task0778
Diamond Member
Every morning I get a daily email missive from Dan Flynn, who writes for The American Spectator. This morning he wrote this in reference to how much money the Gov't is spending in just the last day or 2:
Do the politicians not see how spending money that does not exist adversely impacts money that does exist? The United States no longer relies on the Chinese, Japanese, or Europeans for the bulk of its deficit financing. It depreciates its currency to fund its operations. The Federal Reserve balance sheet amounts to $8.2 trillion, more than a third of the U.S. gross domestic product, before this current round of spending. Less than two years ago in September of 2019, it amounted to less than $3.8 trillion. In less than two years, the money supply more than doubled. When you flood the market with apples, widgets, pencils, gasoline, labor, or any other product, it puts downward pressure on price. This applies to money. The Federal Reserve, with the encouragement of the current president, his predecessor, and Congress, flooded the market with money. Guess what happened? Something very predictable. The value of our money slipped to a degree not witnessed in decades.
And then:
As politicians ponder this $3.5 trillion budget legislation, a Hill/HarrisX poll reports that Americans regard the two problems that the budget likely exacerbates as the top economic concerns facing the nation. Thirty-one percent of registered voters called inflation the top concern. The national debt, earning top billing for 22 percent, came in second. The people understand economics better than the people they elect do.
thehill.com
Without getting into the politics too much, I have to think (hope) that most Americans want their kids and grandkids to be better off than they are/were, and yet here we are spending money hand over fist that future generations will have to pay the growing interest on. And don't give me this crap that it's intra-govt debt, most of it is NOT. Sooner or later interest rates will rise and when they do this country will have a major problem.
Do the politicians not see how spending money that does not exist adversely impacts money that does exist? The United States no longer relies on the Chinese, Japanese, or Europeans for the bulk of its deficit financing. It depreciates its currency to fund its operations. The Federal Reserve balance sheet amounts to $8.2 trillion, more than a third of the U.S. gross domestic product, before this current round of spending. Less than two years ago in September of 2019, it amounted to less than $3.8 trillion. In less than two years, the money supply more than doubled. When you flood the market with apples, widgets, pencils, gasoline, labor, or any other product, it puts downward pressure on price. This applies to money. The Federal Reserve, with the encouragement of the current president, his predecessor, and Congress, flooded the market with money. Guess what happened? Something very predictable. The value of our money slipped to a degree not witnessed in decades.
And then:
As politicians ponder this $3.5 trillion budget legislation, a Hill/HarrisX poll reports that Americans regard the two problems that the budget likely exacerbates as the top economic concerns facing the nation. Thirty-one percent of registered voters called inflation the top concern. The national debt, earning top billing for 22 percent, came in second. The people understand economics better than the people they elect do.
Poll: Inflation named as top economic concern for voters
Voters say inflation is their top economic concern, a new Hill-HarrisX poll finds, as members of both parties warn about rising prices.Thirty-one percent of registered voters in the …
thehill.com
Without getting into the politics too much, I have to think (hope) that most Americans want their kids and grandkids to be better off than they are/were, and yet here we are spending money hand over fist that future generations will have to pay the growing interest on. And don't give me this crap that it's intra-govt debt, most of it is NOT. Sooner or later interest rates will rise and when they do this country will have a major problem.
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