Trying to understand how we print money out of thin air.

[wgadget]

http://en.wikipedia.org/wiki/Money_supply

Now, which is it: M1, M2 or M3?

[wgadget]

Totally disagree.

Most people are in debt and have no money. Debt is not money, or we'd all be rich!

Debt is money to our creditors.

[Black Flag]

http://en.wikipedia.org/wiki/Money_supply

Now, which is it: M1, M2 or M3?

M0

[Black Flag]

Debt is money to our creditors.

No, it is an IOU that requires you, as the debtor, to perform, earn MONEY, and pay it off.

And they know that difference between money in their hand and your IOU in their hand.

[wgadget]

No, it is an IOU that requires you, as the debtor, to perform, earn MONEY, and pay it off.

And they know that difference between money in their hand and your IOU in their hand.

Perhaps. But they also have an inkling that the more the US prints, the less the dollars they are owed will be worth. And you can bet that printing is the only tool left in the Fed's toolbox. Inflating the debt away is their only option.

[Black Flag]

Perhaps. But they also have an inkling that the more the US prints, the less the dollars they are owed will be worth. And you can bet that printing is the only tool left in the Fed's toolbox. Inflating the debt away is their only option.

Correct - up to a point.

Inflating debt away is a strategy, but if that strategy ends Western Civilization, what's the point of the strategy?

They will stop printing before hyperinflation ... I strongly believe (since I cannot predict what they will do in the future) since they are the biggest losers of all if they kill money.

[wgadget]

How can they kill lack of confidence in the paper currency? Once it hits, it will be rampant. I doubt if the Chinese and Indians care about our media propaganda to the contrary. And furthermore, what's to stop them from changing the reserve currency? In a global economy, does it really matter to the powers that be?

[Black Flag]

How can they kill lack of confidence in the paper currency? Once it hits, it will be rampant.

It will "always" buy something, that is why it is still around after losing 95% of its "value" since 1913.

I doubt if the Chinese and Indians care about our media propaganda to the contrary. And furthermore, what's to stop them from changing the reserve currency? In a global economy, does it really matter to the powers that be?

The question necessary to ask is
"Change to what"

What nation of economic size (because no one will switch to a small economy money) will undergo a massive recession of their own currency for it to become the global reserve currency?

None.

Its the US$ or bust, baby!

[wgadget]

It will "always" buy something, that is why it is still around after losing 95% of its "value" since 1913.



The question necessary to ask is
"Change to what"




What nation of economic size (because no one will switch to a small economy money) will undergo a massive recession of their own currency for it to become the global reserve currency?

None.

Its the US$ or bust, baby!

Well, Strauss-Kahn wanted SDRs, and you see where that got him. If they're planning to keep the US$, then they are planning to inflate. That's the ONLY TOOL LEFT. And the dollar will crash under the weight.

What a shocker.

[awake]

Open notepad on your computer. Type 100...Then at your leisure add zeros when ever you like. That is literally how they create money now. Be careful not to add too many at once, lest you get caught watering down the gas too much...Magic Ben knows just the right speed.