Pretty Soon it Adds up to Real Money
Posted in * Economics, Politics, Budget, Economy, Federal Reserve, Office of the President, Politics in General, President Barack Obama, The 2009 Obama Administration Bank Bailout Plan, The 2009 Obama Administration Housing Amelioration Plan, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Fiscal Stimulus Package of 2009, The National Deficit, The Possibility of a Bailout for the U.S. Auto Industry, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package, The U.S. Government, Treasury Secretary Timothy Geithner
4 comments on “Pretty Soon it Adds up to Real Money”
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In December 1934 and January 1935 the United States printed and distributed $100,000 gold certificates (just like a dollar bill, but with lots more zeros and exchangeable for gold – most appropriately, Woodrow Wilson was pictured on the bills) for use only between Federal Reserve Banks. Until 1969 the United States distributed for public use $10,000, $5,000, $1,000 and $500 bills that were last produced during World War II. Jack Benny famously collected the $10,000 bills. All this is nice trivia, but unless the geniuses now fiddling with the levers of United States economic power have some idea how they are going to stuff back into the bottle the very nasty inflation genie they are creating with the rillions of dollars of fiat money they are creating out of thin air as portrayed in this graphic, we are going to see these classic denomination of U.S. currency come back into widespread daily use. Think Zimbabwe’s economic problems on a slightly smaller scale.
Long live the Obamabuck!
#1. – I’m not sure it will be on a smaller scale. I’m not sure you can quell the coming inflation by raising interest rates a la Paul Volcker. There’s probably already too much fiat money out there. Hope I’m wrong.
Luckily, most of these dollars have been vaporized by the financials’ decline or else we’d have massive inflation already.