What did the $2 trillion dollars just printed do to value of the dollar?
The M2 just got a $2 trillion dollar increase. What did that do to all the money that has been previously borrowed by the US Government? And how will it effect the value of the dollar?
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i heard it was one trillion but it will have the same effect. devalue the dollar and cause inflation.
Actually it was $3 trillion. And it's going to mean inflation as soon as people stop being scared about the economy and demand returns.
Keep in mind that $3T is a DOUBLING of the money supply. For every dollar that existed 90 days ago there are now two dollars so we just had an effective real dollar inflation rate of 100%. This hasn't trickled down to consumer pricing yet and won't until people stop being scared, but as soon as people start buying things again ... pricing is going to increase.
The fed is claiming it's doing this to prevent deflation, but the reality is that it is giving all of this money to it's Wall Street buddies to preserver their influence. All of these companies that can't eat their losses should be going under and replaced by the new small/medium size banks that weren't quite as stupid as these people.
Nothing...The US dollar is based on the FIAT system...Basically it says that the government promises that your dollars is worth a dollar...We are not on a standard where the value of our money is based on how much is out there...When we were on the the gold standard it was thought that your dollar was worth a dollars worth of gold, there for the government would have to have atleast a dollars worth of gold to back up that dollar...Since we no longer use that system our money is just as worthless as the paper its printed on....Its just a promise to the people thats it has value...So printing more money has no effect on the value of it...
What happened to the 2 1/2 trillion dollars that went missing on the morning of 911, they knew that question would get buried after 911, and it has.
This devalues the dollar. It was done to create controlled inflation.
We can only hope that it won't backfire.
Currently our dollar's value has dropped 27%.
made it worth less.
Since everyone basically spent way more than they should of, how is releasing more credit the answer?
How about if the world leaders act like our parents when we graduate college and just "forgive" a few trillion on debt?
Seems like Norton had it right in "Fight Club". "If you erase the debt record, then we all go back to zero"
Basically we now have rough TP, formerly known as "the dollar".
It will turn it into Monopoly money...wait..it already is...