Is Trying To Spend Your Way Out Of Debt Similar To Claiming If You Still Have Checks, You Have Money? | LayOffProtection.org

pcip.gov badge

Free Information
«  
  »

Is Trying To Spend Your Way Out Of Debt Similar To Claiming If You Still Have Checks, You Have Money?

Obviously checks are just paper. You can write as many as you want, but it’s still paper.
This is similar to the Federal Reserve printing dollars. Dollar bills aren’t backed by anything of value….they’re paper. But when the govt. needs to pay for something it can’t afford they monetize debt (“print” money). Well just because you have more paper dollars doesn’t mean you have any more money. It just means each paper dollar is worth less than it was before you printed all the new ones.

December 24th, 2009 | Tags: , , , , , , , , | Category: Debt

1 comment to Is Trying To Spend Your Way Out Of Debt Similar To Claiming If You Still Have Checks, You Have Money?

  • Kathryn P
    December 25, 2009 at 2:09 am

    I agree.
    If you make more dollars, than each dollar is worth less. If you make more peanut butter, then each jar will cost less. Same concept.
    When the US Government just mints new dollar bills then there will be so much money floating around that the value will not be as high.
    Interesting.