38 PM

#103241 RE: Elmer Phud #103234

You are absolutely mistaken. Try finding any kind of support for this statement. You know the kind of thing that you always ask for, a link.
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wbmw

07/26/11 9:48 PM

#103245 RE: Elmer Phud #103234

Elmer, you are mistaken. "Printing money" is a euphamism, no doubt based on the fact that Treasury Bond interest rate is so low, it's practically an equal equity exchange. And by the way, you can "print money", too, by changing a dollar for a hundred pennies. Each copper pellet, however, would only be worth 1/100th of the original bill.

But back to reality, the idea of money being worth something just because the feds print it, is fiction. Every printed dollar is a dilution of the value per bill, and every borrowed dollar has to be paid back to the bond holder, with a tiny bit of interest.

If the interest rate were not so low, the idea of "printing money" would be dead. No doubt the thought of that is appealing to some, but again - back to reality - it affects the Treasury's ability to create liquidity and movement in the economy, and that will impact EVERYONE.