How Smart Is Our Government???

@Arkie69 (2156)
United States
February 8, 2009 1:30pm CST
Just how smart is our government and just how dumb do they think we are? Now pay attention and keep up with me on this. A couple of years ago there was some news on the Federal Reserve that prints our money. They made the statement that it cost the Federal Reserve 9/10 of one cent to print any size bill. If they print $1,000 bills they can print $1,000,000 at a cost of $9. That figures $9,000 per $1 billion. Now they are getting ready to spend $780 billion on the stimulus package. It will cost our government $780 billion to do this. Are you with me? One small change could be made and it would cost our government only a small fraction to do the very same thing. All the government would have to do is remove the Federal Reserve and start printing the money themselves. They could put this same $780 billion into circulation at a cost of only $7,020,000. With this $780 billion changing hands how long would it take our government to get every cent of the $7,020,000 back in federal income tax? You can be sure it wouldn't take them long. Now to make matters even worse chew on this one a little while. At some point between the printing presses of the Federal reserve and our local banks someone starts charging face value for the money. Is the Federal reserve selling $1,000 bills at a profit of $999.99 cents per bill? Someone sure as hell is and it ain't me. Exactly who is making all this profit? I think that is something we need to find out and make known to the public. Oh I'm sure it can be explained. Think about what I just said and see if you can help me figure this one out. Art
1 person likes this
4 responses
@stealthy (8188)
• United States
8 Feb 09
Currency is not a commodity like corn or something. To just print the money would cause inflation, etc. Now the Fed. does increase the amount of money in circulation sometimes to help in some situations but not in the way you are suggesting. And by the way a penny is worth more than a penny, a nickel is worth almost a dime, etc, just from the metals in them. Where the government is not smart is that there are so many members of Congress and other elected officials who go just by polls or lobbyists and make decisions on all kinds of things that they know nothing about, especially technical things. One good example is they listened to extreme environmentalist about making ethanol from corn and this drove food prices way up and is resulting the extreme polution of water ways from the fertilyzer run off.
@Arkie69 (2156)
• United States
9 Feb 09
I agree with what you say but these trillions of dollars is what I am talking about. Think of it this way. If there is huge amounts of cash just piled up our government can get to do something like this then that is a problem within it's self. That money should be in circulation in our economy. I remember during the Iraq War they reported that 3 semi truck loads of American cash was found,(lost later of course), but the fact it was stashed in Iraq tells me there is a serious problem with the money supply. I honestly believe the printing presses have been fired up and are printing money 24/7. I don't have anything to back that up but if this wasn't the case I don't think they will have these trillions of dollars to play around with the way they are. You and I both may be wrong but I agree with you 100% on what you say about the polls and lobbyists. The Ethanol is a good example of people not looking at something from all angles. If we are not real careful they are going to do the very same thing with this Green Energy thing. The same applies to the Hybrid cars. It takes "X" amount of energy to move weight from point A to point B I don't care what method you use and you cannot change that. Art
@K46620 (1996)
• United States
9 Feb 09
Every time the Federal Reserve prints money, it is either to replace worn out money or increase the amount of money that is in circulation. Since only a small amount of money needs to be replaced on a regular basis, the rest is used to increase the money supply, i.e. inflation. When the amount of money in circulation increases, while the amount of goods remains the same, it requires more dollars to get the same amount of goods. This money is simply printed sheets of paper; the paper itself has almost no value. Think about it, except for the ink printed on a bill, there is no difference between a $1 bill and a $100 bill. The only reason it is worth more is because the government says it is and enforces that. That means they can create as much money as they desire, all the while reducing the value of money in circulation (your money). So each time the Federal Reserve injects extra cash in the economy, they are literally indirectly taxing you, by taking away your purchasing power. They are taxing without representation. What is the solution? Our money must actually have value, like gold and silver does. That is why the Constitution says, in Article 1, Section 10, that "No state shall...make any Thing but gold and silver Coin a Tender in Payment of Debts;" So this paper fiat money we use is actually illegal! So who is making the short term profit on this printed money? Whoever gets the money, as far as I see it. So if a big bank makes some stupid mistakes and gets bailed, they are the ones walking off with the profit. I just wonder why the same people making the problems related to the current economic crisis are supposedly the ones who can fix it?!?
@K46620 (1996)
• United States
9 Feb 09
I think the prices going up and down is a reaction of the market to the extra money inserted into circulation. There may be some other things that influence inflation, but I think all the extra cash is the main one.
@Anne19 (300)
• Philippines
9 Feb 09
Your government is far more better than mine. Mine was like the most stupid and corrupt government in the world. Hope they'll change eventually.
@Arkie69 (2156)
• United States
9 Feb 09
I don't know what your government is but I wouldn't bet mine is any better. I think the truth is if something doesn't change the US government is going to keep on screwing around until they bring the whole world down. They may have already don't it will all this fancy sidestepping with our economy. There are some thing we should just leave alone if we don't know what we are doing and this gathering of idiots we now call our government has no idea what is going on. Art
@DonnaLawson (4032)
• United States
9 Feb 09
The extra money goes to the postal service for the shipping.. I am not sure how much one dollar weighs, not much, but a stack of bills would weigh a good bit, according to how big the stack was.. So, the post office has to charge according to weight and my guess would be that the extra goes to the post office or, maybe in some of our elected officials pockets.. I can't comprehend this amount but I do agree with you 1000%, Someone sure as hell is getting the money and it ain't me either.. You need a job in the government, you may just save us a few trillion dollars.. I am not sure if that is the highest amount that you can go to or not but on the lighter side let me add a joke in here.. Skydivers killed A Blonde is watching the news with her husband when the newscaster says,"Two Brazilian men die in a skydiving accident." The blonde starts crying to her husband, sobbing, "That's horrible!!! So many men dying that way!" Confused, he says, "Yes dear, it is sad, but they were skydiving, and there is always that risk involved." After a few minutes, the blonde, still sobbing, says, "How many is a Brazilian?" Well, when our government figures this amount out, that is what our National Debt will be a few Brazilian..
@Arkie69 (2156)
• United States
9 Feb 09
That's a cute joke but sad to say there is a lot of truth in it. Thanks for sharing it. I don't know about you but when our government starts talking about spending trillions of dollars on something that they are not even sure it will work that scares the heck out of me. It make me wonder how much they are going to want to do in the future when they don't know if it will work or not. We are paying people in Washington huge amounts of money that are supposed to know these things. If they don't know and still take our money then we are paying them for nothing and that makes me mad. It wouldn't do for me to go to Washington with a free tongue. I would wreck the joint in short order. After a couple of hours there would be a hit contract out on me. I sure would enjoy looking some of the idiots in the eye and telling them what I think of them. Art