Wonder what a trillion dollars looks like?

Here you go…:shock::shock:

And when our government prints a trillion, it reduces the value of all our money. Printing=Taxing.


Click graphic to enlarge

We are repeating Japan’s mistakes.

The Wall](http://market-ticker.denninger.net/archives/2009/04/04.html)

Japan found it, and discovered that attempting to “print” one’s way out of a severe recession caused by excessive credit doesn’t work - it simply transfers the debt to the government but any “recovery” that allegedly comes from this exercise is both short-lived and followed by an even worse decline. The Nikkei was beyond 30,000 when their bubble originally popped and hasn’t been anywhere near since. Nor have property values recovered.

All that Japan managed to do is transfer that debt to the government where it has remained like a millstone around the neck of the economy, causing further slowdowns (like the current one) to be far more damaging…

There is no escape from reality; you can attempt to postpone it once again as was done in 2000, but whether Ben can succeed this time, with a far poorer macro environment, is dubious at best.

Unfortunately the price of failure, this time around, could literally mean failure of the United States politically and economically, since in the process of trying to prevent the natural outcome of a credit bubble Ben has shifted a tremendous amount of liability from private parties where it belongs onto the sovereign balance sheet of The United States, setting up the potential for a monstrous (and potentially disastrous) failure.

If only the US was the only one in financial crisis the Japan comparison might have some bearing, alas, we are not alone, so the comparison is dumb. :wink:

Carry on. :mrgreen:

And you missed the point by a wide margin Brian.

I can’t remember the last “pint” I missed. :mrgreen::mrgreen::mrgreen:

The current problem is not the amount of money, the problem is no one is spending the money.


Go read the link in my post. You may begin to understand.

I didn’t get it right away.

Think about it like this.

Cash and credit are not the same but they spend the same.

We have a contraction in credit going on preventing inflation at the moment.

But our government is busy trying to get credit moving again.
If they succeed then their will be more “money” chasing goods and driving inflation.

So be careful what you wish for.