When the Government Prints Money

dvs141641.jpegPosted by Tina

Can’t happen here, right? THE SAVAGE TRUTH | The perils of creating too much paper money, by Terry Savage – New York Sun Times

** Over the weekend, the Zimbabwe central bank announced it is about to distribute a new $50 BILLION note! That’s Zimbabwe dollars. One U.S. dollar is worth 25 billion Zimbabwe dollars. One $50 billion note will buy two loaves of bread. Today. Probably only one loaf of bread by the time it gets into circulation. That’s what happens when a country creates too much paper money, or equivalent credit. *** It certainly couldn’t happen here. Our financial leaders are much too smart. And so are we. (I always believe that — except when I catch Jay Leno “streetwalking” and realize how little our citizens know about current events, much less history.) *** The fact that the Congressional Budget Office has just announced a $1.2 TRILLION budget deficit for the year makes little impact. The fact that the president-elect says the stimulus package will involve huge costs on top of that projected deficit is taken with a yawn. After all, we’re America. Our dollar is still the world’s strongest currency. **

We need our “golden egg” to be strong to survive and grow out of this mess…can’t get there by taxing the rich, punishing business and growing the government.

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