Did you spend you stimulus checks?

Discussion in 'General Chat' started by ahkip, May 7, 2008.

  1. ahuddy

    ahuddy Peon

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    #21
    See that is exactly what is killing our economy. You need to spend the money so that our economy can start to work properly. Please learn economics and how the money system in America functions. For the good of our country. By you not spending the money, that is actually hurting our economy even more than the government not sending you a check.

    I used my money for new tires for my car btw.
     
    ahuddy, May 23, 2008 IP
  2. damian.hoffman

    damian.hoffman Peon

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    #22
    Mine was sent to the um...government...defaulted student loan... :(
    Hope it stimulated them!
     
    damian.hoffman, May 23, 2008 IP
  3. GRIM

    GRIM Prominent Member

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    #23
    Yeah because issuing money that the government does not have is so great for the economy :rolleyes:

    I spend money in the first place, money I actually have, not phantom money that is being loaned to us by such places as the Chinese.
     
    GRIM, May 23, 2008 IP
  4. ahuddy

    ahuddy Peon

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    #24
    The money is not being loaned to us by China, please explain to me how it being loaned to us from China? I'll give you a clue, our money is not even created by the government. The central banking system is a PRIVATE BANK.

    My point is not to argue with you about government spending. But stimulus money will actually help the economy if it is spent and begins its circulation through the economy. Right now there is not enough money transferring hands.
     
    ahuddy, May 23, 2008 IP
  5. GRIM

    GRIM Prominent Member

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    #25
    :rolleyes:

    Yeah because no foreign entity is financing our debt.

    Hell private citizens could spend money they don't have to help the economy, putting themselves more into debt, yep that surely sounds like a grand solution.
     
    GRIM, May 23, 2008 IP
  6. Ikaruga

    Ikaruga Active Member

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    #26
    I banked the money.
     
    Ikaruga, May 23, 2008 IP
  7. guerilla

    guerilla Notable Member

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    #27
    What is money? Is it only paper, or does it convey economic production and consumption values?

    If I just start printing money, does that mean I am rich? If the government prints up billions of dollars for stimulus, does that mean we produced any more goods or worked even 1 minute of overtime? Are we richer when we print more money?

    The money for stimulus came from a government that is running a deficit.

    Example,

    Taxes in, $100 billion

    Government spending, $150 billion

    The Government has to borrow the extra $50 billion, and does so by creating and selling government bonds.

    Much of our debt is held by foreigners.

    Now, back to stimulus.

    Taxes in $100 billion, Government spending $150 billion, $50 billion deficit. Now add another $25 billion in stimulus *refunds* without cutting any spending.

    You get $100 taxes in, $175 government spending and stimuluses, deficit $75 billion.

    It's likely that foreigners have provided the money for stimulus as a loan, so we can buy and consume their goods. Pretty good deal, since they will be able to charge us interest on our consumptive spending.

    Of course, the debt may have been issued against ourselves, with the FED buying the government securities through open market operations.

    Either way, your stimulus is not "free money" or a "refund". It is borrowed against the American people's future taxes, and your taxes this year and for many years hence will be spent paying the service charges (interest) on the stimulus, instead of going into medicare, education, defense or social security.

    Stimulus like this has been done before, and usually doesn't work. It's not "real" money, and like the bloated war spending, the government is wrong when they tell you to "just go shopping". The country is being bankrupted.

    Your theory that increasing the velocity of money by counterfeiting is seriously incorrect.

    If all of the goods in the economy are equal to $5 trillion, and you add another trillion to the money supply, do you have more goods? No, all of the prices of the goods in the economy adjust to a new total of $6 trillion. You get inflation.

    Before you lecture other people on how economics works, you might want to beef up your knowledge.

    You can get this great book for cheap.

    Or read about inflation from the same author for free
    http://www.mises.org/books/inflation.pdf

    :)
     
    guerilla, May 23, 2008 IP
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  8. torrentstorage

    torrentstorage Peon

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    #28
    great post guerilla.. Im going to market one of my sites with the money
     
    torrentstorage, May 23, 2008 IP
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  9. guerilla

    guerilla Notable Member

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    #29
    That's capital investment. That's probably a decent idea, because you will liquidate your own debt by (hopefully) turning a profit.

    These people who are spending it on consumer goods and entertainment, they are just throwing it away and running up the debt.
     
    guerilla, May 23, 2008 IP
  10. glenndorsey

    glenndorsey Guest

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    #30
    Mind just went in the bank and got eaten by the bills along with every other penny I make.
     
    glenndorsey, May 23, 2008 IP
  11. snowbird

    snowbird Notable Member

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    #31
    I never got mine, but it will be used to pay some bills.
     
    snowbird, May 23, 2008 IP
  12. donlin

    donlin Active Member

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    #32
    I haven't gotten mine yet either, will use it to buy some new tires for my car.
     
    donlin, May 23, 2008 IP