Author Topic: Where's the money?  (Read 1512 times)

Offline technicalanarchy

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Where's the money?
« on: June 10, 2011, 11:31:14 AM »
I hear and read about so much money getting printed and it's devaluing the dollar and the dollar is certainly dropping, government is spending way to much also. But where is the freaking money? I can't find anyone who will come close to having it. Even the people I know that are or were well off are claiming to be near broke.

It's printed are we just shipping it overseas or what?

Offline ncjeeper

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Re: Where's the money?
« Reply #1 on: June 10, 2011, 11:56:29 AM »
I think its just sitting in the bank vaults of JP morgan, Wells Fargo, and BOA.

Offline Silver surfer

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Re: Where's the money?
« Reply #2 on: June 10, 2011, 01:28:03 PM »
I hear and read about so much money getting printed and it's devaluing the dollar and the dollar is certainly dropping, government is spending way to much also. But where is the freaking money? I can't find anyone who will come close to having it. Even the people I know that are or were well off are claiming to be near broke.

It's printed are we just shipping it overseas or what?

They print the money and do various things with it.Most of it get's placed into central banks to take "loans" from to pay foreign debt and for other "loans" that the feds use to buy frivilous things.Some of the money is/was distributed for the tax rebate stimulus in 08'.Some was given to all the carmakers,banks and other institutions that were bailed out.Some was sent overseas for various "official" government reasons.However,the large majority of it is used to pay debt,which,increases debt in several ways because whatever they take from the central banks has to be repaid somehow,and secondly,since the dollars have devalued so much,whatever we owe in debt,we have to pay twice as much back BECAUSE of the devaluation.At this point in the game,our USD has almost the same value as monopoly money to our debt holders.We just keep printing and printing money,but,the feds have absolutely *nothing* as an asset to back it's worth.
Really,all the QE programs have done is simply buy time.The QE programs were never meant to "fix" the economic problem,it was simply to literally "buy time".

Offline tamo42

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Re: Where's the money?
« Reply #3 on: June 10, 2011, 03:11:27 PM »
Also some of it is making its way into housing in NYC, DC, and Silicon Valley. Those are the only markets that show any signs of price increases.

Offline bigbear

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Re: Where's the money?
« Reply #4 on: June 11, 2011, 02:57:40 PM »
You'll recall that the US (much like it's citizens) never balances it's budget (or really have one) and we're not earning more on trade (we constantly run a deficit).  They're using it to buy US debt (Treasuries).

Military paychecks, SSA paychecks (unemployment/social security), Medicare/Aid, contractor paychecks (stimulus package), general gov't employment (and their rising paychecks/pensions), bailing out both foreign and US banks ("so they don't go bankrupt" and cause a "systemic crisis"), cash for clunkers, bailing out states (state worker/teacher pensions are underwater and states can't print their own money like the Fed)... 

All cost more than the taxes collected...

The only solutions lead to increasing income/tax revenue for the gov't and/or decreasing expenses.

Printing money (QE) is just a snakes way of doing both.  It effectively taxes individuals because it makes their money worth less while giving the gov't more to spend.  And it doesn't change the social security/unemployment payouts, which means they get less stuff for their fixed income. 

It does inflate the stock market - which seems to be the only indicator that 'economists' (at least the ones that have influence) look at...