[lucky american]

Don’t worry. I saw nothing about the virtual currency we have been using. You know, currency on a computer screen?
No one talks about all of the transactions done by computers in a millisecond. This is the world we live in now. No one uses cash anymore. Everything will be “credits” at some point. Not gonna happen. Example: Bitcoin

[grania]

The thing people don't realize fully is the stock market. Example: if you asked me how much money I have in the stock market, the answer is $250. That's what I could write a check for. To get money for the stocks, let's say it's $5000 I'd have to sell those stocks first. If everybody sold their stocks to get the money, the price of stocks would quickly spiral down, and the stocks would sell for a fraction of their value. Thus, that "money" disappears into thin air.

To try to counter the effects of the recession interest on savings was lowered for one reason so people wouldn't sell off their stocks quickly without enough buyers. Saved the stock market, screwed savers who want to prepare for the future.

[kearnyirish2]

“No one talks about all of the transactions done by computers in a millisecond. This is the world we live in now. No one uses cash anymore.”

Here in NJ we’re reverting to a Third-World economy where people work for cash, which they use to pay for the rent on their illegal apartment, groceries in dollar stores/flea markets, and gas for their unregistered, unlicensed cars. The flood of foreigners are showing the remaining American-Americans how to do it...

[bert]

All money today is blips on an electronic ledger. The bills and coins thought of as money are physical representations of ledger entries. That is the Fed ledger.

I presently almost never use physical money. I need $14 to pay my barber but that is about all. Almost all my income is transferred directly to my electronic ledger from other electronic ledgers. I have two clients that still mail checks but the others make direct deposits.

Payment is made by debit or credit cards. If a check is required, the bank bill pay ledger will write and mail the check. Or, if it knows the account will deposit ite funds directly.

Regarding hyperinflation, I don’t think so. There will be inflation but it will be at a maximum rate of toleration. I have pegged that rete at <7%. That inflation is the way the debt will be paid. The debt will be devalued by the inflation. Payments will be made in $$ haveing less value than those borrowed.

The problem is unemployment. So long as there is massive unemployment there is a greater supply than demand and thus labor prices are very stable. It dawnwd on me last weekend that the vehicle is Obamacare.

Obamacare is going to drive up the price of everything. The increase in money outflow for the mandatory insurance will produce a hue and cry for an increase in wages to compensate. Once begun, the wage inflation will continue for a very long while.

Obamacare is the way the debt will be devalued and the problem solved.

[citizen]

Bitcoins, hmmm....How many bitcoins can you bury in your backyard in a mayonnaise jar?

[dalereed]

“No one uses cash anymore.”

Speak for yourself, everyone I know uses cash every day!