Is it scary how fast the Feds are printing money? Should I be worried about it??

Why is it that every time I ask a question like this, I get 2 different answers from 2 different sets of people that both have reasonable facts? Which side do I listen too? I just don't know. One guy says that printing more cash makes all the difference in the world, and the next guy says that is doean't make a difference. It makes sense to me that if you have more of something in the world, it will be less valuable, because it isn't in demand as much. But then again, maybe it's just not supposed to make sense, because it has something to do with the government.

I guess there's just no way of telling what will happen until it does happen. We'll see.



-tbud

 

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It is interesting to see, isn't it? Probably one of the great mysteries of life, how certain topics (political leanings, abortion, animal rights, religion, and on and on) can continue forever as the big societal debates, when we're all privy to the same set of facts, yet come to different conclusions.

Dave

 

This occurs in many cases because some people base their opinions on facts, while other people base their opinions on.....well, something else.

Paper money isn't in demand, wealth is in demand. These days, the two do not go hand in hand.

Printing a large amount of currency only becomes a problem if the government starts funding programs, paying debts, or divvying up the currency to citizens without having debited some source for the funds. In this case they would be conjuring buying power (wealth) out of thin air, which would accelerate inflation.

 

Awh but Daaaaaaaaaaad...

 

Yes, there are certainly those situations, but that type isn't really the mystery I was referring to. I'm talking about situations where folks have all the facts at hand, but based on those same facts, different folks come to a different conclusion. Whether it's a gap in applying logic, an inherent bias that doesn't allow for certain conclusions that may seem obvious to others, or some other "computing error", I don't know, but it is curious that so many of life's great questions fall into this scenario.

Dave

 

I wonder is anyone has taken into account the world's population grows by over 1%, or 130 million, every year. More people means more money is needed. The dollar is used more widely outside the borders of the US than within. Continual printing of money isn't something new, it's been going on for decades, and despite what many believe, the US government doesn't pay off debt by shipping containers of $100 bills to it's collectors, it's done electronically.
Guy

 

I'm will the think there are a lot of Greeks holding onto American Dollars this week. But that is just a guess.

 

This is the perfect reason for my arguments for $200, $500, and $1,000 FRNs coming back to haunt you guys again. Yeah, I guess you should have expected it. :devil:

Why are the BEP facilities wasting so many millions of dollars printing so many high tech $100 bills, when they could be printing, slightly higher tech $1,000 bills that can do the job of 10 of those $100 bills? I'll never figure that one out.

And do not tell me its because of organized crime, or no demand for large bills, or there would not be 100 Euro notes worth almost $200 U.S. 200 Euro notes worth almost $500 U.S. or 500 Euro notes worth almost $1,000 U.S. :dead-horse:

 

FWIW, I agree that there should be a 500 dollar note. The problem is that Iran is very good at reproducing our notes which is why you see them constantly upgraded today t the point where I couldn't even recognize a counterfeit 20 any more. That might be a reason to use gold, for a $500 coin that is not easy to counterfeit. I always wanted the ASL coin to be monetariezed at 20 dollars for circulation. I guess silver blew through that pricing and i was wrong

 

Ask five economists their opinion and you will get five different answers.
Six if one went to Harvard.