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Government can’t print money properly
The Lookout News Blog and Yahoo ^ | Mon Dec 6, 9:36 am ET | Zachary Roth

Posted on 12/06/2010 1:54:07 PM PST by hattend

As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print the money correctly.

Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: benanke; dollars; fed; fubo; government; littletimmy; money; printing; screwup; treasury
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To: SES1066

Since nobody would know the difference between a fiat $20 dollar note in circulation and one of these fiat $20 dollar notes held in the warehouse, I would say they would have identical value.

The real question is: is a federal reserve note (ie fiat money, backed by nothing), the same as a real US dollar? It’s considered “legal tender”, an instrument of monetary value. It used to be like a government-backed, standardized check, that you could turn in and get a real silver dollar or real gold dollar. Now you can’t.

I think the answer is that once we went off the gold standard, what “the US dollar” actually was, really became nothing. It became this thing hazy, nebulous thing called “confidence”. We had a defined standard but we dropped that standard. Now we have no standard. We kind of developed a petrodollar standard, where we sort of derived it’s value from how much oil it could buy us (ie dollars per barrel) but that is not a set standard. It made the dollar a global currency of choice but again, it’s still based in ‘confidence’ and not anything of tangible, intrinsic worth. And now most places want to use a different standard than petrodollars. And probably will. Which will (and is) affecting the nebulous “confidence” the dollar’s worth is now based on.


21 posted on 12/06/2010 2:25:33 PM PST by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: hattend

So, let me try to understand. In tough times, the government decides to “print more money”. The order goes out, and the print shop gears up and runs off the bills, then stacks them on palettes ready to ship.....and then what happens?


22 posted on 12/06/2010 2:31:27 PM PST by CanaGuy (Go Harper! We still love you!)
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To: CanaGuy
.....and then what happens?

FUBO happens

23 posted on 12/06/2010 2:33:45 PM PST by hattend (The meaning of the 2010 election was rebuke, reject, and repeal. - Sarah Palin)
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To: hattend
Hell, put him on the trillion dollar bill.

I'd rather not, it would mean looking at his mug every minute of the day if his likeness were on the most common trillion dollar bill, rather than what will become the forgotten single dollar bill.

24 posted on 12/06/2010 2:34:32 PM PST by C210N (0bama, Making the US safe for Global Marxism)
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To: hattend

The machine must be getting extremely worn out.


25 posted on 12/06/2010 2:49:51 PM PST by castlegreyskull
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To: MrB

On 60 Minutes last night, Bernanke swore that the USA is NOT printing more money.

MORE LIES!!!!!!


26 posted on 12/06/2010 2:56:55 PM PST by ridesthemiles
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To: BooBoo1000

The 1st bills with TurboTax Timmy’s name on them ,too.

Timmy is deeply saddened.


27 posted on 12/06/2010 3:07:24 PM PST by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: hattend
Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC

What would Willie Sutton do?

28 posted on 12/06/2010 3:17:09 PM PST by Paleo Conservative
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To: WOBBLY BOB

O is making it rain... he must have learned from Pac Man Jones.


29 posted on 12/06/2010 3:38:09 PM PST by Trajan88 (www.bullittclub.com)
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To: The Comedian
I could save them a small fortune in paper and ink .. the answer is slightly larger denominations...


30 posted on 12/06/2010 3:41:49 PM PST by Neidermeyer
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To: WOBBLY BOB; All

Yes, but did anyone notice that they are REPRINTING the old bills with HENRY PAULSON’S SIGNATURE???

Seriously, would Obama’s eligibility have anything to do with that not being “legal tender?”


31 posted on 12/06/2010 7:14:28 PM PST by autumnraine (America how long will you be so deaf and dumb to the chariot wheels carrying you to the guillotine?)
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To: BillM
Why would you want 1.1 billion $100 bills at Fort Knox?

Buy votes....................

32 posted on 12/07/2010 5:27:35 AM PST by Red Badger (The House finally fell on Nancy Pelosi..........)
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