Friday, May 13, 2022

Money on trees

When the government announces that it will send money to Ukraine or spend money on Covid control most Americans say those are good ideas. That is easy because it feels like someone else is paying. If there are 150 million Americans working then each $10 billion dollars spent means $66 out of pocket. So if we spend $44 billion on Ukraine and $22 billion on Covid that would be $435 from each working person. If each person was required to write a check for that amount there would be more questions asked as to how this money was to be used and who will be checking to make sure it was used efficiently. The problem is that in too many cases the money is just created out of nothing by the Fed. When President Biden leaned forward and whispered, "I just gave you $1.9 trillion dollars" that money just came from no where so no one cared. Its as if we live in the fantasy world where money grows on trees.

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