Thursday, May 07, 2009

I, Simpleton

Let’s say I earn $40,000 per year and I send $6,000 to the government, another $6,000 for the mortgage, an additional $6,000 for groceries, socked $4,000 into savings and so on including paying for utilities, gasoline, home repairs, clothing and other typical odds and ends in this life that require money. It is very likely that I will have nothing left at the end of the year. It is even more likely that I probably spent a little more than I earned I have incurred some debt in the process. The point is, most of us have a pretty good idea where our money went and why (even though we can’t believe how much we spend!) Our money is making its natural cycle through our economy passing through bank accounts, cash registers and the hands of tradesmen, dry cleaners, drug stores and movie theaters. Now, imagine that a government prints a trillion dollars out of thin air and distributes it to a limited number of banks, brokerage firms, insurance companies and a handful of other huge corporations. Something tells me this money is not making any natural cycles through our economy – at least the part of our economy that impacts a guy that makes $40,000 per year. Where is this money – seriously, where did it go? Someone received it – it still exists – but where is this money? This question must be answered.


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