Friday, May 7, 2010

Thought for the day....

In December 2007, there was approximately $800,000,000.00 actual dollars in circulation - paper money....

In December 2009, there were $1,999,897,000,000.00 in circulation.

So - thought for the day.... How much is that bill in your wallet actually worth?

And as a bonus thought - If you read your bill, it is signed by the Secretary of the Treasury - it has USA all over it - It looks like its all official from the United Stated Government. But then right there at the top (of a $1) it has this "FEDERAL RESERVE NOTE"..... Its not backed by the U.S. Government. The Federal Reserve is a PRIVATE ENTITY. You dont get to know who works there - who runs it - you dont get to see their books or their dealings....

Your piece of paper is worth only what the Federal Reserve tells you its worth - this company that answers to no one.... So - what is it worth?

4 comments:

Sam said...

Wow. In other words, there is 2,500 times the cash there was just two years ago.

This makes my head hurt Perls. Almost all our savings are in junk silver and storage stuff. Whew.
Sam

Mayberry said...

Monopoly money... It's only worth what someone thinks it's worth. When more folks realize it's really worthless, the less value it will retain...

HermitJim said...

Won't by near what it did two years ago, either! I think we are losing ground!

GunGeek said...

Your numbers are off. The monetary base for Dec 2007 was 836,352,000 and for Dec 2009 it was 2,026,252,000.

That means there is 2.4 times as much money out there now as there was then, not ~2500 times as much.

Still bad, but WAY less bad.

http://www.federalreserve.gov/releases/H3/hist/h3hist2.pdf