Understanding Bailouts -- How Inflation Works

[discjokey]

Let's get creative here. Let's say we have a banana. We print a single IOU, that is our money, a single IOU buys us one banana. So we have:


This



buys us this





Now, our friend is in trouble, son of a dog took out a line of credit and can't pay it off. Our government steps in and decides to issue him some bail outs. So they print one more IOU (money) and give it to him. Thus what we have now is this


One IOU




buys us half a banana





For the past six months this has been done on the scale of hundredths of billions. Picture your mother, she has 10,000 in credit card debt. Now to keep up with monthly payments, she takes out of another credit card to pay this one off. That is what they doing on the hill.



Watch this film about money: Money As Debt




No that there weren't people fighting against this. Ron Paul for one. But you people had to vote for Obama, haven't you. Hahahha, you are screwed big time.

[aspkin]

Inflation, I don't think we've seen anything yet or much of anything, but hopefully when it does hit we're not all screwed.

[Here We Go Again]

Originally Posted by discjokey

But you people had to vote for Obama, haven't you. Hahahha, you are screwed big time.

I hate to tell you but unless you are flying a FALSE banner flag you too live in the USA....
So you are as screwed as the rest of us....

[Jonas]

If the US dollar wasn't the world's reserve currency, it would have done a hyperinflation long ago. Instead it'll do a normal inflation and the bailout will hurt the rest of the world, too, as they keep the US dollar as reserve currency.