$16 Trillion - Was this Money Printed, or Am I Imagining Things ?

[gunDriller]

I'm talking about this article about the bank bail-outs from 2007 to today.

According to this article - $16,000,000,000,000 worth.

"$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious - the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is "only" $14.5 trillion."


How is this money NOT being created out of thin air ? The banks can turn around & spend it.

If they default, is the money then effectively destroyed ?

Just imagine what would happen to the price of PM's if the Fed announced a Quantitative Easing program of $16 Trillion. When they announced QE1 ($300 Billion), Gold jumped about 9% in 24 hours (though it did lose about 2/3 of that jump, during the next few weeks. QE1 was announced officially on March 18, 2009.)

Anyway, I have the feeling that the US gov is printing money WAY above & beyond what they officially announce. This article supports that view. Also, some of Denninger's research comes to the same conclusion - he tracks bond-sales and finds that the US gov. buys them back from the same Primary Dealers that buy the bonds in the first place.

It gives me more respect for the various market-watchers calculations of the effective price of gold ($5K, $12K, etc.)


http://www.silverbearcafe.com/private/10.11/gaoaudit.html

[midnight rambler]

The question is: does the creation of digits in a database (i.e. increasing the amount of debt) = 'printing money' when there has not been a matching of printing pieces of paper with numbers on them (currency)?

[mamboni]

Ultimately, we the people have no idea how many $trillions these banksters are creating out of thin air, electronic or paper. If they have the power to do it, and it will keep them in control, then rest assured that they will print and monetize and not stop until you and I are wiped out by inflation and in the streets hungry and pissed off. So far, only a few Americans are in the latter stance. But this number will grow manyfold before the dollar game is played out. This is why you must own physical gold and silver - it is historic wealth that the banksters cannot fool or steal. Gold and silver immunize you from the bankster theft of the people's wealth.

[midnight rambler]

In the foreseeable future genuine wealth will be measured by how well you can feed yourself and your family, along with having shelter* to keep you warm and dry.

*i.e. if one is able to continue to play the 'property tax' game (in Texas one's homestead cannot be seized for property taxes unless and until one has passed on)

[gunDriller]

Gold and silver immunize you from the bankster theft of the people's wealth.

the way a vaccine is supposed to work - without the autism ?

[Joe King]

The question is: does the creation of digits in a database (i.e. increasing the amount of debt) = 'printing money' when there has not been a matching of printing pieces of paper with numbers on them (currency)?They never match the creation of and the printing of FRNs. All of it is created as nothing more than digits in a database. The only reason any is physically printed is to satisfy the demand of customers who have a Right to draw on an account in that database, and are asking for cash.
ie FRNs are nothing more than the physical representation of debt that already exists in the "database".

[Neuro]

the way a vaccine is supposed to work - without the autism ?

I think the vaccine is working as it is supposed to work, with autism, ADHD, ADD, asthma, allergies, and reduced immunity to diseases...

[Sparky]

Wouldn't $16T have had a more visible impact on inflation? The entire money supply in 2007 was less than $15T. I think the $16T number is bogus. They've documented $2T-$3T.

That being said, I think the inflation tipping point will come when the U.S. has to ultimately step in and bail out the European debt crisis. It's a win-win; the U.S. inflates the money supply to bail out Europe, thereby decreasing the burden of our own enormous debt which we can pay back in newly weakened dollars. I'm telling you dollar-haters that the USD will be the currency hero, even as it loses it's purchasing power.

[gunDriller]

I'm telling you dollar-haters that the USD will be the currency hero, even as it loses it's purchasing power.

true. but bacon is still getting expensive.

$10 a pound for thick cut bacon - at a discount supermarket.

had to go to Grocery Outlet to get some bacon for $2.50 a pound.

makes me thing about getting a pig.

[madfranks]

I talked to my aunt today, who reminisced to me about when she was a girl and could buy a hershey bar for $0.05 and a gallon of gas for $0.12. Of course, a silver half dollar or silver dollar could still buy you the same today, but how much gas will the fiat $.50 buy you today? It's absolutely amazing how much our money has been debased, and even more amazing that people consider inflation to be natural, blameless to anyone.

[Joe King]

Wouldn't $16T have had a more visible impact on inflation? The entire money supply in 2007 was less than $15T. I think the $16T number is bogus. They've documented $2T-$3T.No, because per my understanding that "money" was only created and used to shore-up balance sheets in order to keep the banks solvent long enough for the under-lying economy to recover.
ie it buys time for the too-big-to fails, and in theory, as long as the "money" doesn't actually get spent into circulation it shouldn't have much effect on inflation. It's when the newly created "money" goes looking for goods and services that price inflation rears its ugly head.



That being said, I think the inflation tipping point will come when the U.S. has to ultimately step in and bail out the European debt crisis. It's a win-win; the U.S. inflates the money supply to bail out Europe, thereby decreasing the burden of our own enormous debt which we can pay back in newly weakened dollars. I'm telling you dollar-haters that the USD will be the currency hero, even as it loses it's purchasing power.Yea, who knows how it's going to play out. Dollar might last longer than anyone thinks.
...or not.

We'll all find out together, I suppose.

[Sparky]

... It's absolutely amazing how much our money has been debased, and even more amazing that people consider inflation to be natural, blameless to anyone.
Yep, and it's going to continue. My only point is that there hasn't been any commensurate inflation bump since the money supply was opened up in 2007. But I think it's coming following a Euro-bailout in about 2 years time.

Oh, and you're right about how people consider inflation to be natural. That's why the politicians love it.